April 18, 1994

Report No.   CC-571     COMMON CARRIER ACTION


CHERRY COMMUNICATIONS' AGREEMENT TO MAKE $500,000 PAYMENT
  ENDS COMMISSION INVESTIGATION INTO SLAMMING PRACTICES

     The Commission and Cherry Communications, Inc., have entered
into a Consent Decree
which provides that Cherry will make a voluntary, non-tax
deductible contribution of
$500,000 to the U.S. Treasury. 

     The Commission has agreed to terminate its investigation
into Cherry's marketing
practices which was begun after numerous informal complaints had
been received from
telephone customers alleging that Cherry had changed their long
distance carriers without
authorization.

     The complainants claimed that Cherry had named itself as
their primary interexchange
carrier (PIC) although they had not agreed to the change.  This
practice, commonly known as
"slamming," violates Commission rules and policies.  Although not
admitting liability, Cherry
has agreed to make the $500,000 contribution and withdraw a
pending application for
authority to operate as an international resale carrier.  Cherry
has also agreed to restrict its
use of telemarketing and take certain other steps designed to
minimize the possibility of
"slamming."  For example, Cherry has agreed to effect no PIC
change orders until it has first
obtained a Letter of Agency (LOA) from the customer.  In
addition, Cherry must perform a
second verification.  All LOAs will be individually verified by
an agent of Cherry who will
obtain the customer's oral authorization.  Cherry will also send
each such customer a letter by
first-class mail confirming the change and providing information
on general terms and
conditions. It appears that Cherry is no longer engaged in the
practices that gave rise to the
investigation and the Commission has not received complaints
alleging further or continuing
misconduct.

     Although the Consent Decree does not resolve the pending
informal complaints, Cherry
has stated that its policy has been to reimburse each consumer
for unauthorized PIC change
charges that have been incurred.  Further, Cherry has agreed to
reimburse affected customers
for any additional charges that exceeded those that would have
been billed by their original
long distance carriers.

-FCC-
                               
News Media contact: Rosemary Kimball at (202) 632-5050.  Common
Carrier Bureau contact:
Jerry Zuckerman at (202) 632-4887.