I
105TH CONGRESS
2D SESSION
H. R. 3749
To amend the Communications Act of 1934 to improve the protection of
consumers against ‘‘slamming’’ by telecommunications carriers, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 29, 1998
Mr. BASS (for himself and Mr. GOODLATTE) introduced the following bill;
which was referred to the Committee on Commerce
A BILL
To amend the Communications Act of 1934 to improve the
protection of consumers against ‘‘slamming’’ by tele-
communications carriers, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. IMPROVED PROTECTION FOR CONSUMERS.
(a) VERIFICATION OF AUTHORIZATION.—Subsection
(a) of section 258 of the Communications Act of 1934 (47
U.S.C. 258) is amended to read as follows:
‘‘(a) PROHIBITION.—
‘‘(1) IN
GENERAL.—No telecommunications
carrier or reseller of telecommunications services
shall submit or execute a change in a subscriber’s
selection of a provider of telephone exchange service
or telephone toll service except in accordance with
this section and such verification procedures as the
Commission shall prescribe.
‘‘(2) VERIFICATION.—
‘‘(A) IN GENERAL.—In order to verify a
subscriber’s selection of a telephone exchange
service or telephone toll service provider under
this section, the telecommunications carrier or
reseller shall, at a minimum, require the sub-
scriber—
‘‘(i) to acknowledge the type of service
to be changed as a result of the selection;
‘‘(ii) to affirm the subscriber’s intent
to select the provider as the provider of
that service;
‘‘(iii) to affirm that the consumer is
the subscriber or is authorized to select the
provider of that service for the telephone
number in question;
‘‘(iv) to acknowledge that the selection
of the provider will result in a change in
providers of that service; and
‘‘(v) to provide such other information
as the Commission considers appropriate
for the protection of the subscriber.
‘‘(B) ADDITIONAL
REQUIREMENTS.—The
procedures prescribed by the Commission to
verify a subscriber’s selection of a provider
shall—
‘‘(i) preclude the use of negative op-
tion marketing;
‘‘(ii) provide for verification of a
change in telephone exchange service or
telephone toll service provider in oral, writ-
ten, or electronic form; and
‘‘(iii) require the retention of such
verification in such manner and form and
for such time as the Commission considers
appropriate.
‘‘(3) INTRASTATE SERVICES.—Nothing in this
section shall preclude any State commission from en-
forcing such procedures with respect to intrastate
services.
‘‘(4) SECTION NOT TO APPLY TO WIRELESS.—
This section does not apply to a provider of commer-
cial mobile service, as that term is defined in section
332(d)(1) of this Act.’’.
(b) RESOLUTION OF COMPLAINTS.—Section 258 of
the Communications Act of 1934 (47 U.S.C. 258) is
amended by adding at the end thereof the following:
‘‘(c) NOTICE TO SUBSCRIBER.—Whenever there is a
change in a subscriber’s selection of a provider of tele-
phone exchange service or telephone toll service, the tele-
communications carrier or reseller selected shall notify the
subscriber in writing, not more than 15 days after the
change is processed by the telecommunications carrier or
the reseller—
‘‘(1) of the subscriber’s new carrier; and
‘‘(2) that the subscriber may request informa-
tion regarding the date on which the change was
agreed to and the name of the individual who au-
thorized the change.
‘‘(d) RESOLUTION OF COMPLAINTS.—
‘‘(1) PROMPT RESOLUTION.—
‘‘(A) IN GENERAL.—The Commission shall
prescribe a period of time, not in excess of 120
days after a telecommunications carrier or re-
seller receives notice, for the telecommuni-
cations carrier or reseller to resolve a complaint
by a subscriber concerning an unauthorized
change in the subscriber’s selection of a pro-
vider of telephone exchange service or telephone
toll service.
‘‘(B) UNRESOLVED
COMPLAINTS.—If a
telecommunications carrier or reseller fails to
resolve a complaint within the time period pre-
scribed by the Commission, then, within 10
days after the end of that period, the tele-
communications carrier or reseller shall—
‘‘(i) notify the subscriber in writing of
the subscriber’s right to file a complaint
with the Commission concerning the unre-
solved complaint, the subscriber’s rights
under this section, and all other remedies
available to the subscriber concerning un-
authorized changes;
‘‘(ii) inform the subscriber in writing
of the procedures prescribed by the Com-
mission for filing such a complaint; and
‘‘(iii) provide the subscriber a copy of
any evidence in the carrier’s or reseller’s
possession showing that the change in the
subscriber’s provider of telephone exchange
service or telephone toll service was sub-
mitted or executed in accordance with the
verification procedures prescribed under
subsection (a).
‘‘(2) RESOLUTION BY COMMISSION.—The Com-
mission shall provide a simplified process for resolv-
ing complaints under paragraph (1)(B). The sim-
plified procedure shall preclude the use of interrog-
atories, depositions, discovery, or other procedural
techniques that might unduly increase the expense,
formality, and time, involved in the process. The
Commission shall issue an order resolving any such
complaint at the earliest date practicable, but in no
event later than—
‘‘(A) 150 days after the date on which it
received the complaint, with respect to liability
issues; and
‘‘(B) 90 days after the date on which it re-
solves a complaint, with respect to damages
issues, if such additional time is necessary.
‘‘(3) DAMAGES AWARDED BY COMMISSION.—In
resolving a complaint under paragraph (1)(B), the
Commission may award damages equal to the great-
er of $500 or the amount of actual damages. The
Commission may, in its discretion, increase the
amount of the award to an amount equal to not
more than 3 times the amount available under the
preceding sentence.
‘‘(e) PENALTY.—
‘‘(1) IN GENERAL.—Unless the Commission de-
termines that there are mitigating circumstances,
violation of subsection (a) is punishable by a fine of
not less than $40,000 for the first offense, and not
less than $150,000 for each subsequent offense.
‘‘(2) FAILURE TO NOTIFY TREATED AS VIOLA-
TION OF SUBSECTION (a).—If a telecommunications
carrier or reseller fails to comply with the require-
ments of subsection (d)(1)(B), then that failure shall
be treated as a violation of subsection (a).
‘‘(f) RECOVERY OF FINES.—The Commission may
take such action as may be necessary—
‘‘(1) to collect any fines it imposes under this
section; and
‘‘(2) on behalf of any subscriber, any damages
awarded the subscriber under this section.
‘‘(g) CHANGE INCLUDES INITIAL SELECTION.—For
purposes of this section, the initiation of service to a sub-
scriber by a telecommunications carrier or a reseller shall
be treated as a change in a subscriber’s selection of a pro-
vider of telephone exchange service or telephone toll serv-
ice.’’.
(c) STATE RIGHT-OF-ACTION.—Section 258 of the
Communications Act of 1934 (47 U.S.C. 258), as amend-
ed by subsection (b), is amended by adding at the end
thereof the following:
‘‘(h) ACTIONS BY STATES.—
‘‘(1) AUTHORITY
OF
STATES.—Whenever the
attorney general of a State, or an official or agency
designated by a State, has reason to believe that a
telecommunications carrier or reseller has engaged
or is engaging in a pattern or practice of changing
telephone exchange service or telephone toll service
provider without authority from subscribers in that
State in violation of this section or the regulations
prescribed under this section, the State may bring a
civil action on behalf of its residents to enjoin such
unauthorized changes, an action to recover for ac-
tual monetary loss or receive $500 in damages for
each violation, or both such actions. If the court
finds the defendant willfully or knowingly violated
such regulations, the court may, in its discretion, in-
crease the amount of the award to an amount equal
to not more than 3 times the amount available
under the preceding sentence.
‘‘(2) EXCLUSIVE
JURISDICTION
OF
FEDERAL
COURTS.—The district courts of the United States,
the United States courts of any territory, and the
District Court of the United States for the District
of Columbia shall have exclusive jurisdiction over all
civil actions brought under this subsection. Upon
proper application, such courts shall also have juris-
diction to issue writs of mandamus, or orders afford-
ing like relief, commanding the defendant to comply
with the provisions of this section or regulations pre-
scribed under this section, including the requirement
that the defendant take such action as is necessary
to remove the danger of such violation. Upon a prop-
er showing, a permanent or temporary injunction or
restraining order shall be granted without bond.
‘‘(3) RIGHTS OF COMMISSION.—The State shall
serve prior written notice of any such civil action
upon the Commission and provide the Commission
with a copy of its complaint, except in any case
where such prior notice is not feasible, in which case
the State shall serve such notice immediately upon
instituting such action. The Commission shall have
the right—
‘‘(A) to intervene in the action;
‘‘(B) upon so intervening, to be heard on
all matters arising therein; and
‘‘(C) to file petitions for appeal.