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FOR IMMEDIATE RELEASE: NEWS MEDIA CONTACT:
February 27, 2015 Mark Wigfield, 202-418-0253
E-mail: mark.wigfield@fcc.gov
FCC PLANS $9 MILLION FINE AGAINST GPSPS, INC. FOR ILLEGALLY BILLING
CUSTOMERS AND SWITCHING THEIR PHONE COMPANIES
Long Distance Carrier Allegedly Relied on Fabricated "Authorization"
Recordings to Mislead the Commission and State Regulators
Washington, D.C. - The Federal Communications Commission plans to fine
GPSPS, Inc., an Atlanta, GA telephone company, $9,065,000 for allegedly
switching consumers' long distance telephone services without their
authorization ("slamming"), billing customers for unauthorized charges
("cramming"), and submitting falsified evidence to government regulatory
officials as "proof" that consumers had authorized the company to switch
their long distance providers.
"Consumers should not have to wrestle with multi-page phone bills loaded
with bogus charges," said Travis LeBlanc, Chief of the Enforcement Bureau.
"The FCC will hold companies accountable who prey on consumers by
switching their telephone carriers and placing charges on their telephone
bills without authorization."
The Enforcement Bureau reviewed over 150 complaints against GPSPS that
consumers filed with the Commission, the Federal Trade Commission, the
Public Utility Commission of Texas, and the Better Business Bureau.
Consumers complained that GPSPS switched their long distance service
provider without their authorization even though they had never heard of
or spoken to the company before discovering GPSPS's charges on their
telephone bills. In many cases, GPSPS refused to refund all of the
unauthorized fees it allegedly charged consumers. Instead, the company
apparently misrepresented to consumers that they or someone in their
household had authorized GPSPS's service, and that GPSPS possessed an
audio recording evidencing the authorization. The audio "verification"
recordings GPSPS mentioned to consumers were fake. Although GPSPS
submitted these fabricated recordings to the Commission and state
regulatory authorities as "proof" that the consumers authorized its
service, consumers who listened to the recordings informed the Enforcement
Bureau that the recordings were fabricated and adamantly denied that the
voices on the recordings were their own.
The Commission charged GPSPS with willfully and repeatedly placing
unauthorized charges on consumers' local telephone bills, switching
consumers' preferred long distance carrier without verified authorization,
and submitting fabricated audio "verification" recordings in an effort to
mislead the Commission, all in apparent violation of the Communications
Act and Commission rules.
With today's action, the Commission has now taken nearly 30 enforcement
actions for cramming or slamming in the past five years. These actions
have announced more than $90 million in penalties, and are slated to
return more than $200 million to consumers.
For more information about the FCC's rules protecting consumers from
unauthorized charges on phone bills, see the FCC consumer guide, Cramming
- Unauthorized, Misleading, or Deceptive Charges Placed on Your Telephone
Bill. For information about other communications issues, visit the FCC's
Consumer website, or contact the FCC's Consumer Center by calling
1-888-CALL-FCC (1-888-225-5322) voice or 1-888-TELL-FCC (1-888-835-5322)
TTY; faxing 1-866-418-0232; or by writing to:
Federal Communications Commission
Consumer and Governmental Affairs Bureau
Consumer Inquiries and Complaints Division
445 12th Street, SW
Washington, DC 20554
The Notice of Apparent Liability is available at:
https://apps.fcc.gov/edocs_public/attachmatch/FCC-15-26A1.pdf
-FCC-
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