*Pages 1--6 from Microsoft Word - 29909* Federal Communications Commission DA 03- 2549 Before the Federal Communications Commission Washington, D. C. 20554 In the Matter of AT& T Corporation Complaint Regarding Unauthorized Change of Subscriber’s Telecommunications Carrier ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) IC No. 01- S49798 01- S53938 01- S54993 01- S56226 01- S60225 01- S61451 01- S63453 01- S63718 01- S64404 01- S64711 01- S65302 01- S65667 02- S66711 02- S67089 02- S67934 02- S69152 02- S69268 02- S71984 02- S73087 02- S75754 02- S79081 02- S79996 02- S80403 02- S80861 02- S81123 02- S81171 02- F0002828 ORDER Adopted: July 29, 2003 Released: July 31, 2003 By the Acting Deputy Chief, Policy Division, Consumer & Governmental Affairs Bureau: 1. In this Order, we consider the complaint 1 alleging that AT& T Corporation 1 See Appendix A 01- S64404, 01- S65302, 02- S71984, 02- S73087 and 02- F0002828 are duplicates of 01- S60225, 01- S64711, 02- S69152, 02- S75754 and 02- S80861, respectively. 1 Federal Communications Commission DA 03- 2549 2 (AT& T) changed Complainants’ telecommunications service provider( s) without obtaining authorization and verification from each Complainant in violation of the Commission’s rules. 2 We conclude that AT& T’s actions did not result in an unauthorized change in Complainants’ telecommunications service provider and we deny Complainants’ complaint. 2. In December 1998, the Commission released the Section 258 Order in which it adopted rules to implement Section 258 of the Communications Act of 1934 (Act), as amended by the Telecommunications Act of 1996 (1996 Act). 3 Section 258 prohibits the practice of “slamming,” the submission or execution of an unauthorized change in a subscriber’s selection of a provider of telephone exchange service or telephone toll service. 4 In the Section 258 Order, the Commission adopted aggressive new rules designed to take the profit out of slamming, broadened the scope of the slamming rules to encompass all carriers, and modified its existing requirements for the authorization and verification of preferred carrier changes. The rules require, among other things, that a carrier receive individual subscriber consent before a carrier change may occur. 5 Pursuant to Section 258, carriers are absolutely barred from changing a customer's preferred local or long distance carrier without first complying with one of the Commission's verification procedures. 6 Specifically, a carrier must: (1) obtain the subscriber's written or electronically signed authorization in a format that meets the requirements of Section 64.1130 authorization; (2) obtain confirmation from the subscriber via a toll- free number provided exclusively for the purpose of confirming orders electronically; or (3) utilize an independent third party to verify the subscriber's order. 7 2 See 47 C. F. R. §§ 64.1100 – 64.1190. 3 47 U. S. C. § 258( a); Telecommunications Act of 1996, Pub. L. No. 104- 104, 110 Stat. 56 (1996); Implementation of the Subscriber Carrier Selection Changes Provisions of the Telecommunications Act of 1996; Policies and Rules Concerning Unauthorized Changes of Consumers’ Long Distance Carriers, CC Docket No. 94- 129, Second Report and Order and Further Notice of Proposed Rule Making, 14 FCC Rcd 1508 (1998) (Section 258 Order), stayed in part, MCI WorldCom v. FCC, No. 99- 1125 (D. C. Cir. May 18, 1999); First Order on Reconsideration, 15 FCC Rcd 8158 (2000); stay lifted, MCI WorldCom v. FCC, No. 99- 1125 (D. C. Cir. June 27, 2000); Third Report and Order and Second Order on Reconsideration, 15 FCC Rcd 15996 (2000), Errata, DA No. 00- 2163 (rel. Sept. 25, 2000), Erratum, DA No. 00- 2192 (rel. Oct. 4, 2000), Order, FCC 01- 67 (rel. Feb. 22, 2001); reconsideration pending. Prior to the adoption of Section 258, the Commission had taken various steps to address the slamming problem. See, e. g., Policies and Rules Concerning Unauthorized Changes of Consumers' Long Distance Carriers, CC Docket No. 94- 129, Report and Order, 10 FCC Rcd 9560 (1995), stayed in part, 11 FCC Rcd 856 (1995); Policies and Rules Concerning Changing Long Distance Carriers, CC Docket No. 91- 64, 7 FCC Rcd 1038 (1992), reconsideration denied, 8 FCC Rcd 3215 (1993); Investigation of Access and Divestiture Related Tariffs, CC Docket No. 83- 1145, Phase I, 101 F. C. C. 2d 911, 101 F. C. C. 2d 935, reconsideration denied, 102 F. C. C. 2d 503 (1985). 4 47 U. S. C. § 258( a). 5 See 47 C. F. R. § 64.1120. 6 47 U. S. C. § 258( a). 7 See 47 C. F. R. § 64.1120( c). Section 64.1130 details the requirements for letter of agency form and content for written or electronically signed authorizations. 47 C. F. R. § 64.1130. 2 Federal Communications Commission DA 03- 2549 3 3. The Commission also has adopted liability rules. These rules require the carrier to absolve the subscriber where the subscriber has not paid his or her bill. In that context, if the subscriber has not already paid charges to the unauthorized carrier, the subscriber is absolved of liability for charges imposed by the unauthorized carrier for service provided during the first 30 days after the unauthorized change. 8 Where the subscriber has paid charges to the unauthorized carrier, the Commission’s rules require that the unauthorized carrier pay 150% of those charges to the authorized carrier, and the authorized carrier shall refund or credit to the subscriber 50% of all charges paid by the subscriber to the unauthorized carrier. 9 Carriers should note that our actions in this order do not preclude the Commission from taking additional action, if warranted, pursuant to Section 503 of the Act. 10 4. We received Complainants’ complaints alleging that Complainants’ service provider( s) had been changed without Complainants’ authorization. Pursuant to Sections 1.719 and 64.1150 of our rules, 11 we notified AT& T of the complaints and AT& T responded. 12 Based on the information provided by AT& T and Complainants’ local exchange carriers, we find that AT& T has not violated our carrier change rules. 13 8 See 47 C. F. R. §§ 64.1140, 64.1160. Any charges imposed by the unauthorized carrier on the subscriber for service provided after this 30- day period shall be paid by the subscriber to the authorized carrier at the rates the subscriber was paying to the authorized carrier at the time of the unauthorized change. Id. 9 See 47 C. F. R. §§ 64.1140, 64.1170. 10 See 47 U. S. C. § 503. 11 47 C. F. R. § 1.719 (Commission procedure for informal complaints filed pursuant to Section 258 of the Act); 47 C. F. R. § 64.1150 (procedures for resolution of unauthorized changes in preferred carrier). 12 See Appendix A. 13 If Complainant is unsatisfied with the resolution of this complaint, Complainant may file a formal complaint with the Commission pursuant to Section 1.721 of the Commission’s rules, 47 C. F. R. § 1.721. Such filing will be deemed to relate back to the filing date of Complainant’s informal complaint so long as the formal complaint is filed within 45 days from the date this order is mailed or delivered electronically to Complainant. See 47 C. F. R. § 1.719. 3 Federal Communications Commission DA 03- 2549 4 5. Accordingly, IT IS ORDERED that, pursuant to Section 258 of the Communications Act of 1934, as amended, 47 U. S. C. § 258, and Sections 0.141, 0.361 and 1.719 of the Commission’s rules, 47 C. F. R. §§ 0.141, 0.361, 1.719, the Complaint filed by Complainants ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION Nancy A. Stevenson, Acting Deputy Chief Policy Division Consumer & Governmental Affairs Bureau 4 Federal Communications Commission DA 03- 2549 5 APPENDIX A INFORMAL COMPLAINT DATE OF COMPLAINT DATE OF CARRIER RESPONSE 01- S49798 April 11, 2001 May 25, 2001 01- S53938 April 3, 2001 July 13, 2001 01- S54993 June 4, 2001 July 11, 2001 01- S56226 June 18, 2001 August 6, 2001 01- S60225 July 31, 2001 September 14, 2001 01- S61451 June 29, 2001 October 2, 2001 01- S63453 August 23, 2001 November 2, 2001 01- S63718 August 24, 2001 November 5, 2001 01- S64711 September 11, 2001 November 13, 2001 01- S65667 September 20, 2001 November 26, 2001 02- S66711 October 19, 2001 January 23, 2002 02- S67089 January 10, 2002 February 8, 2002 02- S67934 January 9, 2002 April 4, 2002 02- S69152 March 15, 2002 May 23, 2002 02- S69268 February 15, 2002 April 11, 2002 02- S73087 February 8, 2002 June 21, 2002 02- S79081 July 19, 2002 September 27, 2002 02- S79996 August 28, 2002 October 7, 2002 02- S80403 July 18, 2002 October 7, 2002 02- S80861 October 9, 2002 November 7, 2002 02- S81123 October 25, 2002 December 10, 2002 02- S81171 October 28, 2002 December 11, 2002 5 Federal Communications Commission DA 03- 2549 6 6