*Pages 1--4 from Microsoft Word - 33747* Federal Communications Commission DA 03- 3797 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. 03- S82824 03- S82861 03- S83368 03- S83543 03- S83625 03- S83722 03- S83728 03- S83805 03- S83821 03- S83835 03- S83879 03- S84299 03- S84396 03- S84427 03- S84493 03- S84565 03- S84569 ORDER Adopted: November 25, 2003 Released: November 28, 2003 By the Acting Deputy Chief, Policy Division, Consumer & Governmental Affairs Bureau: 1. In this Order, we consider the complaints 1 alleging that WorldCom, Inc., (WorldCom) changed Complainants’ telecommunications service providers without obtaining authorization and verification from Complainants 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 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 1 See Appendix A. 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 (continued….) 1 Federal Communications Commission DA 03- 3797 2 “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 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% (Continued from previous page) 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- 3797 3 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’ authorizations. 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 did not violate our carrier change rules. 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 complaints 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. 3 Federal Communications Commission DA 03- 3797 4 APPENDIX A INFORMAL COMPLAINT NUMBER COMPLAINANT( S) DATE OF COMPLAINT DATE OF CARRIER RESPONSE 03- S82824 Donita Wilson February 20, 2003 October 28, 2003 03- S82861 Nicolle Washington February 25, 2003 October 28, 2003 03- S83368 Janice Dudley March 31, 2003 June 6, 2003 03- S83543 Maria Tapia March 24, 2003 June 10, 2003 03- S83625 Wilbur Back April 14, 2003 June 23, 2003 03- S83722 Mary Rusk April 23, 2003 June 30, 2003 03- S83728 Marya Fry o/ b/ o Annemarie Nirk April 28, 2003 July 1, 2003 03- S83805 Spencer and Gail King April 29, 2003 August 1, 2003 03- S83821 James McGreevy April 17, 2003 August 1, 2003 03- S83835 Douglas Montgomery April 8, 2003 July 1, 2003 03- S83879 Gary Engler May 6, 2003 August 1, 2003 03- S84299 Dorothy Ray o/ b/ o Norine Eddy June 23, 2003 August 25, 2003 03- S84396 Larae Schauer June 25, 2003 September 8, 2003 03- S84427 Bizelli Heating & Cooling Company June 23, 2003 September 11, 2003 03- S84493 Creative Builders July 18, 2003 September 11, 2003 03- S84565 Brian Keiper July 22, 2003 September 22, 2003 03- S84569 Emily Pryor o/ b/ o Guy Pryor July 21, 2003 September 22, 2003 4