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 NEWS  News  media  Information  202  /  418-  0500  TTY  202  /  418-  2555  Fax-  On-  Demand  202  /  418-  2830  Internet:  http://  www.  fcc.  gov  ftp.  fcc.  gov  Federal  Communications  Commission  445  12  th  Street,  S.  W.  Washington,  D.  C.  20554  This  is  an  unofficial  announcement  of  Commission  action.  Release  of  the  full  text  of  a  Commission  order  constitutes  official  action.  See  MCI  v.  FCC.  515  F  2d  385  (D.  C.  Circ  1974). 
 FOR  IMMEDIATE  RELEASE:  NEWS  MEDIA  CONTACT: 
 July  21,  2000  Mike  Balmoris  at  (202)  418-  0253 
 Email:  mbalmori@  fcc.  gov 


 FEDERAL  COMMUNICATIONS  COMMISSION  RESOLVES  SEVERAL 
 PENDING  TELEPHONE  SLAMMING  ISSUES 


 The  Internet  Can  Now  Be  Used  as  a  Valid  Authorization  and  Verification  Method  for 
 Consumers  to  Change  Their  Preferred  Telephone  Company 


 Washington,  D.  C.  –  Today,  the  Federal  Communications  Commission  (FCC) 
 adopted  rules  designed  to  improve  the  process  for  consumers  to  choose  their  preferred 
 telephone  carrier,  while  making  it  more  difficult  for  unscrupulous  carriers  to  continue  the 
 illegal  practice  of  telephone  slamming.  Section  258  of  the  Telecommunications  Act  of  1996 
 makes  it  unlawful  for  any  telecommunications  carrier  to  change  a  consumer’s  telephone 
 carrier  except  in  accordance  with  the  Commission's  verification  procedures.  Any  carrier  that 
 violates  these  procedures  is  liable  to  the  subscriber's  authorized  carrier  for  all  charges 
 collected. 


 With  today’s  action,  the  Commission  resolved  the  vast  majority  of  the  remaining 
 open  slamming  issues.  Also,  combined  with  a  recent  court  decision  lifting  the  stay  on  the 
 Commission’s  liability  rules,  this  action  brings  the  Commission’s  anti-  slamming  rules  to 
 full  force. 


 With  the  Commission’s  adoption  of  today’s  Third  Report  and  Order  and  Second 
 Order  on  Reconsideration,  the  Commission  is  permitting  preferred  carrier  changes  to  be 
 conducted  electronically  through  the  use  of  Internet  Letters  of  Agency  (LOAs).  Internet 
 LOAs  must  comply  with  all  current  Commission  authorization  and  verification 
 requirements,  and  consumers  must  have  the  option  of  using  alternative  authorization  and 
 verification  methods,  such  as  written  LOAs  or  independent  third  party  verification. 


 Additionally,  with  today’s  action,  the  Commission: 
 ƒ  Addresses  the  problem  of  “soft  slamming”  by  facilitating  the  independent 
 use  of  Carrier  Identification  Codes  (CICs)  by  switchless  resellers.  CICs  are 
 numeric  codes  that  enable  local  phone  companies  to  identify  a  consumer’s 
 preferred  long  distance  carrier. 


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 ƒ  Refines  its  independent  third  party  verification  process  to  ensure  its 
 independence,  efficiency,  and  consistency. 


 ƒ  Adopts  a  definition  of  the  term  “subscriber”  that  will  protect  customers  of 
 record  by  giving  them  control  over  who  is  authorized  to  change  their  carrier 
 of  choice. 


 ƒ  To  assist  its  enforcement  efforts,  requires  each  carrier  to  submit  a  bi-  annual 
 report  on  the  number  of  slamming  complaints  it  receives. 


 ƒ  Adopts  streamlined  carrier  registration  requirements  that  prevent  slammers 
 from  escaping  detection  simply  by  changing  their  names. 


 Today’s  Order  also  contains  a  Second  Order  on  Reconsideration,  in  which  the 
 Commission,  among  other  things,  upholds  its  rules  governing  the  submission  of  preferred 
 carrier  freeze  orders,  reaffirms  its  decision  not  to  preempt  state  regulations  governing 
 verification  procedures  for  preferred  carrier  change  requests  that  are  consistent  with  the 
 provisions  of  Section  258,  and  adopts  a  60-  day  limit  on  the  amount  of  time  an  LOA 
 confirming  a  carrier  change  request  should  be  considered  valid. 


 Background  on  Slamming  In  December  1998,  the  Commission  established  a  comprehensive  framework 
 designed  to  close  loopholes  used  by  carriers  who  slam  consumers  and  to  bolster  certain 
 aspects  of  its  slamming  rules  to  increase  their  deterrent  effect.  In  particular,  the 
 Commission  adopted  aggressive  new  liability  rules  designed  to  take  the  profit  out  of 
 slamming.  The  Commission  also  broadened  the  scope  of  its  slamming  rules  to  encompass 
 all  carriers  and  imposed  more  rigorous  verification  measures. 


 In  May  2000,  the  Commission  amended  certain  aspects  of  the  slamming  liability 
 rules.  The  Order  addressed  only  those  issues  relating  to  the  Commission’s  liability  rules, 
 which  had  been  stayed  by  the  D.  C.  Circuit  the  prior  year.  With  today’s  action,  the 
 Commission  adopts  a  number  of  proposals  discussed  in  the  Further  Notice  of  Proposed 
 Rulemaking  released  with  the  December  1999  Order,  and  also  addresses  the  remaining 
 issues  that  were  raised  on  reconsideration. 


 Action  by  the  Commission  July  20,  2000,  by  Third  Report  and  Order  and 
 Second  Order  on  Reconsideration  (FCC  00-  255).  Chairman  Kennard  and 
 Commissioners  Ness,  Furchtgott-  Roth,  Powell  and  Tristani. 


 CC  Docket  No.  94-  129 
 -FCC-Common 
 Carrier  Bureau  Contacts: 
 Michele  Walters  or  Dana  Walton-  Bradford  at  202-  418-  7400 


 News  about  the  Federal  Communications  Commission  can  also  be  found 
 on  the  Commission’s  web  site  www.  fcc.  gov. 
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