*Pages 1--4 from Microsoft Word - 32958* Federal Communications Commission DA 03- 3531 Before the Federal Communications Commission Washington, D. C. 20554 In the Matter of WorldCom, Inc. Complaint Regarding Unauthorized Change of Subscriber’s Telecommunications Carrier ) ) ) ) ) ) ) IC Nos. 02- B0002274 02- B0009364 02- B0010749 02- S76256 02- S81376 02- S81838 03- S82587 03- S82640 03- S82644 03- S82766 03- S82790 03- S82883 03- S82862 03- S82931 03- S83129 03- S83144 03- S83171 03- S83264 03- S83273 03- S83285 ORDER Adopted: November 3, 2003 Released: November 7, 2003 By the Acting Deputy Chief, Policy Division, Consumer & Governmental Affairs Bureau: 1. In this Order, we consider the complaint 1 alleging that WorldCom, Inc., (WorldCom) changed Complainants’ telecommunications service providers without obtaining authorization and verification from Complainant in violation of the Commission’s rules. 2 We conclude that WorldCom’s actions did not result in an unauthorized change in Complainants’ telecommunications service providers and we deny Complainants’ complaints. 2. In December 1998, the Commission released the Section 258 Order in which it 1 See Appendix A. 2 See 47 C. F. R. §§ 64.1100 – 64.1190. 1 Federal Communications Commission DA 03- 3531 2 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 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 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. 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. 2 Federal Communications Commission DA 03- 3531 3 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’ telecommunications service providers had been changed to WorldCom without Complainants’ authorization. Pursuant to Sections 1.719 and 64.1150 of our rules, 11 we notified WorldCom of the complaints and WorldCom responded. 12 We find that WorldCom has produced clear and convincing evidence of a valid authorized carrier change by Complainants. 13 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 against WorldCom ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION Nancy A. Stevenson, Acting Deputy Chief Policy Division Consumer & Governmental Affairs Bureau 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 Complainants’ 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- 3531 4 APPENDIX INFORMAL COMPLAINT( S) COMPLAINANT( S) DATE OF INCOMING COMPLAINT DATE OF CARRIER RESPONSE 02- B0002274 Delphine Purnell July 8, 2002 January 13, 2003 02- B0009364 Sarah G. Kelly October 8, 2002 May 13, 2003 02- B0010749 Patrick McShaw October 9, 2002 March 11, 2003 02- S76256 Patricia Kowalewski April 29, 2002 December 13, 2002 02- S81376 Gilda Romanolo October 30, 2002 January 16, 2003 02- S81838 Ellsworth Stickley September 11, 2002 September 9, 2003 03- S82587 Kazimierz Tylka November 15, 2002 April 18, 2003 03- S82640 Connie Rigotti January 17, 2003 April 1, 2003 03- S82644 Amrik Singh January 29, 2003 April 18, 2003 03- S82766 Gloria Marshall February 11, 2003 May 13, 2003 03- S82790 Paul Vanderhulst March 27, 2003 April 24, 2003 03- S82883 Marleen Padbeg o/ b/ o Eileen Kruse February 19, 2003 April 18, 2003 03- S82862 Margaret Burms o/ b/ o Michael Barns February 14, 2003 April 16, 2003 03- S82931 Audrey Steinmeyer February 26, 2003 April 24, 2003 03- S83129 Irina Strunina March 11, 2003 June 6, 2003 03- S83144 Mary Green o/ b/ o Ida Daniels March 10, 2003 June 6, 2003 03- S83171 Dorothy Zywalewski March 24, 2003 June 6, 2003 03- S83264 Collette Hinrichsen o/ b/ o Ester Schmidt March 5, 2003 June 6, 2003 03- S83273 Stanley D. Morris o/ b/ o Stanley H. Morris March 24, 2003 May 13, 2003 03- S83285 Wayne Munscher June 24, 2003 May 16, 2003 4