Federal Communications Commission DA 19-383 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of TeleDias Communications, Inc. Complaints Regarding Unauthorized Change of Subscriber’s Telecommunications Carrier ) ) ) ) ) ) ) ) ) ) ) Complaint Nos. 83016 283360 289468 331163 355267 402687 410749 506087 582658 ORDER Adopted: May 3, 2019 Released: May 3, 2019 By the Deputy Chief, Consumer Policy Division, Consumer and Governmental Affairs Bureau: 1. In this Order, we consider nine complaints See Appendix. alleging that TeleDias Communications, Inc. (TeleDias) changed Complainants’ telecommunications service providers without obtaining authorization and verification from Complainants as required by the Commission’s rules. See 47 CFR §§ 64.1100 – 64.1190. We find that TeleDias’ actions violated the Commission’s carrier change rules, and we therefore grant Complainants’ complaints. 2. Section 258 of the Communications Act of 1934, as amended (the Act), 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 are 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 TeleDias 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). TeleDias responded, stating that it obtained authorization from Complainants through third-party verification (TPV). The evidence shows that TeleDias’ TPVs were apparently fabricated to mislead Complainants and regulatory officials into believing that it had verified the consumers’ authorization, when in fact TeleDias had not followed any of the Commission’s verification procedures set forth in Section 64.1120(c). See id. § 64.1120(c). See also OneLink Communications, Inc., et al, Notice of Apparent Liability for Forfeiture, 31 FCC Rcd 1403 (2016) (proposing a $7,660,000 forfeiture against TeleDias for, among other things, fabricating TPV recordings and slamming consumers). TeleDias has failed to produce clear and convincing evidence that it complied with the Commission’s verification procedures prior to submitting or executing requests to switch the Complainants’ long distance carriers. See United American Technologies, Complaint Regarding Unauthorized Change of Subscriber’s Telecommunications Carrier, Order, 23 FCC Rcd 6631, 6633, para. 4 (CGB 2008) (finding that because the TPV submitted by the carrier had been altered, the carrier failed to produce clear and convincing evidence that complainant authorized a carrier change). We therefore find that TeleDias’ actions were in violation of our carrier change rules, and we discuss TeleDias’ liability below. If any Complainant is unsatisfied with the resolution of the complaint, the Complainant may file a formal complaint with the Commission pursuant to Section 1.721 of the Commission’s rules, 47 CFR § 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 id. § 1.719. 4. TeleDias must remove all charges incurred for service provided to Complainants for the first thirty days after the alleged unauthorized changes 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 changes occurred and that neither the Complainants’ authorized carriers nor TeleDias may pursue any collection against Complainants for those charges. See id. § 64.1160(d). Any charges imposed by TeleDias on the subscribers for service provided after this 30-day period shall be paid by the subscribers at the rates the subscribers were paying to the authorized carriers at the time of the unauthorized changes. 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 filed against TeleDias Communications, Inc. ARE GRANTED. 6. IT IS FURTHER ORDERED that, pursuant to Section 64.1170(d) of the Commission’s rules, 47 CFR § 64.1170(d), the Complainants are entitled to absolution for the charges incurred during the first thirty days after the unauthorized changes occurred and that TeleDias Communications, Inc. 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 APPENDIX INFORMAL DATE OF DATE OF COMPLAINT COMPLAINT RESPONSE NUMBER 83016 January 14, 2015 February 12, 2015 283360 May 11, 2015 May 21, 2015 289468 May 14, 2015 May 22, 2015 331163 June 9, 2015 July 2, 2015 355267 June 22, 2015 July 1, 2015 402687 July 14, 2015 September 10, 2015 410749 July 17, 2015 July 27, 2015 506087 September 2, 2015 October 27, 2015 582658 October 10, 2015 October 20, 2015 4