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This is an unofficial announcement of Commission Action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC. 516 F 2d 385 (D.C. Circ 1974)

December 7, 2000
John Winston (202) 418-7450

FCC Imposes $750,000 Fine against Coleman Enterprises, Inc. d/b/a Local Long Distance, Inc. For Slamming Consumers

Washington, D.C. - Today the Federal Communications Commission (Commission) released an order imposing a $750,000 fine on Coleman Enterprises, Inc., d/b/a Local Long Distance, Inc. (LLD) for violation of the Commission's rules against slamming. Slamming is the illegal practice of switching consumers' preferred long distance or other telephone service providers without their consent.

The Commission received hundreds of written consumer complaints against LLD during an eleven-month period. Several complaints alleged that LLD's telemarketers misrepresented to the consumers that LLD offered a bill consolidation service, without revealing that agreeing to the service would result in their preferred service provider being changed to LLD. Those consumers denied that they had authorized LLD to become their long distance service provider and LLD submitted no proof to the contrary.

In its forfeiture order, the Commission rejected several defenses asserted by LLD, finding that LLD had violated the statute and the Commission's anti-slamming rules for the 14 consumer complaints at issue. After reviewing LLD's pertinent financial information, the Commission found LLD liable for a fine in the amount of $750,000.

Coleman Enterprises, Inc., d/b/a/ Local Long Distance is a privately held company headquartered in Saint Paul, Minnesota. The consumers slammed by LLD described in this forfeiture action reside in California, New York, Idaho, Washington and Pennsylvania.

Action by the Commission, November 30, 2000, by Order (FCC 00-422). Chairman Kennard, Commissioners Ness, Furchtgott-Roth, Powell and Tristani.

File No. EB-99-09

Enforcement Bureau Contacts: John Winston at (202) 418-7450 or Katherine Power at (202) 418-0919.

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