Federal Communications Commission DA 19-391 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of Silv Communications, Inc. Complaints Regarding Unauthorized Change of Subscriber’s Telecommunications Carrier ) ) ) ) ) ) ) Complaint Nos. 573064 2151992 2159390 ORDER Adopted: May 6, 2019 Released: May 6, 2019 By the Deputy Chief, Consumer Policy Division, Consumer and Governmental Affairs Bureau: 1. In this Order, we consider three complaints See Appendix. alleging that Silv Communications, Inc. (Silv) 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 Silv’s 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 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. Pursuant to Sections 1.719 and 64.1150 of our rules, we notified Silv of the complaints. Id. § 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). Silv responded to the complaints, stating that it obtained authorization from Complainants through third-party verification (TPV). See Appendix. 4. We have reviewed the TPVs and find that they are not intelligible. The verifiers’ speech is so rapid as to be extremely difficult to understand and, in many places, completely indecipherable. We find that Silv did not provide clear and convincing evidence of an authorized carrier change. See Reduced Rate Long Distance, Complaint Regarding Unauthorized Change of Subscriber’s Telecommunications Carrier, Order, 23 FCC Rcd 11492, 11494, para. 4 (CGB 2008) (finding that the TPV was not intelligible and therefore the carrier had not provided clear and convincing evidence of a valid authorized carrier change). Therefore, we find that Silv’s actions were in violation of our carrier change rules, and we discuss Silv’s 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 the 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 the Complainant. See id. § 1.719. 5. Silv 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 Silv may pursue any collection against Complainants for those charges. See id. § 64.1160(d). Any charges imposed by Silv 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 change. See id. §§ 64.1140, 64.1160. 6. 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 Silv Communications, Inc. ARE GRANTED. 7. 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 change occurred and that Silv Communications, Inc. may not pursue any collection against Complainants for those charges. 8. IT IS FURTHER ORDERED that this Order is effective upon release. FEDERAL COMMUNICATIONS COMMISSION APPENDIX INFORMAL DATE OF DATE OF COMPLAINT COMPLAINT RESPONSE NUMBER 573064 October 6, 2015 October 14, 2015 2151992 January 8, 2018 January 15, 2018 2159390 January 10, 2018 January 19, 2018 4