NEWSReport No. CC 96-21             COMMON CARRIER ACTION          December 17, 1996

               COMMON CARRIER BUREAU FINDS TWO COMPANIES 
              APPARENTLY LIABLE FOR FORFEITURE FOR SLAMMING

     Today the Common Carrier Bureau issued two Notices of Apparent Liability ("NALs")
for alleged violations of the Commission's "slamming" rules.  The Bureau's action was
directed at two companies, Long Distance Services, Inc. (LDSI) and a separate entity with the
same name located in Michigan, Long Distance Services, Inc., (LDS, Inc.).  The Bureau
found each company liable for forfeiture penalties for violating Commission rules and orders
concerning changes to consumers' long distance carriers.

     Under Commission rules, changes in a consumers long distance service by another 
long distance carrier must be confirmed by a document known as a Letter of Agency
("LOA"), which is signed by the customer to authorize the change.  The Bureau noted that if
carriers rely on LOA's to change a consumer's long distance service that the carrier must
ensure that the authorization has been validated by the consumer.

     The Bureau's action against LDSI today generated from consumers who alleged that
they did not authorize changing their long distance service to LDSI.  Based on an
investigation by the Enforcement Division, the Bureau found no similarities between the
signature on the LOA authorizing the changes and the signature on the consumer complaint
submitted to the Commission. The Bureau assessed a forfeiture of $80,000 for the violations.

     In the case involving LDS, Inc., the Bureau received two complainants from
consumers who alleged that they did not authorize a change in service to LDS, Inc.  The
Bureau found in the first case that the LOA authorizing the change in long distance service
used by LDS, Inc. did not bear a valid signature or address.  A second consumer admitted to 
entering a raffle by completing an entry form to win a prize, but claimed that he did not sign
an LOA to authorize a change in his long distance service.  The Bureau found that the LOA
in question violated Commission rules regarding proper LOA form and content.  The Bureau
issued an NAL for $40,000 for the unauthorized conversion and $40,000 for the violation of
proper LOA form and content, for a total of $80,000.

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     In both actions announced today, the Common Carrier Bureau found that each carrier
in question apparently violated the Commission's "slamming" rules by substituting itself as the
long distance carrier for a consumer without that consumer's authorization.  The practice of
changing a consumer's long distance carrier without authorization is commonly known as
"slamming."  Last year, the Commission implemented new rules to better protect consumers
from the practice of "slamming".  The Common Carrier Bureau's Enforcement Division
investigates consumer complaints and takes action against responsible carriers.  

     Actions by the Chief, Common Carrier Bureau, December 17, 1996, by Notices of
Apparent Liability (DA 96-2101, DA 96-2102). 


  -FCC-

News media contact:  Jodie Buenning (202)418-1500
Common Carrier Bureau contact:  Kathie Kneff at (202) 632-7553 or Kaylene Shannon at
(202) 418-0960.