NEWSReport No. DC-2681     ACTION IN DOCKET CASE          November 10, 1994

       FCC TAKES FURTHER ACTION TO PREVENT UNAUTHORIZED SWITCHING 
                       OF LONG DISTANCE CARRIERS  
                          (CC DOCKET NO. 94-129)

     Citing over 4,000 complaints received in the last two years, the FCC today asked for
comments on ways to eliminate the practice of changing a customer's long-distance telephone
company without the customer's knowledge or approval. This practice is commonly known as
"slamming." 

     Current FCC rules require that a company must obtain the customer's authorization in
order to change his or her long distance service.  One method of obtaining this authorization is
by a Letter of Agency (LOA), by which the customer indicates, in writing, that he or she wishes
to switch long distance companies.  The Commission's investigation of "slamming" complaints
has revealed that a significant cause of the problem has been confusion regarding the purpose
of the LOAs.  The Commission's proposed rules are designed to prevent such consumer
confusion.  At present, many long distance carriers  combine LOAs with promotional
inducements, such as contest entries, prize giveaways, and checks, which are designed to attract
new customers.  As a result, recipients may be unaware that by signing the document to enter
the contest, claim the prizes, or cash the checks, they also are supposedly "authorizing" the
company to change their long distance carrier. 

     In order to further protect consumers from these misleading inducements, the
Commission has proposed to require (1) that LOAs be separate from other promotional or
inducement materials; (2) that the LOAs be limited strictly to authorizing a change in long
distance carriers; and (3) that they be clearly identified as an LOA.  Further, the Commission
has proposed that the language in the LOA be clear and unambiguous and that the print be of
sufficient size and readable style to be clear to the consumer that the document, if signed, would
change his or her long distance company.  

     Noting that it is very concerned about the problem of slamming in the non-English
speaking community, the Commission is also seeking comment on whether it should adopt rules
to govern bilingual or non-English language LOAs.  For example, the Commission seeks
comment on whether it should require all parts of the LOA to be fully translated if any parts are
translated.  




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     Finally, the Commission seeks comment on several other issues pertaining to
unauthorized changes of consumers' long distance companies that have come to its attention as
a result of consumer complaints.  For example, comments are requested concerning: (1) whether
and to what extent consumers should be liable for the long distance telephone charges billed to
them by the unauthorized carrier; and (2) whether all LOAs should be captioned "An Order to
Change My Long Distance Telephone Service Provider" or a similar title that makes it clearer
to consumers that the LOA authorizes a change in their long distance service. 

     Action by the Commission, November 10, 1994, by Notice of Proposed Rulemaking
(FCC 94-292).  Chairman Hundt, Commissioners  Quello, Barrett, Ness and Chong.

                                   -FCC-

     News Media contact:  Susan Lewis Sallet at (202) 418-0500.
     Common Carrier Bureau contacts: Donna Lampert at (202) 418-1580 and Wilbert E.
Nixon, Jr. at (202) 418-0960.