Federal Communications Commission DA 18-643 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of TeleUno, Inc. Complaints Regarding Unauthorized Change of Subscribers’ Telecommunications Carrier ) ) ) ) ) ) ) ) Complaint No. 353553 ORDER Adopted: June 20, 2018 Released: June 21, 2018 By the Deputy Chief, Consumer Policy Division, Consumer & Governmental Affairs Bureau: 1. In this Order, we consider the complaint Complaint No. 353553, filed June 20, 2015. alleging that TeleUno, Inc. (TeleUno) changed Complainant’s telecommunications service provider without obtaining authorization and verification from Complainant in violation of the Commission’s rules. See 47 CFR §§ 64.1100 – 64.1190. We conclude that TeleUno’s actions violated the Commission’s carrier change rules and we grant Complainant’s complaint. 2. Section 258 of the Communications Act of 1934 (Act), as amended by the Telecommunications Act of 1996 (1996 Act), 47 U.S.C. § 258(a). 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. Id. The Commission’s implementing rules require, among other things, that a carrier receive individual subscriber consent before a carrier change may occur. See 47 CFR § 64.1120. 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; (2) obtain confirmation from the subscriber via a toll-free number provided exclusively for the purpose of confirming orders electronically; or (3) utilize an appropriately qualified independent third party to verify the subscriber's order. See 47 CFR § 64.1120(c). Section 64.1130 details the requirements for letter of agency form and content for written or electronically signed authorizations. 47 CFR § 64.1130. The Commission also has adopted rules to limit the liability of subscribers when a carrier change occurs, and to require carriers involved in slamming practices to compensate subscribers whose carriers were changed without authorization. These rules require the carrier to absolve the subscriber where the subscriber has not paid his or her bill. 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. See 47 CFR §§ 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. Where the subscriber has paid charges to the unauthorized carrier, the Commission’s rules require that the unauthorized carrier pay 150 percent of those charges to the authorized carrier, and the authorized carrier shall refund or credit to the subscriber 50 percent of all charges paid by the subscriber to the unauthorized carrier. See 47 CFR §§ 64.1140, 64.1170. 3. We received Complainant’s complaint on June 20, 205, alleging that Complainant’s telecommunications service provider had been changed without Complainant’s authorization. Notice of Informal Complaint No 353553 was electronically sent on June 20, 2015. Pursuant to Sections 1.719 and 64.1150 of our rules, 47 CFR § 1.719 (Commission procedure for informal complaints filed pursuant to Section 258 of the Act); id. § 64.1150 (procedures for resolution of unauthorized changes in preferred carrier). we notified TeleUno of the complaint. TeleUno has failed to respond to the complaint. The failure of TeleUno to respond or provide proof of verification is presumed to be clear and convincing evidence of a violation See 47 C.F.R. § 64.1150(d). Therefore, we find that TeleUno’s actions resulted in a violation of our carrier change rules and we discuss TeleUno’s liability below. If any Complainant is unsatisfied with the resolution of its complaint, such Complainant may file a formal complaint with the Commission pursuant to Section 1.721 of the Commission’s rules. Id. § 1.721. Such filing will be deemed to relate back to the filing date of such 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 such Complainant. See id. § 1.719. We also will forward a copy of the record of this proceeding to our Enforcement Bureau to determine what additional action may be necessary. 4. TeleUno must remove all charges incurred for service provided to Complainant for the first thirty days after the alleged unauthorized change in accordance with the Commission’s liability rules. See 47 C.F.R. § 64.1160(b). We have determined that Complainant are entitled to absolution for the charges incurred during the first thirty days after the unauthorized change occurred and that neither the Complainant authorized carrier not TeleUno may pursue any collection against Complainant for those charges. See 47 C.F.R. § 64.1160(d). Any charges imposed by TeleUno on the subscribers for service provided after this 30-day period shall be paid by the subscribers to the authorized carrier at the rates the subscribers were paying to the authorized carriers at the time of unauthorized change of telecommunications service provider. See 47 C.F.R. § 64.1140, 64.1160. 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 CFR §§ 0.141, 0.361, 1.719, the complaint against TeleUno Communications, IS GRANTED. 6. IT IS FURTHER ORDERED that, pursuant to Section 64.1170(d) of the Commission’s rules, 47 C.F.R. § 64.1170(d), Complainant are entitled to absolution for the charges incurred during the first thirty days after the unauthorized change occurred and TeleUno may not pursue any collection against Complainant for those charges. 7. IT IS FURTHER ORDERED that this Order is effective upon release. FEDERAL COMMUNICATIONS COMMISSION Nancy A. Stevenson Deputy Chief Consumer Policy Division Consumer and Governmental Affairs Bureau 3