*Pages 1--4 from Microsoft Word - 38810* Federal Communications Commission DA 04- 1591 Before the Federal Communications Commission Washington, D. C. 20554 In the Matter of MCI, Inc. Complaint Regarding Unauthorized Change of Subscriber’s Telecommunications Carrier ) ) ) ) ) ) ) IC Nos. 02- B0012074 02- S72010 02- S72796 02- S73547 02- S79789 02- S80082 02- S80783 02- S81714 02- S81862 02- S82029 03- E0040412S 03- I0039325S 03- I0045385S 03- S82789 03- S82842 03- S84588 03- S82974 03- S84979 03- S84480 03- S85086 03- S83814 03- S85188 ORDER Adopted: May 28, 2004 Released: May 28, 2004 By the Deputy Chief, Consumer Policy Division, Consumer & Governmental Affairs Bureau: 1. In this Order, we consider the complaint 1 alleging that MCI, Inc., (MCI) changed Complainants’ telecommunications service providers without obtaining authorization and verification from Complainants in violation of the Commission’s rules. 2 We conclude that MCI’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 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 v. FCC, No. 99- 1125 (D. C. Cir. May 18, 1999); First Order on Reconsideration, 15 FCC Rcd 8158 (2000); stay lifted, MCI 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); Third Order (continued….) 1 Federal Communications Commission DA 04- 1591 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% of (Continued from previous page) on Reconsideration and Second Further Notice of Proposed Rule Making, 18 FCC Rcd 5099 (2003); Order, FCC 03- 116, (rel. May 23, 2003). 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 04- 1591 3 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 were changed to MCI without Complainants’ authorization. Pursuant to Sections 1.719 and 64.1150 of our rules, 11 we notified MCI of the complaints and MCI responded. 12 We find that MCI did not violate our carrier change rules. 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 complaints filed by Complainants against MCI ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION Nancy A. Stevenson, Deputy Chief Consumer 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 a Complainant is unsatisfied with the resolution of this complaint, such 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 such Complainant. See 47 C. F. R. § 1.719. 3 Federal Communications Commission DA 04- 1591 4 APPENDIX A INFORMAL COMPLAINT NUMBER DATE OF INCOMING COMPLAINT DATE OF CARRIER RESPONSE 02- B0012074 October 4, 2002 February 4, 2003 02- S68196 February 26, 2002 April 30, 2002 02- S71573 April 4, 2002 December 10, 2002 02- S72010 March 25, 2002 June 13, 2002 02- S72796 February 28, 2002 December 4, 2002 02- S73547 May 14, 2002 July 31, 2002 02- S79146 June 20, 2002 December 13, 2002 02- S79366 July 3, 2002 January 7, 2003 02- S79789 July 22, 2002 January 7, 2003 02- S80082 August 16, 2002 December 4, 2002 02- S80460 November 4, 2002 December 13, 2002 02- S80783 October 7, 2002 December 13, 2002 02- S81714 November 19, 2002 February 4, 2003 02- S81862 December 9, 2002 March 4, 2003 02- S82029 December 10, 2002 February 21, 2003 03- E0040412S May 1, 2003 August 1, 2003 03- I0039325S April 24, 2003 August 11, 2003 03- I0045385S June 10, 2003 September 23, 2003 03- S82789 February 10, 2003 April 24, 2003 03- S82842 February 25, 2003 May 1, 2003 03- S82974 February 20, 2003 April 24, 2003 03- S83814 May 5, 2003 August 22, 2003 03- S84480 July 17, 2003 September 5, 2003 03- S84584 July 3, 2003 September 29, 2003 03- S84588 April 29, 2003 September 29, 2003 03- S84840 August 2, 2003 October 14, 2003 03- S84979 September 18, 2003 November 11, 2003 03- S85086 September 22, 2003 November 20, 2003 03- S85188 September 23, 2003 December 4, 2003 4