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Media Contact:
Will Wiquist, (202) 418-0509
will.wiquist@fcc.gov
For Immediate Release
FCC FINES COMPANIES $11 MILLION FOR UNAUTHORIZED
CHARGES ON CONSUMER BILLS, DECEPTIVE MARKETING,
AND ILLEGAL CARRIER CHANGES
Companies Impersonated Consumers’ Existing Carriers
--
WASHINGTON, September 15, 2016 – The Federal Communications Commission today
announced $11 million in fines against three related long distance carriers for “cramming”
unauthorized charges onto consumer telephone bills, “slamming” consumers by switching their
preferred phone carriers without authorization, deceptive marketing, and violating the FCC’s
truth-in-billing rules. The companies, Central Telecom Long Distance, Consumer Telcom, and
U.S. Telecom Long Distance, are run as one operation by Data Integration Systems, Inc. The
FCC is committed to combating abusive practices that result in telephone consumers paying for
services they never requested or received and expending significant time and effort to seek to
reverse the unauthorized charges and services.
“This isn’t rocket science: no consumer should be charged for phone services that they canceled
or never requested in the first place,” said Enforcement Bureau Chief Travis LeBlanc. “Today’s
fines make clear that we will aggressively prosecute those who ‘slam,’ ‘cram,’ or otherwise abuse
consumers by unlawfully charging them for services they didn’t want or request.”
During this investigation, the FCC’s Enforcement Bureau reviewed over 260 consumer
complaints about the three California-based companies. Many of the complaints were submitted
by or on behalf of consumers who had neither heard of the companies nor intended to sign up for
their services.
Operating as a single enterprise, the companies’ telemarketers falsely claimed that they were
calling on behalf of consumers’ real telephone carriers about a change in existing service. The
companies then misused consumers’ answers to switch their long distance carriers to one of the
companies. When customers realized what had occurred and returned to their preferred carriers,
these companies continued to charge consumers a recurring monthly fee. The companies also
failed to clearly and plainly describe the charges included in their customer bills, as required by
the FCC’s rules.
For more information about the FCC’s rules protecting consumers, see the FCC consumer guides
regarding cramming at http://go.usa.gov/cyvhH and slamming at http://go.usa.gov/cyvhh. More
information on the FCC’s truth-in-billing rules can be found at
https://www.fcc.gov/general/truth-billing-policy.
To file a complaint with the FCC, go to https://consumercomplaints.fcc.gov/hc/en-us 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 fines, formally known as Forfeiture Orders, are available at:
https://apps.fcc.gov/edocs_public/attachmatch/FCC-16-122A1.pdf
https://apps.fcc.gov/edocs_public/attachmatch/FCC-16-123A1.pdf
https://apps.fcc.gov/edocs_public/attachmatch/FCC-16-124A1.pdf
Action by the Commission September 14, 2016 by Forfeiture Orders (FCC 16-122, FCC 16-123,
FCC 16-124). By the Commission: Commissioner O’Rielly concurring in part and dissenting in
part.
###
Office of Media Relations: (202) 418-0500
TTY: (888) 835-5322
Twitter: @FCC
www.fcc.gov/office-media-relations
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. Cir. 1974).