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 Federal  Communications  Commission  DA  01-  1668 
 Before  the 
 Federal  Communications  Commission 
 Washington,  D.  C.  20554 


 In  the  Matter  of 
 AT&  T  Corporation 
 Complaint  Regarding 
 Unauthorized  Change  of 
 Subscribers  Telecommunications  Carrier 


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 IC  No.  01-  S52010 


 ORDER 
 Adopted:  July  12,  2001  Released:  July  13,  2001 
 By  the  Chief,  Consumer  Information  Network  Division,  Consumer  Information  Bureau: 
 1.  In  this  Order,  we  consider  the  complaint  filed  by  Andres  Hark  (Complainant)  1 
 alleging  that  AT&  T  Corporation  (AT&  T)  changed  Complainants  long  distance  service  without 
 obtaining  authorization  and  verification  from  Complainant  in  violation  of  the  Commissions  rules.  2 
 We  conclude  that  AT&  T  has  responded  fully  to  the  Complainants  complaint  and  has  taken 
 appropriate  action  to  resolve  the  complaint. 


 2.  In  December  1998,  the  Commission  released  the  Section  258  Order  in  which  it 
 adopted  rules  to  implement  section  258  of  the  Communications  Act  of  1934  (Act),  as  amended  by 
 the  Telecommunications  Act  of  1996  (1996  Act).  3  Section  258  prohibits  the  practice  of 
 slamming,  the  submission  or  execution  of  an  unauthorized  change  in  a  subscribers  selection  of 


 1  Andres  Hark,  Informal  Complaint  No.  IC-  S52010  (filed  May  11,  2001). 
 2  See  47  C.  F.  R.    64.1100    64.1190. 
 3  47  U.  S.  C.    258(  a);  Telecommunications  Act  of  1996,  Pub.  L.  No.  104-  104,  110  Stat.  56 
 (1996);  Implementation  of  the  Subscriber  Carrier  Selection  Changes  Provisions  of  the  Telecommunications  Act 
 of  1996;  Policies  and  Rules  Concerning  Unauthorized  Changes  of  Consumers  Long  Distance  Carriers,  CC 
 Docket  No.  94-  129,  Second  Report  and  Order  and  Further  Notice  of  Proposed  Rule  Making,  14  FCC  Rcd  1508 
 (1998)  (Section  258  Order),  stayed  in  part,  MCI  WorldCom  v.  FCC,  No.  99-  1125  (D.  C.  Cir.  May  18,  1999);  First 
 Order  on  Reconsideration,  15  FCC  Rcd  8158  (2000);  stay  lifted,  MCI  WorldCom  v.  FCC,  No.  99-  1125  (D.  C.  Cir. 
 June  27,  2000);  Third  Report  and  Order  and  Second  Order  on  Reconsideration,  15  FCC  Rcd  15996  (2000), 
 Errata,  DA  No.  00-  2163  (rel.  Sept.  25,  2000),  Erratum,  DA  No.  00-  2192  (rel.  Oct.  4,  2000),  Order,  FCC  01-  67 
 (rel.  Feb.  22,  2001);  reconsideration  pending.  Prior  to  the  adoption  of  section  258,  the  Commission  had  taken 
 various  steps  to  address  the  slamming  problem.  See,  e.  g.,  Policies  and  Rules  Concerning  Unauthorized  Changes 
 of  Consumers'  Long  Distance  Carriers,  CC  Docket  No.  94-  129,  Report  and  Order,  10  FCC  Rcd  9560  (1995), 
 stayed  in  part,  11  FCC  Rcd  856  (1995);  Policies  and  Rules  Concerning  Changing  Long  Distance  Carriers,  CC 
 Docket  No.  91-  64,  7  FCC  Rcd  1038  (1992),  reconsideration  denied,  8  FCC  Rcd  3215  (1993);  Investigation  of 
 Access  and  Divestiture  Related  Tariffs,  CC  Docket  No.  83-  1145,  Phase  I,  101  F.  C.  C.  2d  911,  101  F.  C.  C.  2d  935, 
 reconsideration  denied,  102  F.  C.  C.  2d  503  (1985). 
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 Federal  Communications  Commission  DA  01-  1668 
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 a  provider  of  telephone  exchange  service  or  telephone  toll  service.  4  In  the  Section  258  Order,  the 
 Commission  adopted  aggressive  new  rules  designed  to  take  the  profit  out  of  slamming,  broadened 
 the  scope  of  the  slamming  rules  to  encompass  all  carriers,  and  modified  its  existing  requirements 
 for  the  authorization  and  verification  of  preferred  carrier  changes.  The  rules  require,  among  other 
 things,  that  a  carrier  receive  individual  subscriber  consent  before  a  carrier  change  may  occur.  5 
 Pursuant  to  section  258,  carriers  are  absolutely  barred  from  changing  a  customer's  preferred  local 
 or  long  distance  carrier  without  first  complying  with  one  of  the  Commission's  verification 
 procedures.  6  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  authorization;  (2) 
 obtain  confirmation  from  the  subscriber  via  a  toll-  free  number  provided  exclusively  for  the 
 purpose  of  confirming  orders  electronically;  or  (3)  utilize  an  independent  third  party  to  verify  the 
 subscriber's  order.  7 


 3.  The  Commission  also  has  adopted  liability  rules.  These  rules  require  the  carrier  to 
 absolve  the  subscriber  where  the  subscriber  has  not  paid  his  or  her  bill.  In  that  context,  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.  8  Where  the  subscriber  has  paid  charges  to  the  unauthorized 
 carrier,  the  Commissions  rules  require  that  the  unauthorized  carrier  pay  150%  of  those  charges 
 to  the  authorized  carrier,  and  the  authorized  carrier  shall  refund  or  credit  to  the  subscriber  50%  of 
 all  charges  paid  by  the  subscriber  to  the  unauthorized  carrier.  9 


 4.  We  received  Complainants  complaint  on  May  11,  2001  alleging  that 
 Complainants  long  distance  service  had  been  changed  from  Sprint  Communications  Company 
 L.  P.,  (Sprint)  to  AT&  T  without  Complainants  authorization.  Pursuant  to  section  1.719  and 
 64.1150  of  our  rules,  10  we  notified  AT&  T  of  the  complaint  and  AT&  T  responded  on 
 June  7,  2001.  11  AT&  T  has  fully  absolved  Complainant  of  all  charges  assessed  by  AT&  T  in  a 


 4  47  U.  S.  C.    258(  a). 
 5  See  47  C.  F.  R.    64.1120. 
 6  47  U.  S.  C.    258(  a). 


 7  See  47  C.  F.  R.    64.1120(  c).  Section  64.1130  details  the  requirements  for  letter  of  agency  form 
 and  content  for  written  or  electronically  signed  authorizations.  47  C.  F.  R.    64.1130. 
 8  See  47  C.  F.  R.    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. 


 9  See  47  C.  F.  R.    64.1140,  64.1170. 


 10  47  C.  F.  R.    1.719  (Commission  procedure  for  informal  complaints  filed  pursuant  to  section  258 
 of  the  Act);  47  C.  F.  R.    64.1150  (procedures  for  resolution  of  unauthorized  changes  in  preferred 
 carrier). 


 11  AT&  T  Corporation  Response  to  Informal  Complaint  No.  IC-  S52010,  (received  June  7,  2001). 
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 manner  consistent  with  the  Commissions  liability  rules.  12  Based  on  the  information  before  us,  we 
 therefore  find  that  the  complaint  referenced  herein  has  been  resolved.  13 


 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  Commissions  rules,  47  C.  F.  R.    0.141,  0.361,  1.719,  the  complaint  filed  by  Andres  Hark 
 against  AT&  T  IS  RESOLVED. 


 6.  IT  IS  FURTHER  ORDERED  that  this  Order  is  effective  upon  release. 


 FEDERAL  COMMUNICATIONS  COMMISSION 


 Jack  L.  Forsythe,  Chief 
 Consumer  Information  Network  Division 
 Consumer  Information  Bureau 


 12  See  47  C.  F.  R.    64.1160. 
 13  If  Complainant  is  unsatisfied  with  the  resolution  of  this  complaint,  Complainant  may  file  a 
 formal  complaint  with  the  Commission  pursuant  to  section  1.721  of  Commissions  rules,  47  C.  F.  R.    1.721. 
 Such  filing  will  be  deemed  to  relate  back  to  the  filing  date  of  Complainants  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  47  C.  F.  R.    1.719. 
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