NEWSReport No. CC 96-3                      COMMON CARRIER ACTION        January 23, 1996

                FCC ANNOUNCES CONSUMER PROTECTION BRANCH
        Hundt Calls FCC the "Triple A" of the Information Highway

       FCC Chairman Reed Hundt and Common Carrier Bureau Chief Regina Keeney today
announced the newly named Consumer Protection Branch.  This office, which now handles
50,000 telephone and written complaints and inquiries from consumers each year, is part of
the Bureau's Enforcement Division and was previously known as the Informal Complaints and
Public Inquiries Branch.  The Common Carrier Bureau also announced the issuance of five
Notices of Apparent Liability for alleged violations of the FCC's slamming rules (see separate
release) based on consumer complaints received by the Consumer Protection Branch.

       Chairman Hundt said, "The FCC is the 'Triple A' of the Information Highway and just
like that organization, our mission is to provide information to help consumers choose their
routes and to help them with problems once they are on the road.  The Branch's new name
presents this mission statement clearly and concisely.  The slamming actions announced today
should also serve notice to consumers and the industry that the FCC is committed to
vigorously enforcing the rules of the road."

       "We are taking every step we can to be more accessible to consumers and carriers,"
said Keeney.  "In the last six months, we've increased our complaint caseload processing by
nearly 50%.  We are improving and streamlining telephone access to the Branch, improving
our consumer and carrier literature, and increasing our reach through non-traditional means
including the Internet and targeted communities of interest such as senior citizens." 

       Each year the Consumer Protection Branch receives approximately 25,000 written
consumer complaints about interstate telephone service along with 30,000 phone calls,
hundreds of additional complaints referred to the agency by members of Congress and e-mail
inquiries.  The Consumer Protection Branch investigates each individual complaint and also
opens investigations into patterns of abuse by particular companies and in certain areas.

       The Chief of the Enforcement Division, John Muleta, described the name change as
one of the many steps the Branch is taking to reflect its role in the new era of competitive
telecommunication services. "The name change is important because it gives consumers an
easy point of reference about whom to contact with their concerns," Muleta said.  "Remember
that increased competition in telecommunications means consumers will have more choices.   

   (over)




However, having more choices also means consumers will need more information to make the
right decisions.  The Branch can provide consumers with the information they need and its
new name should help consumers find us faster."

Consumer Protection Branch activities include the following:

o      Common Carrier's Scorecard report
       The new Common Carrier Scorecard, released in the fall of 1995, provides the public
       with information about the number and nature of complaints received by the Consumer
       Protection Branch and the level of complaints generated by carriers.  The Scorecard
       also provides consumers with advice about avoiding the problems described in the
       report.

o      Slamming
       The information the Consumer Protection Branch collected from consumer complaints
       and carrier responses regarding the unauthorized change of long distance service,
       "slamming," was instrumental in leading to the changes in FCC rules governing the
       marketing of long distance services.  These changes were adopted in June and took
       effect in September.    A team composed of Consumer Protection Branch and the
       Formal Complaints Branch staff members is responsible for investigating consumer
       slamming complaints alleging egregious behavior on the part of carriers or their
       agents.  This work has so far led to a series of Notices of Apparent Liability to be
       issued against the responsible carriers.  In addition, the Branch's public education
       campaign has alerted consumers to the problem of slamming and the need to monitor
       phone bills and promotional material.

o      Operator Services Providers
       The Consumer Protection Branch's consumer complaint data in this area is helping the
       Commission formulate new policies and rules regarding OSP services.  In addition, the
       Branch's data has helped the Enforcement Division to investigate the rate practices of
       several OSP carriers by identifying those carriers that have generated high levels of
       consumer complaints and whose rates appear to be excessive.  These investigations
       have resulted in a few of the carriers voluntarily improving their marketing and pricing
       programs.  The Branch has also embarked on an aggressive public education campaign
       has reminded OSP consumers to STOP, LOOK and LISTEN before using a public
       phone. 














o      Public Information
       In addition to the slamming and OSP campaigns, the Consumer Protection Branch has
       begun revamping all consumer educational materials.  Approximately 12,000-15,000
       pieces of consumers informational material are distributed each year, including
       information sent to consumers who file complaints with the agency.  These materials
       cover topics ranging from toll fraud to the Subscriber Line Charge to ISDN

                                  -FCC-

News media contact:  Susan Lewis Sallet at (202) 418-1500.
Common Carrier Bureau contact:  Enforcement Division, (202) 418-0700.