September 1995
"Slamming" is a term used to describe any practice that changes a consumer's long distance carrier without the customer's knowledge or consent. The Federal Communications Commission's policies and rules prohibit slamming and the Commission enforces these policies and rules through investigation of individual complaints and patterns of slamming practices.
Customers have the right to use any long distance carrier they choose and to change carriers whenever they wish. Slamming takes choices away from consumers, often without their knowledge, and distorts the long distance competitive market by rewarding companies that engage in deceptive and misleading marketing practices. It is important for customers to select their own long distance company because different companies charge different rates.
In June, 1995, the FCC adopted additional rules to protect consumers from slamming. The FCC adopted these rules in response to thousands of complaints it received and the tens of thousands of complaints received annually by local exchange carriers and state regulatory bodies.
FCC rules require a long distance company to obtain a customer's authorization in order to change his or her long distance service. One method of obtaining this authorization is by a Letter of Agency (LOA), provided by a long distance company, in which the customer indicates, in writing, that he or she wishes to switch long distance companies.
Many consumers have complained to the Commission about confusing LOAs that were combined with promotional inducements, such as contest entries, prize giveaways and actual checks, which are designed to attract new customers. Recipients of these LOAs often were unaware that by signing the document to enter the contest, to claim the prizes, or to cash the check, they also were "authorizing" a change in their long distance company.
The FCC's new rules protect consumers without limiting their choices or unduly restricting the means that long distance companies use to reach consumers.
The FCC's new rules require that LOAs, the forms authorizing a change in long distance carrier, be separate or severable from inducements such as prizes and contests. The LOA provided by the carrier must be limited strictly to authorizing a change in long distance carrier and it must be clearly identified as a LOA authorizing the change.
Further, the LOA must include: the subscriber's billing name and address and each telephone number to be covered by the order to change the subscriber's long distance company; a statement that the subscriber intends to change from his or her current long distance company to this new company; a statement that the subscriber designates this new carrier to act as the agent for this change; and a statement that the subscriber understands that there may be a charge for this change.
The LOA must be written in clear and unambiguous language and the print must be of sufficient size and readable style, generally comparable in type style and size to the promotional materials, and must make clear to the consumer that the document, when signed, would change his or her long distance carrier. Only the name of the long distance carrier setting the consumer's rates can appear on the letter of authorization. The LOA must contain full translations if it uses more than one language. The same rules apply to letters of agency sent to businesses.
Advertising promotions that use "checks" are exempt from the separate or severable requirement but must meet specific guidelines. Such a check must contain the required letter of agency language and the necessary information to make it a negotiable instrument, and shall not contain any other promotional language or material. The carriers must place the required letter of agency language near the signature line on the back of the check. In addition, the carriers must print on the front of the check, in easily readable, bold-faced type, a notice that the consumer is authorizing a change in his or her long distance carrier.
The Commission's policies also protect consumers who receive higher bills as a result of being slammed. These consumers will be required to pay only the toll charges they would have paid to the original long distance carrier.
The FCC has specific rules that govern customer orders for long distance service generated by telemarketing. Before a long distance company can place an order to switch a customer who agreed to sign up in a telemarketing call, that company must use one of the following methods to verify that the customer authorized the switch:
If you experience telephone slamming, follow these steps;
There is no special form to fill out to file a complaint with the FCC. Simply send a letter, in your own words, to the address below. Your complaint letter should include:
Send your complaint to:
Federal Communications Commission
Common Carrier Bureau
Enforcement Division
Informal Complaints and Public Inquiries Branch
Mail Stop Code 1600A2
2025 M St., NW
Washington, DC 20554