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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of AT&T Corporation Complaint Regarding Unauthorized Change of Subscriber's Telecommunications Carrier ) ) ) ) ) ) ) IC Nos. 01-S47282 01-S48579 01-S50996 ORDER Adopted: August 9, 2001 Released: August 10, 2001 By the Chief, Consumer Information Network Division, Consumer Information Bureau: 1. In this Order, we consider three complaints alleging that AT&T Corporation (AT&T) changed Complainants telecommunications service providers without obtaining authorization and verification from Complainants in violation of the Commission's rules. We conclude that AT&T has responded fully to the complaints and has taken appropriate action to resolve the complaints. 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). Section 258 prohibits the practice of "slamming," the submission or execution of an unauthorized change in a subscriber's selection of a provider of telephone exchange service or telephone toll service. 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. 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. 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. 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. Where the subscriber has paid charges to the unauthorized carrier, the Commission's 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. 4. We received Complainants' complaints alleging that Complainants' telecommunications service providers had been changed to AT&T without Complainants' authorization. Pursuant to section 1.719 and 64.1150 of our rules, we notified AT&T of the complaints and AT&T responded. AT&T states in its response that it has fully absolved Complainants of all charges assessed by AT&T in a manner consistent with the Commission's liability rules. Based on the information before us, we therefore find that the complaint referenced herein has been resolved. 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 Commission's rules, 47 C.F.R.  0.141, 0.361, 1.719, the complaints against AT&T Corporation 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 APPENDIX A IC NUMBER NAME OF DATE OF DATE OF COMPLAINANT COMPLAINT CARRIER RESPONSE IC No. 01-S47282 Karen Berg-Raftakis March 12, 2001 April 30, 2001 IC No. 01-S48579 Harriet Magid February 26, 2001 June 5, 2001 IC No. 01-S50996 Shawn C. Ailes April 3, 2001 June 5, 2001