Federal Communications Commission DA 19-245 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of Tele Circuit Network Corporation Complaints Regarding Unauthorized Change of Subscribers’ Telecommunications Carrier ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Complaint Nos. 1418012 1506567 1523876 1557038 1557193 1686612 1714894 1757133 1997793/1845261 2002243 2037228 2049963 2051254 2058169 2071906 2125218 2129292 2140282 2175375 2207685 2223296 2289012 2412711 2416415 2522894 2539119 2542517 2786639 ORDER Adopted: April 1, 2019 Released: April 2, 2019 By the Deputy Chief, Consumer Policy Division, Consumer and Governmental Affairs Bureau: 1. In this Order, we consider twenty-eight complaints See Appendix. alleging that Tele Circuit Network Corporation (Tele Circuit) 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 Tele Circuit’s actions violated the Commission’s carrier change rules, and we therefore grant Complainants’ complaints. 2. Section 258 of the Communications Act of 1934 (the Act), as amended, 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. 47 U.S.C. § 258(a). 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 id. § 64.1120(c). Section 64.1130 details the requirements for letter of agency form and content for written or electronically signed authorizations. Id. § 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 id. §§ 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 id. §§ 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, we notified Tele Circuit of the complaints. 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). Tele Circuit has failed to respond to the complaints. The failure of Tele Circuit to respond or provide proof of verification is presumed to be clear and convincing evidence of violations. See id. § 64.1150(d). Therefore, we find that Tele Circuit’s actions resulted in violations of our carrier change rules, and we discuss Tele Circuit’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. Tele Circuit 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 id. § 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 Tele Circuit may pursue any collection against Complainants for those charges. See id. § 64.1160(d). Any charges imposed by Tele Circuit on the Complainants for service provided after this 30-day period shall be paid by the Complainants to the authorized carrier at the rates the Complainants were paying the authorized carriers at the time of the unauthorized change of their telecommunications service provider. See id. § 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 Tele Circuit Network Corporation ARE GRANTED. 6. IT IS FURTHER ORDERED that, pursuant to Section 64.1170(d) of the Commission’s rules, 47 CFR § 64.1170(d), Complainants are entitled to absolution for the charges incurred during the first thirty days after the unauthorized change occurred and that Tele Circuit Network Corporation 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 1418012 1506567 1523876 1557038 1557193 1686612 1714894 1757133 1997793/1845261 2002243 2037228 2049963 2051254 2058169 2071906 2125218 2129292 2140282 2175375 2207685 2223296 2289012 2412711 2416415 2522894 2539119 2542517 2786639 January 26, 2017 March 15, 2017 March 24, 2017 April 10, 2017 April 10, 2017 June 6, 2017 June 20, 2017 July 5, 2017 August 11, 2017 October 24, 2017 November 9, 2017 January 23, 2018 November 16, 2017 November 20, 2017 November 27, 2017 December 20, 2017 December 22, 2017 January 2, 2018 January 17, 2018 February 1, 2018 February 8, 2018 March 8, 2018 April 28, 2018 May 1, 2018 May 25, 2018 June 2, 2018 June 4, 2018 September 20, 2018 August 7, 2017 March 16, 2017 November 27, 2017 April 18, 2017 April 25, 2017 August 10, 2017 August 10, 2017 August 11, 2017 October 20, 2017 February 1, 2018 January 30, 2018 January 23, 2018 January 22, 2018 November 21, 2017 December 1, 2017 December 22, 2017 December 22, 2017 January 22, 2018 January 18, 2018 February 15, 2018 February 15, 2018 April 20, 2018 April 30, 2018 May 4, 2018 May 29, 2018 August 16, 2018 June 8, 2018 September 27, 2018 4