*Pages 1--6 from Microsoft Word - 36194* Federal Communications Commission DA 04- 529 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 Nos. 03- S82674 03- S83309 03- S85197 03- S85200 03- S85205 03- S85364 03- S85386 03- S85397 03- S85399 03- S85452 03- S85454 03- S85494 03- S85502 03- S85582 03- S85664 03- S85789 03- S85792 03- S85889 03- I0053127S 03- I0062350S 03- I0068730S 03- I0068770S 03- S000337S 04- S85911 ORDER Adopted: February 25, 2004 Released: February 27, 2004 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 (AT& T) changed Complainants’ telecommunications service provider( s) without obtaining 1 See Appendix A. 1 Federal Communications Commission DA 04- 529 2 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); Third Order 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. 2 Federal Communications Commission DA 04- 529 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 providers 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 We find that AT& T has produced clear and convincing evidence of a valid authorized carrier change. 13 Therefore, we find that AT& T’s actions did not result in an unauthorized change in Complainants’ telecommunications service. 14 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 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 See 47 C. F. R. § 64.1150( d). 14 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 04- 529 4 Nancy A. Stevenson, Acting Deputy Chief Policy Division Consumer & Governmental Affairs Bureau INFORMAL COMPLAINT 03- S82674 03- S83309 03- S85197 03- S85200 03- S85205 03- S85364 03- S85386 03- S85397 03- S85399 03- S85452 03- S85454 03- S85494 03- S85502 03- S85582 03- S85664 03- S85789 03- S85792 03- S85889 03- I0053127S APPENDIX A DATE OF COMPLAINT December 6, 2002 April 3, 2003 October 3, 2003 October 14, 2003 October 6, 2003 September 4, 2003 October 20, 2003 November 3, 2003 November 3, 2003 October 29, 2003 October 29, 2003 November 13, 2003 November 4, 2003 November 13, 2003 November 25, 2003 December 10, 2003 August 8, 2003 December 16, 2003 August 5, 2003 DATE OF CARRIER RESPONSE March 26, 2003 May 7, 2003 November 12, 2003 November 21, 2003 November 13, 2003 December 23, 2003 December 2, 2003 December 26, 2003 December 17, 2003 December 1, 2003 December 2, 2003 December 30, 2003 December 2, 2003 December 17, 2003 January 27, 2004 January 22, 2004 January 29, 2004 February 4, 2004 November 7, 2003 4 Federal Communications Commission DA 04- 529 5 03- I0062350S October 16, 2003 December 17, 2003 03- I0068730S 03- I0068770S 03- S000337S 04- S85911 October 27, 2003 October 24, 2003 October 22, 2003 January 8, 2004 December 17, 2003 December 22, 2003 December 17, 2003 February 3, 2004 5 Federal Communications Commission DA 04- 529 6 6