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Statements: Kennard | Furchtgott-Roth

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Federal Communications Commission
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Washington, D.C. 20554
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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. 515 F 2d 385 (D.C. Circ 1974).

June 6, 2000

John Winston (202) 418-7450


Latest Action Brings Slamming Total To Over $8.5 Million Since February

Washington, D.C. - Today the Federal Communications Commission (Commission) released an order adopting a Consent Decree between the Commission and MCI WorldCom Communications, Inc. (MCI WorldCom) that terminates a Commission investigation into unauthorized conversion (slamming) of consumers' preferred carriers by MCI WorldCom. In the agreement, MCI WorldCom agrees to restructure significantly its telemarketing and other business practices to protect consumers against slamming.

Under the terms of the Consent Decree, MCI will make a voluntary contribution to the United States Treasury in the amount of $3,500,000. MCI WorldCom has also agreed to take major actions to deter slamming, including, among others: 1) to implement a significantly revised slamming prevention program which will include financial disincentives and strict disciplinary provisions for its employees and agents found to be engaged in slamming; 2) to establish a new credit policy which will require the issuance of credits to those consumers who claim to have been slammed; 3) to establish an Executive Review Panel to conduct quarterly reviews of quality control; and, 4) to report to the Commission on the progress of its anti- slamming program and its record of compliance with the Consent Decree.

The Consent Decree follows five other recent slamming enforcement actions by the Commission since February 2000: 1) a $1.36 million forfeiture imposed on Amer-I-Net Services Corporation; 2) a $2 million forfeiture imposed on Long Distance Direct, Inc.; 3) a $1 million forfeiture imposed on Brittan Communications International, Inc.; 4) a Consent Decree entered into between the Enforcement Bureau and Sprint Communications Company, LP, resulting in a voluntary contribution to the U.S. Treasury of $250,000; and 5) a Consent Decree entered into between the Enforcement Bureau and Excel Telecommunications Company, Inc., resulting in a voluntary contribution to the U.S. Treasury of $400,000. In addition, the Commission recently released an order that further strengthens its slamming rules to take the profit out of slamming and create additional industry-wide disincentives against slamming. That order also supports increased joint cooperative efforts between the Commission and the states to tackle slamming issues.

Action by the Commission, June 6, 2000, by Order FCC No. 00-205. Chairman Kennard, Commrs. Ness, Powell, Tristani; Commr. Furchtgott-Roth concurring in part, dissenting in part and issuing a separate statement.

- FCC -

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