I
105TH CONGRESS
2D SESSION
H. R. 3888
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
MAY 14, 1998
Mr. TAUZIN (for himself, Mr. BASS, Mr. GOODLATTE, Mr. GILLMOR, Mr.
BURR of North Carolina, Mr. SKEEN, Mr. FRANKS of New Jersey, and
Mr. BACHUS) 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. SHORT TITLE.
This Act may be cited as the ‘‘Anti-slamming Amend-
ments Act’’.
TITLE I—SLAMMING
SEC. 101. 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 affirm that the subscriber is
authorized to select the provider of that
service for the telephone number in ques-
tion;
‘‘(ii) to acknowledge the type of serv-
ice to be changed as a result of the selec-
tion;
‘‘(iii) to affirm the subscriber’s intent
to select the provider as the provider of
that service;
‘‘(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 a complete copy of
verification of a change in telephone ex-
change service or telephone toll service pro-
vider in oral, written, or electronic form;
‘‘(iii) require the retention of such
verification in such manner and form and
for such time as the Commission considers
appropriate;
‘‘(iv) mandate that verification occur
in the same language as that in which the
change was solicited; and
‘‘(v) provide for verification to be
made available to a subscriber on request.
‘‘(3) ACTION BY UNAFFILIATED RESELLER NOT
IMPUTED TO CARRIER.—No telecommunications car-
rier may be found to be in violation of this section
solely on the basis of a violation of this section by
an unaffiliated reseller of that carrier’s services or
facilities.
‘‘(4) FREEZE OPTION PROTECTED.—The Com-
mission may not take action under this section to
limit or inhibit a subscriber’s ability to require that
any change in the subscriber’s choice of a provider
of interexchange service not be effected unless the
change is expressly and directly communicated by
the subscriber to the subscriber’s existing telephone
exchange service provider.
‘‘(5) APPLICATION TO WIRELESS.—This section
does not apply to a provider of commercial mobile
service.’’.
(b) LIABILITY
FOR CHARGES.—Subsection (b) of
such section is amended—
(1) 
by 
striking 
‘‘(b) 
LIABILITY
FOR
CHARGES.—Any telecommunications carrier’’ and
inserting the following:
‘‘(b) LIABILITY FOR CHARGES.—
‘‘(1) IN
GENERAL.—Any telecommunications
carrier or reseller of telecommunications services’’;
(2) by designating the second sentence as para-
graph (3) and inserting at the beginning of such
paragraph, as so designated, the following:
‘‘(3) CONSTRUCTION OF REMEDIES.—’’; and
(3) by inserting after paragraph (1), as des-
ignated by paragraph (1) of this subsection, the fol-
lowing:
‘‘(2) SUBSCRIBER PAYMENT OPTION.—
‘‘(A) IN
GENERAL.—A subscriber whose
telephone exchange service or telephone toll
service is changed in violation of the provisions
of this section, or the procedures prescribed
under subsection (a), may elect to pay the car-
rier or reseller previously selected by the sub-
scriber for any such service received after the
change in full satisfaction of amounts due from
the subscriber to the carrier or reseller provid-
ing such service after the change.
‘‘(B) PAYMENT RATE.—Payment for serv-
ice under subparagraph (A) shall be at the rate
for such service charged by the carrier or re-
seller previously selected by the subscriber con-
cerned.’’.
(c) 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 a specific and unambiguous 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 or reseller;
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 for a 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 not in excess of 120 days after the
telecommunications carrier or reseller receives
notice from the subscriber of the complaint. A
subscriber may at any time pursue such a com-
plaint with the Commission, in a State or local
administrative or judicial body, or elsewhere.
‘‘(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 and of the subscrib-
er’s rights and remedies under this section;
‘‘(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.—
‘‘(A) DETERMINATION
OF
VIOLATION.—
The Commission shall provide a simplified proc-
ess for resolving complaints under paragraph
(1)(B). The simplified procedure shall preclude
the use of interrogatories, depositions, discov-
ery, or other procedural techniques that might
unduly increase the expense, formality, and
time involved in the process. The Commission
shall determine whether there has been a viola-
tion of subsection (a) and shall issue a decision
or ruling at the earliest date practicable, but in
no event later than 150 days after the date on
which it received the complaint.
‘‘(B) DETERMINATION OF DAMAGES AND
PENALTIES.—If the Commission determines
that there has been a violation of subsection
(a), it shall issue a decision or ruling determin-
ing the amount of the damages and penalties
at the earliest practicable date, but in no event
later than 90 days after the date on which it
issued its decision or ruling under subpara-
graph (A).
‘‘(3) DAMAGES AWARDED BY COMMISSION.—If
a violation of subsection (a) is found by the Commis-
sion, the Commission may award damages equal to
the greater of $500 or the amount of actual dam-
ages for each violation. 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) CIVIL PENALTIES.—
‘‘(1) IN GENERAL.—Unless the Commission de-
termines that there are mitigating circumstances,
violation of subsection (a) is punishable by a forfeit-
ure of not less than $40,000 for the first offense,
and not less than $150,000 for each subsequent of-
fense.
‘‘(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 FORFEITURES.—The Commission
may take such action as may be necessary—
‘‘(1) to collect any forfeitures it imposes under
this section; and
‘‘(2) on behalf of any subscriber, to collect 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.’’.
(d) STATE RIGHT-OF-ACTION.—Section 258 of the
Communications Act of 1934 (47 U.S.C. 258), as amend-
ed by subsection (c), is amended by adding at the end
thereof the following:
‘‘(h) ACTIONS BY STATES.—
‘‘(1) IN GENERAL.—The attorney general of a
State, or an official or agency designated by a
State—
‘‘(A) may bring an action on behalf of its
residents to recover damages on their behalf
under subsection (d)(3); and
‘‘(B) may bring an action for the assess-
ment of civil penalties under subsection (e),
and for purposes of such an action, subsections
(d)(3) and (e)(1) shall be applied by substituting
‘the court’ for ‘the Commission’.
‘‘(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
actions brought under this section. When a State
brings an action under this section, the court in
which the action is brought has pendant jurisdiction
of any claim brought under the law of that State.
Upon proper application, such courts shall also have
jurisdiction to issue writs of mandamus, or orders
affording like relief, commanding the defendant to
comply with the provisions of this section or regula-
tions prescribed under this section, including the re-
quirement that the defendant take such action as is
necessary to remove the danger of such violation.
Upon a proper showing, a permanent or temporary
injunction or restraining order shall be granted with-
out 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.
‘‘(4) VENUE; SERVICE OF PROCESS.—Any civil
action brought under this subsection in a district
court of the United States may be brought in the
district wherein the subscriber or defendant is found
or is an inhabitant or transacts business or wherein
the violation occurred or is occurring, and process in
such cases may be served in any district in which
the defendant is an inhabitant or where the defend-
ant may be found.
‘‘(5) INVESTIGATORY
POWERS.—For purposes
of bringing any civil action under this subsection,
nothing in this section shall prevent the attorney
general of a State, or an official or agency des-
ignated by a State, from exercising the powers con-
ferred on the attorney general or such official by the
laws of such State to conduct investigations or to
administer oaths or affirmations or to compel the at-
tendance of witnesses or the production of documen-
tary and other evidence.
‘‘(i) STATE LAW NOT PREEMPTED.—
‘‘(1) IN GENERAL.—Nothing in this section or
in the regulations prescribed under this section shall
preempt any State law that imposes more restrictive
requirements, regulations, damages, costs, or pen-
alties on changes in a subscriber’s service or selec-
tion of a provider of telephone exchange service or
telephone toll services than are imposed under this
section.
‘‘(2) EFFECT
ON
STATE
COURT
PROCEED-
INGS.—Nothing contained in this section shall be
construed to prohibit an authorized State official
from proceeding in State court on the basis of an al-
leged violation of any general civil or criminal stat-
ute of such State or any specific civil or criminal
statute of such State not preempted by this section.
‘‘(3) LIMITATIONS.—Whenever a complaint is
pending before the Commission involving a violation
of regulations prescribed under this section, no State
may, during the pendency of such complaint, insti-
tute a civil action against any defendant party to the
complaint for any violation affecting the same sub-
scriber alleged in the complaint.
‘‘(j) REPORTS ON COMPLAINTS.—
‘‘(1) REPORTS REQUIRED.—Each telecommuni-
cations carrier or reseller shall submit to the Com-
mission, quarterly, a report on the number of com-
plaints of unauthorized changes in providers of tele-
phone exchange service or telephone toll service that
are submitted to the carrier or reseller by its sub-
scribers. Each report shall specify each provider of
service complained of and the number of complaints
relating to such provider.
‘‘(2) LIMITATION ON SCOPE.—The Commission
may not require any information in a report under
paragraph (1) other than the information specified
in the second sentence of that paragraph.
‘‘(3) UTILIZATION.—The Commission shall use
the information submitted in reports under para-
graph (1) to identify telecommunications carriers or
resellers that engage in patterns and practices of un-
authorized changes in providers of telephone ex-
change service or telephone toll service.
‘‘(k) DEFINITIONS.—For purposes of this section: