Federal Communications Commission DA 18-646 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ILD Teleservices, Inc. Complaints Regarding Unauthorized Change of Subscribers’ Telecommunications Carrier ) ) ) ) ) ) ) ) Complaint Nos. 365448 1658952 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 complaintsSee Appendix. alleging that ILD Teleservices, Inc. (ILD) changed Complainants’ telecommunications service providers without obtaining authorization and verification from Complainants in violation of the Commission’s rules. See 47 CFR §§ 64.1100 – 64.1190. We conclude that ILD’s actions violated the Commission’s carrier change rules and we grant Complainants’ complaints. 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 Complainants’ complaints alleging that Complainants’ telecommunications service providers had been changed without Complainants’ authorization. See Appendix. 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 ILD of the complaints. ILD has failed to respond to the complaints. The failure of ILD to respond or provide proof of verification is presumed to be clear and convincing evidence of violations See 47 C.F.R. § 64.1150(d). Therefore, we find that ILD’s actions resulted in violations of our carrier change rules and we discuss ILD’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 actions may be necessary. 4. ILD must remove all charges incurred for service provided to Complainants 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 Complainants are entitled to absolution for the charges incurred during the first thirty days after the unauthorized change occurred and that neither the Complainants authorized carrier nor ILD may pursue any collection against Complainants for those charges. See 47 C.F.R. § 64.1160(d). Any charges imposed by ILD on the subscribers for service provided after this 30-day period shall be paid by the subscriber’s to the authorized carrier at the rates the subscribers were paying o 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 complaints against ILD Communications, ARE 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), Complainants are entitled to absolution for the charges incurred during the first thirty days after the unauthorized change occurred and ILD may not pursue any collection against Complainants 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 APPENDIX COMPLAINT NUMBER DATE OF COMPLAINT DATE OF CARRIER SERVE 365448 1658952 June 25, 2015 May 22, 2017 October 13, 2015 May 23, 2017 4