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FOR IMMEDIATE RELEASE: NEWS MEDIA CONTACT:
June 16, 2011 David Fiske (202) 418-0513
Email: david.fiske@fcc.gov
FCC TO CRAMMERS: NO MORE "MYSTERY FEES"
$11.7 Million in Penalties Proposed For Unauthorized Charges on
Consumers' Monthly Phone Bills
Washington, D.C. - The Federal Communications Commission (FCC) today
proposed a total of $11.7 million in penalties against four companies that
appear to have unlawfully billed tens of thousands of consumers for
unauthorized charges - a practice known as "cramming." The proposed
penalties were issued against Main Street Telephone ($4,200,000);
VoiceNet Telephone, LLC ($3,000,000); Cheap2Dial Telephone, LLC
($3,000,000); and Norristown Telephone, LLC ($1,500,000).
"Cramming" occurs when a company places charges on a consumer's phone bill
without authorization. These mystery fees typically range from $1.99 to as
much as $19.99 per month. They are often buried in multi-page phone bills
and have misleading labels that make it difficult for a consumer to detect
them. The FCC has found that cramming is an "unjust and unreasonable"
practice that violates section 201(b) of the Communications Act.
FCC Enforcement Bureau Chief Michele Ellison stated: "Cramming attacks
consumers in the pocketbook, where it really hurts. The Enforcement Bureau
takes today's actions to protect thousands of consumers who appear to have
been hoodwinked into paying for services they never wanted, ordered, or
used."
In today's cases, the FCC issued Notices of Apparent Liability to each of
the four companies for apparently charging thousands of customers for
"dial-around" long distance service that they had not ordered. The
Enforcement Bureau's investigation revealed that only a tiny fraction of
the affected consumers (about one-tenth of one percent) actually used the
services for which they were charged. Nevertheless, the apparently
unlawful billing continued for months and sometimes years.
Because these enforcement actions suggest disturbing patterns of deceptive
activity, the Commission today also released an Enforcement Advisory on
cramming, emphasizing that all charges placed on phone bills must be
authorized by the customer, and warning that the Commission will take
aggressive enforcement action in this area. The Advisory is available at
http://transition.fcc.gov/eb/Public_Notices/DA-11-1063A1.html.
In order to help consumers protect themselves, the FCC has published a
fact sheet, available at
http://www.fcc.gov/cgb/consumerfacts/cramming.html, which provides advice
on how to avoid cramming, and what consumers should do if they discover
unauthorized charges on their phone bills.
For further information, contact Mika Savir (202-418-0384) or Erica
McMahon (202-418-0346).
--FCC--
News and other information about the FCC is available at www.fcc.gov
NEWS
Federal Communications Commission
445 12th Street, S.W.
Washington, D. C. 20554
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).
News Media Information 202 / 418-0500
Internet: http://www.fcc.gov
TTY: 1-888-835-5322