FOR IMMEDIATE RELEASE NEWS MEDIA CONTACT: October 19, 1999 Mike Balmoris at (202) 418- 0253 Email: mbalmori@fcc.gov FCC PROPOSES $2 MILLION FINE FOR LONG DISTANCE PHONE PROVIDER QWEST COMMUNICATIONS FOR SLAMMING Forged Signatures Among Violations Found Washington, D.C. -- The Federal Communications Commission (FCC) today issued a Notice of Apparent Liability against Qwest Communications International, Inc. (Qwest), for apparent violations of the Commission's rules against slamming and proposed a forfeiture of $2,080,000. Slamming is the illegal practice of switching consumers' preferred telephone carriers without their consent. Qwest has 30 days to pay the forfeiture or show why the forfeiture should be reduced or not imposed. This proposed forfeiture is based upon the complaints of 30 consumers who claimed they had been switched to Qwest without their consent. Twenty-two of these complaints apparently involve forged or otherwise falsified letters of authorization to switch service. Deceased Dog Boris "Switched" Provider One of the complainants asserts that Qwest switched his preferred long distance service on the basis of an authorization "signed" in the name of his deceased dog, Boris. For privacy reasons, this subscriber had chosen to list his number in his dog's name in the local telephone directory. In another instance, the complainant alleges that the authorization letter provided by Qwest was purportedly signed by her husband, who had been deceased for eight years. The Commission proposed forfeitures of $80,000 for each of the 22 complaints alleging forged authorizations in light of their egregious nature. In the remaining eight complaints, the Commission found that Qwest apparently switched the complainants' preferred long distance carrier without proper authorization. In four of these cases, Qwest failed to provide any evidence to demonstrate that it had verified the consumers' authorization before ordering a carrier switch, as required by the Commission's slamming rules. The Commission proposed forfeitures of $40,000 for each of these apparent slamming violations. Number of Slamming Complaints The complaints forming the basis of this action involve allegations of slamming by both Qwest and by LCI International Telecom Corp, (LCI), which was acquired by Qwest in October 1998. Between September 1, 1998 and August 31, 1999, the Commission's Common Carrier Bureau processed 637 written consumer complaints alleging slamming by Qwest, and 551 written complaints alleging slamming by LCI. During the same period, the Commission's National Call Center received 1,142 consumer calls regarding unauthorized changes by Qwest and 218 regarding such changes by LCI. Slamming continues to be the Commission's largest area of telephone-related complaints. During the past year, the Commission has proposed nearly $13 million in forfeitures in connection with this fraudulent practice. The Commission also adopted in December, 1998 aggressive new rules to deter slamming, including requirements that would absolve consumers from having to pay some charges incurred after being slammed. These liability provisions, however, have been stayed by the Court of Appeals. Action by the Commission October 15, 199, by Notice of Apparent Liability for Forfeiture (FCC 99-299). Chairman Kennard, Commissioners Ness, Furchtgott-Roth, Powell and Tristani. File No. ENF-99-11 -FCC- Common Carrier Contact: Glenn Reynolds at (202) 418-0960. TTY: (202) 418-2555