Before the

Federal Communications Commission

Washington, DC 20554

In the Matter of )

)

Qwest Communications )

International, Inc. ) File No. ENF-99-11

)

Apparent Liability for Forfeiture ) NAL/Acct. No. 916EF008

)

**ORDER**

Adopted: July 19, 2000; Released: July 21, 2000

> By the Commission: Commissioner Furchtgott-Roth approving in part,
> dissenting in part and issuing a statement.

#  {#section .unnumbered}

1.  In this Order, we adopt a Consent Decree terminating an
    investigation regarding unauthorized primary interexchange carrier
    (PIC) conversions by Qwest Communications International, Inc.
    (Qwest).

2.  On October 19, 1999, the Commission issued to Qwest a Notice of
    Apparent Liability for Forfeiture (NAL). The Commission determined
    that Qwest had apparently violated section 258 of the Communications
    Act of 1934, as amended, 47 U.S.C. § 258, and Commission rules and
    orders by changing the PICs of 30 consumers without their
    authorization. After reviewing the facts and circumstances
    surrounding the alleged violations, the Commission found Qwest
    apparently liable for forfeiture in the amount of two million and
    eighty thousand dollars (\$2,080,000).

3.  The Commission staff and Qwest have negotiated the terms of a
    Consent Decree that would resolve this matter and the staff's
    investigation. A copy of the Consent Decree is attached and is
    incorporated by reference. As detailed in the Consent Decree, Qwest
    has agreed, among other things, to make a voluntary contribution to
    the U.S. Treasury in the amount of one million five hundred thousand
    dollars (\$1.5 million), and to strengthen its slamming compliance
    and monitoring policies.

4.  We have reviewed the terms of the Consent Decree and evaluated the
    facts before us. In light of Qwest's commitment to be bound by
    various principles regarding its verification and disciplinary
    procedures, its compensation plans, and other pro-consumer steps and
    commitments, we believe that the public interest will be served by
    approving the Consent Decree and terminating the investigation.

5.  Accordingly, IT IS ORDERED, pursuant to sections 4(i), 258 and
    503(b) of the Communications Act, 47 U.S.C. §§ 154(i), 258, and
    503(b) that the attached Consent Decree is ADOPTED.

6.  IT IS FURTHER ORDERED that the Secretary SHALL SIGN the Consent
    Decree on behalf of the Commission.

7.  IT IS FURTHER ORDERED that the above captioned case as well as the
    Commission staff inquiry into the matter described herein ARE
    TERMINATED.

    FEDERAL COMMUNICATIONS COMMISSION

    Magalie Roman Salas Secretary

**STATEMENT OF COMMISSIONER HAROLD FURCHTGOTT-ROTH**

**CONCURRING IN PART, DISSENTING IN PART**

*Re: Qwest Communications International, Inc., Apparent Liability for
Forfeiture*, Consent Decree and Order, File No. ENF-99-11, NAL/Acct. No.
916EF008.

I write separately to again express my uneasiness with the Commission's
use of consent decrees to extend our regulatory reach.[^1] While I fully
support the use of consent decrees as an effective way to bring closure
to enforcement proceedings, I urge my colleagues to reexamine the
Commission's consent decree philosophy. In my view decrees must adhere
to three tenets: (1) the terms of the consent decree must be directly
linked to the violations; (2) the Commission must be prepared to monitor
and enforce each provision of the decree; and (3) the resulting
regulatory obligations should not create excessive company-specific
regulation.

First, there must be a direct link between the terms of the consent
decree and the violation itself. While it is important to ensure that
carriers not engage in slamming, the Commission must not be tempted into
micromanaging business decisions of offending carriers. For example,
here our order requires Qwest to "withhold twenty percent of the
commission \[to distributors\] for at least sixty days to recover any
penalties and charges that may result from any unauthorized orders."[^2]
While it may be appropriate for the consent decree to require Qwest to
take steps to eliminate financial incentives for unauthorized orders,
and thus deter misconduct, it is not clear to me why the FCC is
mandating a hold back percentage or a 60-day period. There does not
appear to be any link between a 60-day hold period (as opposed to a 30-
or 45-day hold) and the alleged violations at issue. Therefore, I see no
basis for including these specific terms in the decree. On the other
hand, requiring an offending carrier to train its employees and agents
about our slamming rules and policies seems appropriate.[^3] However,
micromanaging the specifics of a licensee's hiring and firing is
not.[^4] I urge the Commission, therefore, to develop a "germaneness
test" to define the limits of what the Commission should undertake in
consent decrees.

Second, the Commission should not include provisions in consent decrees
that it cannot or, practically speaking, will not enforce. Today's Order
requires the Commission to monitor, among other things, advertising
campaigns, labor practices, employee pay-backs, and commission
"holdbacks."[^5] So, for example, Qwest, as part of a mandated media
campaign, must within 6 months "distribute brochures and place media
advertising for consumers who do not speak English as their primary
language, in their language of choice."[^6] Yet there are hundreds of
"languages of choice," so it is not at all clear what the full scope of
this obligation truly is. And how are we going to police this
obligation? Similarly, regarding the hold back provisions mentioned
above, are we really committed to monitoring and enforcing these
details? If Qwest decides that 30% for 90 days is more appropriate than
the 20% for 60 days provision, is Qwest really required to petition this
agency for "permission" to change this business practice? The consent
decree's provisions are well intentioned, but the scope of our
legally-binding obligations must be no broader than we are prepared to
monitor and enforce.

Third, a consent decree should not impose excessive carrier-specific
obligations, particularly on consumer protection issues. I believe
consumers should be able to look at our rules and regulations to easily
determine what their rights are vis-à-vis our licensees. By creating
extensive carrier-specific regulation -- either through consent decrees
or license transfer proceedings -- we undercut the ability of consumers
to know their rights. In fact, we virtually guarantee that consumers
will not know what obligations apply because it is simply impractical to
expect consumers to unearth these decrees from the various resting
places within the code to ascertain their rights. For example, the
consent decree requires Qwest to establish a "stay away" list of
customers who have stated that they would never do business with
Qwest.[^7] Yet we have detailed (and different) regulations restricting
telephone solicitation: in response to a consumer request, telephone
solicitors must place the consumer on a "do-not-call list" for a period
of ten years.[^8] Presumably our current rule adequately protects
consumers. Therefore, I would be inclined to reinforce our current
"do-not-call list" obligations on Qwest with additional reporting and
monitoring requirements. Moreover, in my view, any violation of these
rules during the consent decree period should be subject to particularly
harsh penalties. My approach achieves the Commission's basic goals, but
without adding to the extensive company-specific regulations already in
place.

In the end, consent decrees must punish the violation, establish an
explicit probationary period, and memorialize the licensee's commitment
to preventing recurrence of the violations. In turn, the FCC assures the
public that the licensee will be strictly monitored during the
probationary period and that the remedial provisions of the decree will
be vigorously enforced. Any additional violations during the
probationary period will be met with harsh penalties. Unfortunately, as
detailed above, our current consent decree philosophy goes far beyond
these fundamental principles.

For the foregoing reasons, I respectfully dissent in part.

Before the

Federal Communications Commission

Washington, D.C. 20554

In the Matter of )

)

Qwest Communications )

International Inc. ) File No. ENF-99-11

)

Apparent Liability for Forfeiture ) NAL/Acct. No. 916EF008

)

# CONSENT DECREE

1.  The Federal Communications Commission ("FCC" or "Commission") and
    Qwest Communications International Inc. ("Qwest") by their attorneys
    or authorized representatives, hereby enter into a Consent Decree
    terminating a Commission investigation concerning Qwest's alleged
    violations of Section 258 of the Communications Act of 1934, as
    amended, and the Commission's policies and rules regarding preferred
    interexchange and/or intraLATA carrier ("PIC") conversions. Qwest is
    a common carrier that provides interstate interexchange
    telecommunications services pursuant to tariffs on file with the
    Commission.

2.  On October 19, 1999, the Commission issued to Qwest a Notice of
    Apparent Liability for Forfeiture ("NAL").[^9] The Commission
    determined that Qwest had apparently violated section 258 and
    Commission rules and orders by changing the PICs of thirty consumers
    without their authorization. After reviewing the facts and
    circumstances surrounding the alleged violations, the Commission
    found Qwest apparently liable for forfeiture in the amount of two
    million and eighty thousand dollars (\$2,080,000). The Commission
    and Qwest thereafter entered into negotiations and have agreed to
    terminate this proceeding pursuant to the terms and conditions set
    forth herein.

3.  For the purposes of this Consent Decree the following definitions
    shall apply:

    a.  "Commission" or "FCC" means the Federal Communications
        Commission;

    b.  "Bureau" means the Enforcement Bureau of the Federal
        Communications Commission;

    c.  "Qwest" means Qwest Communications International, Inc. or any
        other affiliated entity, subsidiary, parent, successor or
        assign, controlling or controlled by Qwest Communications
        International, Inc. However, in the event that Qwest completes a
        merger with U S West, Inc., during the effectiveness of this
        decree, the term "Qwest" shall not include the local exchange
        operations of either U S West or any U S West affiliate
        providing local telecommunications services;

    d.  "Parties" means Qwest and the Commission;

    e.  "Adopting Order" means an Order of the Commission adopting the
        terms and conditions of this Consent Decree;

    f.  "Effective Date" means the date on which the Commission adopts
        the Adopting Order;

    g.  "PIC Change" means an Order or request transmitted by an
        interexchange carrier to a local exchange carrier requesting a
        change of a customer's preferred interexchange and/or intraLATA
        carrier;

    h.  "Letter of Agency" or "LOA" means a written authorization signed
        by the customer authorizing a PIC change;

    i.  "Informal Complaint" or "Consumer Complaint" means a complaint
        filed under 47 C.F.R. §§ 1.711-1.717;

    j.  "Distributor" means a third party entity engaging in
        face-to-face marketing or engaging in telemarketing of long
        distance telecommunications to consumers on behalf of Qwest.

    k.  "LEC" means local exchange carrier.

4.  The Parties agree that the provisions of this Consent Decree shall
    be subject to final approval by the Commission by incorporation of
    such provisions by reference in an Adopting Order of the Commission.

5.  The Parties agree that this Consent Decree shall become effective on
    the date on which the Adopting Order is released by the Commission
    and shall expire three (3) years after its effective date. Upon
    release, the Adopting Order and this Consent Decree shall have the
    same force and effect as any other order of the Commission, and any
    violation of the terms of this Consent Decree shall constitute a
    violation of a Commission Order entitling the Commission to exercise
    any and all rights and to seek any and all remedies authorized by
    law for the enforcement of a Commission Order.

6.  Qwest admits the jurisdiction of the Commission for purposes of this
    Consent Decree and any Adopting Order.

7.  Qwest waives any further procedural steps and any rights it may have
    to seek judicial review or otherwise challenge or contest the
    validity of the Adopting Order or this Consent Decree.

8.  Qwest waives any rights it may have under any provision of the Equal
    Access to Justice Act, 5 U.S.C. § 504.

9.  This Consent Decree shall constitute a final settlement between
    Qwest and the Commission of the above-captioned NAL proceeding and
    any proceeding based on allegations of unauthorized PIC changes
    occurring on or before the effective date of this Consent Decree;
    provided, however, that this Consent Decree is not dispositive
    of (1) the rights of any complainant who has filed (or should file)
    a formal or informal complaint against Qwest or (2) any matter(s)
    within the jurisdiction of any other federal or state agency.

10. This Consent Decree is for settlement purposes only. Nothing herein
    shall constitute findings as to the matters raised in the NAL, and
    Qwest does not admit any alleged violation or liability for the
    specific acts described in the NAL or in any informal complaints
    received by the Commission on or before the effective date of this
    Consent Decree.

11. Qwest shall make a voluntary contribution to the United States
    Treasury in the total amount of \$1,500,000 (one million five
    hundred thousand dollars). Payment shall be paid within 30 days of
    the effective date of this Consent Decree. Payment shall be made,
    without further protest or recourse, by check or money order drawn
    to the order of the Federal Communications Commission, shall reflect
    \"FCC File No. ENF-99-11, NAL/Acct. No. 916EF008", and shall be
    mailed to the Forfeiture Collection Section, Finance Branch, Federal
    Communications Commission, P.O. Box 73482, Chicago, Illinois
    60673-7482.

12. Qwest shall not knowingly submit to any LEC any preferred carrier
    change request unless Qwest has complied with all Commission rules
    and orders concerning preferred interexchange and/or intraLATA
    carrier changes, in effect, or as they may be hereafter modified or
    amended.

13. As of the effective date of the Order adopting the Consent Decree,
    Qwest shall verify all consumer PIC change requests obtained through
    a signed LOA during face-to-face marketing according to the
    procedures set forth in 47 C.F.R. § 64.1150 (c) or (d). Consistent
    with Paragraph 28 of this Decree, Qwest shall comply with all valid
    and effective rules adopted in CC Docket 94-158, or any other
    Commission docket regarding verification of all other sales. Qwest
    will revise its third party verification process to require that any
    customer confirming a residential sale, without undue prompting or
    suggestion by the third-party verifier, state his or her name and
    the telephone number(s) for which the preferred carrier is to be
    changed.

14. Within 30 days from the Effective Date, Qwest shall distribute to
    all its distributors a copy of its updated Anti-Slamming Advisory, a
    copy of which is attached hereto. Qwest shall provide training to
    all new distributors regarding federal and state prohibitions
    against unauthorized PIC changes, and shall conduct annual
    "refresher" training to all distributors. In addition, Qwest shall
    require every sales representative involved in any way in the
    marketing of Qwest service to review and sign an anti-slamming
    advisory, at least once every six months, acknowledging their
    understanding of its requirements and verifying their intent to
    comply. If Qwest determines that any individual has forged a
    customer's signature on an LOA or has committed other willful
    violations of the Commission's rules, the offending individual will
    be immediately terminated and permanently barred from soliciting
    orders for Qwest. Qwest will continue to police other violations of
    its policies and the FCC's rules, and will require remedial measures
    up to and including termination for individuals and/or distributors
    that submit a specified number of improper PIC-change customer
    orders.

15. Within 30 days of the Effective Date, Qwest shall implement
    procedures to monitor the performance of distributors regarding
    submission of PIC-change orders, to identify distributors that
    submit unauthorized PIC changes to Qwest, and to promptly reduce
    such improper PIC-change customer orders and discipline such
    distributors.

    a.  If the distributor demonstrates any pattern or practice of
        violating federal PIC-change rules and orders, such conduct
        shall subject the distributor to immediate termination of its
        relationship with Qwest.

    b.  If the number of improper PIC change orders submitted by a
        distributor during any calendar month exceeds 2 percent of the
        total number of PIC-change orders submitted by the distributor
        during the month, Qwest will implement remedial measures
        designed to improve the distributor's performance. For purposes
        of this paragraph, an order shall be deemed to be an "improper
        PIC change order" if, within 14 days after notice to Qwest of a
        dispute by the consumer, (1) Qwest cannot produce evidence of an
        signed LOA and/or a record of TPV that complies with the
        provisions of this Consent Decree, or (2) the LOA or TPV is
        forged or otherwise fraudulent. Remedial measures shall, at a
        minimum, include:

        1.  mandatory retraining by Qwest of the distributor's sales
            personnel which will focus on proper sales techniques and
            methods to reduce rejected orders;

        2.  the distributor's implementation of specific changes
            designed to reduce the incidence of bad orders;

        3.  the distributor's reaffirmation and re-signing of Qwest's
            Anti-Slamming Advisory;

        4.  the distributor's performance of a self-audit on a monthly
            or weekly basis as necessary under the circumstances.

        5.  The charge-back of all commissions or fees earned for each
            improper PIC change plus a financial penalty equal to at
            least fifty percent (50%) of any commissions or fees earned
            for each order.

            Upon entering into any distributor contract, and within 30
            days of the effective date of this Consent Decree for
            existing contracts, Qwest shall require its distributors to
            sign an agreement with Qwest specifying that any of the
            distributor's employees found to have engaged in practices
            that violate the effective federal PIC-change rules and
            orders shall be subject to disciplinary action up to and
            including immediate termination. Qwest will not rehire any
            employee or agent who has been terminated by Qwest or its
            distributors for violating the federal PIC-change rules and
            orders.

            Qwest agrees that in the event it pays an up-front
            commission to distributors for accounts switched to Qwest,
            it shall withhold twenty percent (20%) of the commission for
            at least 60 days to recover any penalties and charges that
            may result from any unauthorized orders. Such holdback
            procedures will allow the customer to receive the first bill
            and contact Qwest if the customer did not authorized the
            PIC-change. If a distributor has at least one year of
            continuous performance without exceeding the threshold
            described in paragraph 15(b), Qwest may, in its discretion,
            pay up-front commissions without regard to the holdback
            described in this paragraph, *provided, however,* that if,
            at any time thereafter, the distributor exceeds the
            threshold described in paragraph 15(b), Qwest shall hold
            back up-front commissions as described above. Qwest will
            review its holdback procedures on a quarterly basis to
            ensure that the amounts withheld are adequate.

            Qwest agrees that new distributors will be screened to
            ensure that they meet Qwest's standards for quality and
            reputability and have not engaged in slamming or other
            improper sales activities. Qwest will place all distributors
            that begin submitting orders on or after the Effective Date
            on a probationary status for the first 90 days of the
            relationship. During this probationary period, Qwest will
            conduct performance reviews to ensure the distributor meets
            acceptable standards of performance. If, during this
            probationary period, the number of improper PIC change
            orders submitted by the distributor during any calendar
            month exceeds 2 percent of the total number of PIC-change
            orders submitted by the distributor during the month, Qwest
            will immediate terminate its relationship with the
            distributor. For purposes of this paragraph, the term
            "improper PIC change orders" shall have the meaning defined
            in paragraph 15(b) above. In addition, during the
            probationary period, new distributors shall receive up-front
            commissions from Qwest in accordance with paragraph 17
            above.

16. Qwest shall inspect each LOA prior to submitting an order to the
    LEC. All incomplete LOAs *(e.g.* missing signature, telephone
    number, or other required information) will be returned to the
    distributor without being processed.

17. Qwest shall maintain a "stay away" list of customers who have
    either (1) claimed an unauthorized switch in the past or (2)
    expressed their intent never to purchase Qwest's services. Qwest
    will verify orders against this list before submitting a PIC change
    to a LEC. Customers will remain on the stay away list for a minimum
    of one year, unless they request to be removed from the list. As of
    the effective date, Qwest will initiate a review of all complaints
    alleging unauthorized preferred carrier changes by Qwest, which it
    received within the twelve months prior to the effective date from a
    state agency, a federal agency, or from a consumer directly, based
    on any record in Qwest's custody. In all cases where Qwest concludes
    that an unauthorized preferred carrier change occurred, it will
    promptly issue a credit for all preferred carrier change fees and to
    have all calls subject to the switched services rerated to the prior
    carrier's rates. Consistent with Paragraph 28 of this Decree, at
    such time as the Commission\'s slamming liability rules in Docket
    94-129 become effective, Qwest will ensure that its consumer credit
    practices comply with them. At six-month intervals, the Company will
    submit reports to the Commission detailing the number of PIC
    disputes received, the number of credits issued, and the total
    dollar amount of any credits issued. For purposes of these reports,
    Qwest shall include all written disputes forwarded by the FCC, a
    state commission or agency, a LEC, or from a consumer directly.

18. Qwest shall take any necessary steps to monitor and ensure that, in
    connection with the advertising, promotion, marketing, offering for
    sale or sale of interstate, interexchange and/or intraLATA
    telecommunications services, all individuals or entities which are
    in any way involved in the marketing of Qwest's services to
    consumers shall comply with paragraphs 12, 13 and 14 of this Consent
    Decree. Qwest shall demand prompt remedial action (including but not
    limited to, disciplining or terminating responsible individuals, and
    terminating or recovering commissions or surcharges paid to a
    distributor) against any individual or entity that is submitting, or
    has submitted in the past, requests for unauthorized PIC changes, or
    is not in compliance with paragraphs 12, 13 and 14 of this Consent
    Decree.

19. Qwest shall engage an independent auditor on an annual basis to
    conduct an examination of its reporting and data tracking mechanisms
    and the enforcement procedures based upon those reports. This
    examination will be supervised by persons licensed to provide public
    accounting services and shall be conducted in accordance with the
    relevant standards of the AICPA. The independent auditor shall
    provide an opinion (with exceptions, if any, noted) in a written
    report to the Board of Directors of Qwest. Qwest also will require
    its distributors to report, on at least a quarterly basis, the
    results of an internal audit of its anti-slamming procedures.

20. Qwest shall devise and implement a nationwide campaign to inform
    consumers who do not speak English as their primary language of the
    dangers of slamming and their rights in the event their preferred
    carrier has been changed without authorization. Qwest will
    distribute brochures and place media advertising for consumers who
    do not speak English as their primary language, in their language of
    choice. Qwest agrees to bear the cost of all media advertising
    and/or consumer brochures in support of this nationwide campaign and
    that the campaign will be completed within 6 months of the Effective
    Date.

21. During the effectiveness of this Consent Decree, and for a period of
    three years thereafter, Qwest shall maintain and make available to
    the Commission or Bureau, within 14 days of the receipt of a written
    request from the Commission or Bureau, business records
    demonstrating compliance with the terms and provisions of this
    Consent Decree, including, but not limited to, advertisements, sales
    scripts, manuals or presentations, written advisories to sales
    distributors and agents and required responses to those advisories,
    Letters of Agency, PIC-change records, billing records, and all
    consumer complaints including those filed directly with Qwest and
    those filed against Qwest in any local, state, or federal
    jurisdiction served or otherwise submitted to Qwest. The record of
    consumer complaints shall include the name, address, and telephone
    number of each complainant, Qwest's response, and the final
    disposition of each complaint. Nothing in this Consent Decree shall
    limit Qwest's right to claim that the information requested is
    non-releasable proprietary information under the Freedom of
    Information Act, 5 U.S.C. § 522(b) and/or the Trade Secrets Act, 18
    U.S.C. § 1905. The Commission agrees to allow Qwest an opportunity
    to establish such claims in accordance with the Commission's rules
    at 47 C.F.R. §§ 0.457, 0.459.

22. Qwest represents that it has satisfied the complaints filed with the
    Commission by the thirty consumers that gave rise to the
    Commission's NAL.[^10]

23. The Commission further agrees that in the absence of substantial
    additional and material facts, it shall not on its own motion
    institute forfeiture proceedings against Qwest based on informal
    complaints of unauthorized PIC changes occurring before the
    effective date of this Consent Decree. The Commission will serve on
    Qwest consumer complaints concerning alleged unauthorized switches
    occurring prior to the effective date, in accordance with the
    procedures and rules governing such complaints. Qwest agrees to
    resolve these complaints to the extent required by the
    Communications Act and the Commission's rules and regulations.
    Nothing in this Consent Decree shall prevent the Commission from
    adjudicating formal complaints filed against Qwest, or from
    instituting a new investigation or enforcement proceedings against
    Qwest in the event of future misconduct.

24. In light of the covenants and representations contained in this
    Consent Decree, and in express reliance thereon, the Commission
    agrees that adoption of this Consent Decree shall serve to resolve
    all allegations that are the subject of the NAL issued in the
    above-captioned proceeding without any finding of ultimate liability
    on the part of Qwest. The Commission further agrees that in the
    absence of substantial additional and material facts, the Commission
    shall not on its own motion institute against Qwest new proceedings
    of any kind arising out of the PIC changes and consumers that were
    the subject of the NAL.

25. The Parties agree that any provision of the Consent Decree, except
    for the provisions concerning additional independent third party
    verifications of signed LOAs, affected by or inconsistent with any
    subsequent rule or order adopted by the Commission, will be
    superseded by such Commission rule or order.

26. This Consent Decree may be signed in counterparts.

For the Federal Communications Commission For Qwest Communications
International Inc.

[/s/ Magalie Roman Salas]{.underline} [/s/ R. Steven Davis]{.underline}

Magalie Roman Salas R. Steven Davis

Secretary Senior Vice President

[*7*/20/00]{.underline} [6/22/00]{.underline}

Date Date

**"QWEST'S POLICIES AND PROCEDURES**

**REGARDING SLAMMING PREVENTION"**

**ADVISORY TO ALL REPRESENTATIVES SELLING QWEST COMMUNICATION
CORPORATION'S SERVICES:**

Unauthorized switching of long distance service, or "slamming," is the
number one problem facing the long distance industry today. Slamming is
illegal, harmful to consumers, and will not be tolerated by Qwest. Qwest
offers its customers the highest quality, reliability and value in the
industry. These attributes are more than enough to attract customers,
and a sales representative should never resort to fraud, deceit or
trickery to generate sales.

The following document is designed to educate every person involved in
the sale or marketing of Qwest's long distance services about the causes
of unauthorized switches, Qwest's zero tolerance for such switches, and
what can be done to prevent unauthorized switching. [ALL REPRESENTATIVES
AND DISTRIBUTORS SELLING QWEST LONG DISTANCE SERVICE MUST CAREFULLY READ
THIS ADVISORY AND MUST READ AND SIGN THE ZERO SLAMMING PLEDGE ATTACHED
TO THIS DOCUMENT.]{.underline} A signed Zero Slamming Pledge must be
forwarded to Qwest before any individual begins marketing services on
behalf of Qwest and must be re-affirmed at least every 6 months
thereafter.

**A. COMMON CAUSES of Slamming**:

-   Incorrect telephone number submitted on the Letter of Authorization
    or "LOA" - means that incorrect telephone number is switched without
    the customer's written consent.

-   The submitted LOA is illegible and causes the person that keys the
    order into the system to enter the wrong name and/or phone number.

-   The person who \"authorized\" switching carriers really didn\'t have
    the authority to make the switch. Sometimes children, roommates,
    receptionists, secretaries or assistants authorize a switch to
    qualify for some sort of premium or other inducement even though
    they lack the authority to make decisions on behalf of the
    subscriber.

-   A simple misunderstanding when one partner doesn\'t tell the other
    partner or accounts payable personnel about selecting a new long
    distance service. This is especially common when the person
    authorizing the switch is not the person who reviews or pays the
    bills. The bill-paying partner or accounts payable representative
    sees a new long distance carrier name and thinks something is wrong.
    Please ask your customers to inform the appropriate persons within
    the household or company about the change in long distance carriers.

-   Signing someone up just to \"get the sale\" or reach a qualification
    or commission level. Laziness and "cutting corners" can lead to
    mistakes, misunderstandings and improper orders. **Sales agents
    should note that forging the signature of another person is illegal
    and grounds for immediate dismissal.**

-   Signing someone up, without the customer's knowledge, as a result of
    spending a lot of time with a decision-maker and assuming that the
    person would be satisfied with Qwest service.

    **B. Effects of Slamming:**

-   It is illegal and will not be tolerated by Qwest!

-   Creates a bad image and adversely affects Qwest's and the Sales
    Agent/Distributor's reputation.

-   Frustrating experience for the subscriber that was slammed.

-   Takes time to investigate and correct.

-   If we can get information verified (correct), it will save on:

    1\. Order rejects

    2\. Returned mail

    3\. Time to process valid and accurate orders.

-   Substantial monetary penalties and costs are assessed against Qwest
    when a subscriber is improperly switched. These charges are passed
    back by Qwest to the distributor and/or individual sales agent
    involved, and all commissions earned on the account will be
    forfeited. Repeated slamming activity leads to serious consequences
    for the agent, including termination of the sales agent relationship
    with Qwest.

    [QWEST AS WELL AS FEDERAL, STATE, AND LOCAL REGULATORY AGENCIES VIEW
    \"SLAMMING\" AS A VERY SERIOUS PROBLEM. THE FCC AND STATES ROUTINELY
    IMPOSE SIGNIFICANT FINES ON A PER VIOLATION BASIS.]{.underline}

    **C. How A Representative/distributor can protect against**

    **slamming:**

-   You are strongly encouraged to verify information against each new
    customer's actual telephone bill for each LOA.

-   You must make sure that the person signing the LOA is a person with
    authority to make decisions for the telephone line(s) to be
    switched. It is essential that the person signing the LOA has
    authority to change long distance carriers. Note that children,
    roommates, receptionists, secretaries and assistants typically do
    not have the authority to change long distance carriers for the
    subscriber or company. If the person signing the LOA is different
    from the person with the actual authority to do so, you should
    attempt to contact the other person. While this policy might
    jeopardize some sales orders, it should give you a chance to retain
    sales by demonstrating your concern and professionalism.

-   Where possible in face to face sales situations, verify the person's
    identity and signature against a valid, government-issued ID, such
    as a driver's license. Note: this procedure is MANDATORY in certain
    states.

-   Take your time. Review the LOA for accuracy and legibility,
    especially the telephone number. Confirm the person\'s telephone
    number.

-   Never sign someone else\'s name on an LOA or any other document!
    Forgery will get you fired.

-   Don\'t force a sale that is not there.

**[ZERO SLAMMING PLEDGE]{.underline}**

> **\*\*\*\*\* THIS FORM MUST BE SIGNED AND RETURNED BY EVERY INDIVIDUAL
> MARKETING QWEST SERVICES \*\*\*\*\***

This will verify that I have received, read, understand, and will comply
with the document entitled "QWEST'S POLICIES AND PROCEDURES REGARDING
SLAMMING PREVENTION". I fully understand and appreciate my obligations
as a Qwest sales agent or independent contractor not to engage in or
facilitate the practice of "slamming" customers. I pledge that I will
not submit an order to change long distance service to Qwest unless it
has been fully and knowingly authorized by the subscriber and has been
verified in accordance with Qwest's policies and procedures, as they may
be modified from time to time. I understand that Qwest will not tolerate
occurrences of \"slamming\", and that Qwest will take whatever actions
are necessary to protect against slamming including, without limitation,
termination of the sales agent relationship and enforcement of all
applicable legal rights and remedies. I understand that instances of
forgeries or willful violations of applicable rules will result in my
immediate termination and a permanent ban on soliciting services on
behalf of Qwest.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Signature Of Representative Selling Qwest Long Distance

Date\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Print Name

Home Phone Number\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Print Name of Company

Channel Code \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Organization Code \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**[DISTRIBUTOR'S ACKNOWLEDGMENT]{.underline}**

**[AND AGREEMENT NOT TO ENGAGE IN SLAMMING]{.underline}**

This will verify that on behalf of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, I
have received, read, understand, and will distribute the document
entitled "QWEST'S POLICIES AND PROCEDURES REGARDING SLAMMING PREVENTION"
to all individuals responsible for selling Qwest Communications
Corporation's Service. We fully understand and appreciate our
obligations as a Qwest sales agent not to engage in or facilitate the
practice of "slamming" customers. We pledge that we will not submit an
order to change long distance service to Qwest unless it has been fully
and knowingly authorized by the subscriber and has been verified in
accordance with Qwest's policies and procedures, as they may be modified
from time to time. We understand that Qwest will not tolerate
occurrences of \"slamming\", and that Qwest will take whatever actions
are necessary to protect against slamming including, without limitation,
termination of the sales agent relationship and enforcement of all
applicable legal rights and remedies.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Signature Of Representative Date

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Print Name

Business Phone Number \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Print Name of Company

Channel Code \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Organization Code \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Please remit this form within fourteen days of receipt to: Qwest
Communications Corporation., 4650 Lakehurst Court, Dublin, Ohio 43016,
Attn: Legal Dept.

Signature Of Representative for
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

[^1]: *See Statement Of Commissioner Harold Furchtgott-Roth, Concurring
    In Part, Dissenting In Part*, *Re: MCI Worldcom Communications,
    Inc.*, Consent Decree and Order, File No. EB-00-TC-055, NAL/Acct.
    No. X3217-008 (rel. June 6, 2000).

[^2]: *Qwest Communications International, Inc., Apparent Liability for
    Forfeiture*, Consent Decree and Order, File No. ENF-99-11, NAL/Acct.
    No. 916EF008, ¶ 16 (rel. July XX, 2000).

[^3]: *See Qwest Consent Decree* ¶ 14.

[^4]: *See id*. at ¶¶ 14-15.

[^5]: *See* *id*. at ¶¶ 23, 14-17.

[^6]: *See id*. at ¶ 23. It is also not clear how effective such a
    campaign would be at resolving the apparent underlying problem. If,
    in response to a record of violations, the goal is to prevent
    language barriers from facilitating slamming, then bilingual
    operators provide a much more direct answer to this problem.

[^7]: *See id*. at ¶ 20. These rules also apply to customers who have
    accused Qwest of slamming.

[^8]: *See* 47 C.F.R. § 64.1200.

[^9]: Qwest Communications International Inc., Notice of Apparent
    Liability for Forfeiture, FCC 99-299 (Oct. 19, 1999).

[^10]: See Qwest Communications International Inc. Response to Notice of
    Apparent Liability for Forfeiture, File No. ENF-99-11, NAL/Acct. No.
    916EF008, dated November 18, 1999.