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    FOR IMMEDIATE RELEASE:             NEWS MEDIA CONTACT: 
  April 13, 2000                          Mike Balmoris at (202) 418-0253
                                     Email:    mbalmori@fcc.gov
  
  
 FEDERAL COMMUNICATIONS COMMISSION TAKES FURTHER STEPS TO TAKE
  PROFIT OUT OF THE ILLEGAL PRACTICE OF TELEPHONE "SLAMMING" 
                              
  Washington, D.C.   Today, the Federal Communications Commission (FCC)
  adopted tougher rules to combat the illegal practice of slamming.  Slamming, the single
  largest source of complaints to the Commission over the last several years, is the
  unauthorized change of a consumer's preferred telephone company.  The Commission
  decided that state regulatory commissions are better equipped than the industry to resolve
  slamming disputes and directed that those disputes be brought before state commissions,
  or the FCC in cases where a state has not elected to administer these rules.  The rules
  adopted today also require slamming carriers to pay out 150% of all payments received
  from consumers.  
  
  In this order, the Commission accepts the proposal of state regulatory
  commissions that they, and not the industry, resolve slamming disputes.  Previously, the
  Commission had delayed the effective date of the liability rules to permit the industry to
  reach consensus on a plan to have an independent third party administrator resolve
  slamming disputes and administer the liability rules.  However, such a consensus was
  never reached.  Over thirty-five state commissions came forward to express their
  willingness to take the lead in administering anti-slamming rules, and the Commission
  accepted their proposal.
  
  Additionally, today's action reaffirmed that, where the consumer has not paid the
  slammer, the consumer is absolved of the obligation to pay for service for up to thirty
  days after being slammed.  However, for those cases where the consumer has paid the
  slamming carrier, the Commission modified the applicable liability rules.  Under the new
  rules, a slammer is obligated to pay to the authorized carrier 150% of the charges it
  received from the consumer.  The authorized carrier will, in turn, reimburse the consumer
  50% of the charges the consumer paid to the slammer.  Thus, the Commission increased
  penalties for slamming and increased the incentives for authorized carriers to go after
  slammers, while ensuring that consumers receive compensation.  
  
                        --  more  --
                              
  
  
  Court Stay Summary
  Today's order is a reconsideration of the anti-slamming rules that the Commission
  adopted in 1998.  Those rules included the following:
  
       1.   Strengthening the liability rules to take the profit out of slamming by absolving
       consumers of 30 days of slamming charges.
       2.   Strengthening the procedures by which carriers must obtain customer verification
       of preferred carrier change requests.
       3.   Broadening the scope of these verification procedures to apply to local as well as
       long distance carriers.
       4.   Establishing rules governing preferred carrier freezes, which prohibit carriers
       from changing a consumer's preferred carrier without that consumer's express
       authorization to "lift the freeze."
  
  In May 1999, the U.S. Court of Appeals for the D.C. Circuit stayed the liability
  rules at the request of MCI WorldCom.  
  
  The Commission believes that today's actions, particularly the decision to have
  the states resolve slamming disputes and the modification of the re-rating rules, should
  remove any concern that may have prompted the court to impose a stay, and will ensure
  that consumers are fully protected from slamming.
  
  Action by the Commission April 13, 2000, by First Order on Reconsideration
  (FCC No. 00-135).  Chairman Kennard, Commissioners Ness, Powell and Tristani, with
  Commissioner Furchtgott-Roth approving in part and dissenting in part.
  
  CC Docket No. 94-129
  
                           -FCC-
  
  Common Carrier Bureau contact:  Michele Walters at (202) 418-7400
  
  
News about the Federal Communications Commission can also be found
         on the Commission's web site www.fcc.gov.