Federal Communications Commission DA 19-263 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. 264374 590205 673693 831790 860277 884831 991483 1071309 1070166 1227246 1376081 1512375 2378918 ORDER Adopted: April 8, 2019 Released: April 8, 2019 By the Deputy Chief, Consumer Policy Division, Consumer and Governmental Affairs Bureau: 1. In this Order, we consider thirteen 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 responded to the complaints, stating that it had obtained authorization from the Complainants. However, Tele Circuit failed to provide any proof of authorization, including a third party verification (TPV) recording. In two of the cases, Tele Circuit did not even assert that it had obtained authorization from the Complainants. Instead, in response to one complaint, Tele Circuit stated only that the consumer was connected to Tele Circuit but did not report any issues with the service. See Tele Circuit Response to Informal Complaint No. 831790. In response to another complaint, Tele Circuit simply said the consumer was no longer connected to Tele Circuit and that she had a zero balance. See Tele Circuit Response to Informal Complaint No. 2378918. Tele Circuit provided no proof of authorization for the carrier change in either case. The failure of Tele Circuit to provide proof of verified authorization is presumed to be clear and convincing evidence of violations. See 47 CFR § 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 these proceedings 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 carriers 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 Stevenson Deputy Chief Consumer Policy Division Consumer & Governmental Affairs Bureau 3 APPENDIX COMPLAINT NUMBER DATE OF COMPLAINT DATE OF CARRIER RESPONSE 264374 590205 673693 831790 860277 884831 991483 1071309 1070166 1227246 1376081 1512375 2378918 April 29, 2016 October 14, 2015 November 23, 2015 February 24, 2016 March 11, 2016 March 30, 2016 May 20, 2016 July 6, 2016 July 6, 2016 September 29, 2016 January 2, 2017 March 8, 2017 April 5, 2018 January 4, 2016 December 15, 2015 January 25, 2016 June 22, 2016 June 22, 2016 August 15, 2016 September 28, 2016 September 28, 2016 September 28, 2016 November 28, 2016 April 20, 2017 April 27, 2017 April 18, 2018