WPC F2bs|zT|af~iYXrG*n07KwC?Jzz-)yu퉙9op7r)m,ܢh qĻ Ƙ{BBQGR2C1wR4b",Z6DiYk%!! vh8HGFeT~h4Kj7Z,Ȑqz梛 a88FE)ԇ6ݺLk\"m$אm#;Oy:kѦ|FN>R&iV/ Ҧ*V;a-h.CIL}oZ64H፮ !)im_P 0U uϓ@{kdU6Ү$ n h+Ń#ؾ.3n^ >3 %@ 0@ 0IA 0B 0B 0C 0D 0E 0,F 0G 0H 0I 0gJ 0-K 0K 0L 09M 0M 0N 0fO 0P 0vP 0vQ 0Q 0R 0R 0tS 0cT 0eU 0)zV 0<W 0NX 0a-Z 0[ 0x] 0b_ 0LaU.fb 0b 0+cU :d 0e 0e 0uf 0Mg 0+hg 0/hqi 03j 0GQkU Bl 0\l 06n 0<o 0Tq 0ir 0r 0s 0,t 0u 0u 0vv 07w 0w 0{x 0TJy 0Az 0.{ 0 } 0(~ 00 0% 0ˀ 0 0| 0 0m 0m 0{p 0 0Ik 0 0J 0 0Iz 0|Ê 0b? 0h 0n 01wU : 0I 0ړ 0{ 0V 0B 01Ù 0 0  0 0 0 0Ÿ 0n 0n 0[[ 0[ 0i 0z 0 0 0M 0ۤ 0i 0 0 0* 0Ч 0} 0@@ 0- 0 0Ǭ 0έ 0® 0 0q 0l, 0l 0Y 0Y] 0g 0 0 05 0 0~ 0 0 0( 0ͷ 0s 0 0@ 0-# 0P 0j 0q 0e 0F 0 0l 0l; 0Y 0Y 0gY 0 0R 0 0 0! 0 0= 0 0p 0 0 0 0 0 0e 0 0 0] 0 0y 0@4 0-t 0 0 0 0 0 0) 0 0l 0 0Y 0Y 0gV 0l 0l) 0l 0Y 0YZ 0g 0 0 04 0 0y 0 0 0 0 0d 0 0= 0 0zU. 0rU." 0 P 0Z 0W 0W 0L 0A 0 0 0 0 0 0 0. 0. 0. 0.8 0.f 0. 0. 0. 0hU. 0hU. 0hJU. 0hU.H 0v 0& 0 0Bn 04 04 04  04L  04  0  0\  0 0U.0 0^ 0x 0}c 0r 0E 0  0= 0F# 0Pi 1 7L 0Z 1 7(  0z5 0 0C 0 V 0Fa 0!-;" 1Mih" 0FC"#^&*,{1]o57e~9:;:>WA4CGTKMM9O2Q+SWY[bEgjlo@qs{y|}_%)NaƓ$8!la0sºӼi@' A|J,*"PB,A)-tL Ay O?k#+%&(*_,IM.V027 :=?ADF-JN8PR TVX0\_a`\cRejkNmprsu|wMy{|~ ep~E`SՒL @,RܤqI|^jȸٺa"hXELbJ".I/g0     /5  D"(u*K-0+2:4H6 9;Z=(K@sB|eDFHJLwN"Q'SUWY\^`'bd'fhjlndp,r t voxz|,Q~}a>l،ED\T@ i:es?FQ-Q?/]T$xrR MWh<jr=u|T'Uu 2 p3C  h"'<$ c&o(C*tD-1l3j6+8:<?AC=EJKMnOQ SU;jXFZ\^pfoh#j2k%,nQqFtu xCzKJ|^ɆىTێj/6ye.1дA{z8Wpb?a e2q-y'ho`/2; 5 HX4 0 j!?C$ &)[|+024j6]B9;j/>g@<CH t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  399  0  See,e.g.,USWESTReplyCommentsat25;_USTA_ԀReplyCommentsat5;_TNRA_ԀCommentsat3.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  400  0  SeeAppendixA,64.1190(e)(2).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  401  0  _TOPC_ԀReplyCommentsat5.SeealsoAT&TPetitionCommentsat7;_Telco_ԀCommentsat89;Ohio  CommissionCommentsat11;_Worldcom_ԀCommentsat10. N t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  402  0  See,e.g.,_GTE_ԀPetitionCommentsat5;CitizensPetitionReplyat5;_Ameritech_ԀPetitionCommentsat21. * t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  403  0  Moreover,wecanrevisittheseconclusionsiffurtherexperienceindicatesthattheserulesbecomeunduly  burdensome.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  404  0  SeeAT&TPetitionReplyat5,n.8. & t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  405  0  See,e.g.,_Ameritech_ԀCommentsat2021(discussingdevelopmentof24hourvoiceresponseunit).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  406  0  IXCLongDistanceCommentsat5. ` t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  407  0  _Ameritech_ԀReplyCommentsat14.Seealso_NYSCPB_ԀReplyCommentsat10;USWESTReply  Commentsat25. 5 t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  408  0  MCIPetitionat9.Seealso_Midcom_ԀPetitionCommentsat3;_BCI_ԀCommentsat3.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  409  0  See,e.g.,_CompTel_ԀPetitionCommentsat4;SprintCommentsat34;MCIReplyCommentsat10  (indicatingthat_LECs_Ԁengagein"winback"effortsevenwhileparticipatinginthreewaycalls).Butsee X BellAtlanticReplyCommentsat11,n.21.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  410  0  _SNET_ԀPetitionReplyCommentsat7. Q t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  411  0  See,e.g.,IllinoisCommerceCommission,MCITelecommunicationsCorp.etal.v.IllinoisBell  TelephoneCo.,Order,CaseNos.960075and960084(rel.Apr.3,1996)("[_d]uring_Ԁtelephonecallsfor X thepurposeofchangingthecustomer's_intraMSA_ԀPICtoanothercarrier,Respondentshouldnotattempt P toretainthecustomer'saccountduringtheprocess");MichiganPublicServiceCommission,Sprint  CommunicationsCompany,L.P.v._Ameritech_ԀMichigan,CaseNo.U-11038(Aug.1,1996)(concluding P that"ifacustomerwith[apreferredcarrierfreeze]callstochangeproviders,_Ameritech_ԀMichiganshall H notusethatcontacttotrytopersuadethecustomernottochangeproviders").  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  412  0  47U.S.C.201(b).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  413  0  SeesupradiscussiononMarketingUseofCarrierChangeInformation.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  414  0  See47U.S.C.201,208.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  415  0  SeeMCIPetitionat89;IXCLongDistanceReplyCommentsat5.Wenotethatatleastoneincumbent  LECmakesthisinformationavailablealready.BellSouthReplyCommentsat7;cf._Ameritech_ԀReply X Commentsat1112. S t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  416  0  Ifwefindthatsubstantialimpedimentstothetimelyidentificationandliftingofpreferredcarrierfreezes  existsinthefuture,wecanrevisitthisissue.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  417  0  FurtherNoticeandOrder,12FCC_Rcd_Ԁat10,689.Seealso_OCC_ԀCommentsat3;_Worldcom_ԀComments  at10. ` t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  418  0  See,e.g.,_Ameritech_ԀCommentsat23;BellAtlanticCommentsat5;MCICommentsat17.SeealsoOhio  CommissionCommentsat12. ] t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  419  0  See,e.g.,MCIPetitionReplyat3;IntermediaCommentsat7;LCICommentsat1;_Telco_ԀCommentsat7;  ExcelReplyCommentsat23. 2 t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  420  0  See,e.g.,_NAAG_ԀCommentsat11;_PaOCA_ԀCommentsat7;SprintCommentsat34. > t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  421  0  See,e.g.,MCICommentsat1314;OhioCommissionCommentsat1112;cf._USTA_ԀReplyCommentsat  7.Cf.BellSouthCommentsat12,n.25(statingthatitdoesnotofferpreferredcarrierfreezesforchoiceof X localserviceproviderswhethertheproviderisBellSouthorareseller_CLEC_). y t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  422  0  See,e.g.,OhioCommissionCommentsat1112;LCICommentsat23;IntermediaCommentsat6;_TRA_  PetitionCommentsat24(citingexamplesfromMCIPetition).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  423  0  See,e.g.,_OCC_ԀReplyCommentsat6("Customerswouldthusnotbeabletoprotectthemselvesagainst  slammingforoneyearunderAT&T'sproposal.");_NYSDPS_ԀCommentsat89;_NCL_ԀCommentsat8.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  424  0  See,e.g.,NewJerseyBoardofPublicUtilities,InvestigationofIntraLATATollCompetitionfor  TelecommunicationsServicesona_Presubscription_ԀBasis,DocketNo.TX94090388(June3,1997); X CaliforniaPublicUtilitiesCommission,AlternativeRegulatoryFrameworksforLocalExchangeCarriers, P  Decision9704083(Apr.23,1997);Tex.Admin.CodeTitle16,23.103(prohibitingfreezesfor  _intraLATA_Ԁtollservicesuntilsubscribersreceivenoticeofequalaccess). M t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  425  0  See,e.g.,_NYSDPS_Ԁat9.;_Ameritech_ԀPetitionCommentsat17;USWESTReplyCommentsat11,n.28.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  426  0  SeesupradiscussiononDefinitionof"Submitting"and"Executing"Carriers. ? t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  427  0  SeeinfradiscussioninFurtherNoticeofProposed_Rulemaking_,Resellersand_CICs_.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  428  0  SeesupradiscussiononSubscriberRefundsorCredits.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  429  0  SeeAppendixB,64.1100(c).Thisproposalwouldnotaffecttheobligationofslammingcarriersto  remittoauthorizedcarriersbillingandcollectionexpensesandcarrierchangecharges.SeeAppendixA, X 64.1170(a)(2),(b).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  430  0  SeeAppendixB,64.1100(d)(1).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  431  0  SeeAppendixA,64.1100(d)(3).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  432  0  Id.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  433  0  47U.S.C.201(b),4(_i_).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  434  0  SeesupradiscussiononLimitationonFreezeMechanismsforResoldServices.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  435  0  SeesupradiscussiononDefinitionof"Submitting"and"Executing"Carriers.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  436  0  SeesupradiscussiononLimitationofFreezeMechanismforResoldServices. ! t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  437  0  See,e.g.,_NYSDPS_ԀCommentsat9;_Ameritech_ԀCommentsat17.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  438  0  Mostaccessprovidersare_ILECs_Ԁthatprovideaccesscustomerswithcircuitsthatinterconnecttothe  _ILEC_'spublicswitchedtelephonenetwork.Commissionrulesrequirethat"interstateaccessservices X shouldbemadeavailableonanondiscriminatorybasisand,asfaraspossible,withoutdistinction P betweenenduserandIC(interexchangecarrier)customers."PetitionofFirstDataResources,Inc.,  RegardingtheAvailabilityofFeatureGroupBAccessServicetoEndUsers,MemorandumOpinionand P Order,1986WL2911786(rel.May28,1986)atpara.13.Typicalaccesscustomersinclude H interexchangecarriers,wirelesscarriers,competitiveaccessproviders,andlargecorporateusers. ! t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  439  0  FeatureGroupDaccess,or"equalaccess,"isknownintheindustryas"Oneplus"("1+")dialing.This  typeofaccessallowscallstoberouteddirectlytothecaller'scarrierofchoice.FeatureGroupDaccess X offersfeatures,including_presubscription_,notgenerallyavailablethroughotherformsofaccess.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  440  0  SeeLetterfromKathleen_M.H._Ԁ_Wallman_,Chief,CommonCarrierBureau,FederalCommunications  CommissiontoRonConners,Directorof_NANP_ԀAdministration,datedMarch17,1995.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  441  0  AdministrationoftheNorthAmericanNumberingPlan,CarrierIdentificationCodes(_CICs_),Second  ReportandOrder,CCDocketNo.92237,12FCC_Rcd_Ԁ8024(1997).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  442  0  AdministrationoftheNorthAmericanNumberingPlan,CarrierIdentificationCodes(_CICs_),Orderon  Reconsideration,OrderonApplicationforReview,andSecondFurtherNoticeofProposed_Rulemaking_, X CCDocketNo.92237,12FCC_Rcd_Ԁ17876(1997).Wenotethat1+dialingisnotaffectedbytransition P fromthethreedigit_CIC_,fivedigitCACformattothefourdigit_CIC_,sevendigitCACformat.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  443  0  Aconsumer"dialsaround"a_presubscribed_Ԁcarrierbydialinganaccesscodeprefix(e.g.,10333or1800  8778000toreachSprint,or1800CALLATTtoreachAT&T)inordertoreachanIXCtowhichheor X sheisnot_presubscribed_. O t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  444  0  CarrierIdentificationCode(_CIC_)AssignmentGuidelines4,INC950127006,IndustryNumbering  Committee(November,1997). X t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  445  0  See,e.g.,TheBellAtlanticTelephoneCompanies,TariffFCCNo.1(June30,1998)andBellSouth  Telecommunications,Inc.,TariffFCCNo.1(May27,1998).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  446  0  47U.S.C.201(b),4(_i_).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  447  0  ReportandRecommendationofthe_CIC_ԀAdHocWorkingGrouptotheNorthAmericanNumbering  Council(_NANC_)RegardingtheuseandAssignmentofCarrierIdentificationCodes(_CICs_),February18, X 1996at7.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  448  0  47U.S.C.251(e)(2).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  449  0  SeePoliciesandRulesConcerningUnauthorizedChangesofConsumers'LongDistanceCarriers,Notice  ofProposed_Rulemaking_,9FCC_Rcd_Ԁ6885(1994),BellSouth'sReplyCommentsat24.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  450  0  See,e.g.,_NAAG_ԀCommentsat17;QuickResponseCommentsat2.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  451  0  _NAAG_ԀCommentsat17.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  452  0  Id.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  453  0  Seealso,e.g.,ACTAReplyCommentsat29;MCIReplyCommentsat4,n.5.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  454  0  _VoiceLog_ԀCommentsat3.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  455  0  Id. 1 t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  456  0  See,e.g.,_TPV_ԀServicesReplyCommentsat7;_VoiceLog_ԀCommentsat5.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  457  0  SeeQuickResponseCommentsat46.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  458  0  _NAAG_ԀCommentsat17.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  459  0  QuickResponseCommentsat5.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  460  0  See,e.g.,ACTAReplyCommentsat28;_TPV_ԀReplyCommentsat6.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  461  0  SeeAppendixA,64.1150. * t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  462  0  See,e.g.,47_C.F.R._Ԁ64.1150(b)(requiringthatanLOAbesignedanddatedbythesubscriber).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  463  0  See47_C.F.R._Ԁ64.1150(e)(4).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  464  0  _SBC_ԀCommentsat6.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  465  0  See1995ReportandOrder,10FCC_Rcd_Ԁat9564,n.16.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  466  0  SeeAppendixB,64.1100(f).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  467  0  SeeS.1618,105thCong.,2ndSess.(1998).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  468  0  Forexample,wehaveexperienceddifficultyintrackingdowncertain_switchless_Ԁresellers.Becausethey  reselltheserviceoffacilitiesbasedcarriersanddonotrequirelargeamountsofcapital,_switchless_ X resellersareextremelyportablebusinesses.Thisportabilityenablesunscrupulousentitiestoentera P marketasresellerstocommitfraudanddisappearatthefirstsignoftrouble,onlytoreappearinanother  stateunderadifferentbusinessname.Inconductingourinvestigationsofslammingcarriers,weoften P encounterthisexactproblemwhenattemptingtoserveprocessonentitiesthathavedesertedtheir H businessaddresslocations.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  469  0  SeeAppendixB,64.1195.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  470  0  Forexample,section1.47(h)oftheCommission'srulesrequirescommoncarrierstodesignateanagentin  theDistrictofColumbiaforserviceofprocess.47_C.F.R._Ԁ1.47(h).Amongotherthings,this X designationincludesthecarrier'sname,businessaddressandtelephonenumber.Id.Also,the P Commissionreceivescertaincarrierinformationthatiscompiledfromworksheetscarriersusetocalculate  theircontributionstofundinterstatetelecommunicationsrelayservice(TRS),federaluniversalservice P supportmechanisms,thecostrecoverymechanismfortheNorthAmericanNumberingPlan H administration,andthecostrecoverymechanismforthesharedcostsoflongtermlocalnumber  portability.TheCommissionhasissuedaNoticeofProposed_Rulemaking_Ԁproposingtosimplifythe H  Commission'sfilingrequirementsforthesepurposes.1998BiennialRegulatoryReview󄄀Streamlined  @ ContributorReportingRequirementsAssociatedwithAdministrationofTelecommunicationsRelay    Services,NorthAmericanNumberingPlan,LocalNumberPortability,andUniversalServiceSupport @   Mechanisms,NoticeofProposed_Rulemaking_ԀandNoticeofInquiry,FCC98233,CCDocket98171(rel.  8  Sept.25,1998).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  471  0  ThisproposalwouldhelptoaddressslammingconcernsraisedbytheGeneralAccountingOffice(GAO)  initsReportonTelephoneSlammingandItsHarmfulEffects.GeneralAccountingOffice, X Telecommunications,TelephoneSlammingandItsHarmfulEffects(1998)(GAOReport).Inthisreport, P theGAOstatedthattheCommissiondidnothaveanypracticeinplaceto"helpensurethatapplicants  whobecomelongdistanceproviders,orothercommoncarriers,havesatisfactoryrecordsofintegrityand P  businessethics."GAOReportat5. + t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  472  0  Forexample,theCommissioncouldpublishalist,tobeupdatedfrequently,ofcarriersthathavefiled  registrations.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  473  0  SeesupradiscussiononThirdPartyAdministratorforDisputeResolution.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  474  0  FurtherNoticeandOrder,12FCC_Rcd_Ԁat10644.Somecarriersareconcernedthatasthecompetitive  marketplacechanges,_LECs_ԀmayhaveaconflictofinterestbetweentheirroleasLECandtheirroleasan X affiliateofaninterexchangecompetitor.See,e.g.,LetterfromBruceK.Cox,AT&T,toJohn_Muleta_, P FederalCommunicationsCommission(Sept.27,1996).AT&Tsuggeststhat"toavoidtheinherent  conflictofinterestbetweencompetingcarriers,seriousconsiderationshouldbegiventoestablishing P proceduresunderwhichneutralthirdpartiesadministerPICprotection."Id.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  475  0  See,e.g.,_CompTel_ԀCommentsat7;_CWI_ԀCommentsat4;IXCLongDistanceReplyCommentsat3;LCI  Commentsat4;MCICommentsat25;SprintCommentsat19.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  476  0  See_WorldCom_ԀCommentsat16(statingthattheCommissionshouldestablishaseparate_rulemaking_Ԁto  addresstheissueofanindependentthirdpartyadministrator).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  477  0  SeesupradiscussiononConcernswithExecutingCarriers.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  478  0  See,e.g.,LCICommentsat45;SprintCommentsat19.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  479  0  See,e.g.,BellAtlanticReplyCommentsat6;MCICommentsat16.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  480  0  _TRA_ԀReplyCommentsat13.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  481  0  Seesupra  discussiononApplicationoftheVerificationRulestoAllTelecommunicationsCarriers.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  482  0  See5U.S.C.603.The_RFA_,see5U.S.C.601et.seq.XcXX4XXXcP!XX4P!,hasbeenamendedbytheContractWith  AmericaAdvancementActof1996,Pub.L.No.104121,110Stat.847(1996)(_CWAAA_).TitleIIofthe X _CWAAA_ԀistheSmallBusinessRegulatoryEnforcementFairnessActof1996(_SBREFA_).<6X9`(Courier q t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  483  E/Ԁ0  E/FurtherNoticeandOrder,12FCC_Rcd_Ԁ10,674(1997).E/) `CG Times) `CG Times  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  484  0  See5U.S.C.604.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  485  0  47U.S.C.258. c t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  486  0  SeesupradiscussiononApplicationoftheVerificationRulestotheLocalMarket;Applicationofthe  VerificationRulestoAllTelecommunicationsCarriers.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  487  0  SeesupradiscussionontheWelcomePackage.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  488  0  SeesupradiscussiononApplicationoftheVerificationRulestoInBoundTelemarketing.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  489  0  SeesupradiscussiononOtherVerificationMechanisms  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  490  0  SeesupradiscussiononLiabilityofSubscriberstoCarriers.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  491  0  SeesupradiscussiononReimbursementProcedures.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  492  0  SeesupradiscussiononSubscriberRefundsorCredits.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  493  0  SeesupradiscussionRestorationofPremiums.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  494  0  SeesupradiscussiononPreferredCarrierFreezes.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  495  0  FurtherNoticeandOrder,12FCC_Rcd_Ԁat10,708.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  496  0  Id.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  497  0  Id.at10,70809.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  498  0  Id.at10,715.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  499  0  SeeACTACommentsRegarding_IRFA_Ԁ(ACTA_IRFA_ԀComments).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  500  0  ACTA_IRFA_ԀCommentsat1.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  501  0  Id.at3.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  502  0  Id.at9.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  503  0  Id.at3.Wenotethatthisparticularproposalwillbedealtwithinasubsequentorder.Seesuprapara.3.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  504  0  Id.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  505  0  Id.at9.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  506  0  Id.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  507  0  ACTAclaims,forexample,thattheCommissionskeweditsstatisticsintheCommonCarrierScorecard  tomakeitappearasthoughthemajorityofslammingcomplaintsmaybeduetothemarketingpracticesof X smallercompanies.Id.at5.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  508  0  Id.at10.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  509  0  ACTACommentsat24.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  510  0  Id.at26.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  511  0  ACTA_IRFA_ԀCommentsat9.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  512  0  47U.S.C.258.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  513  0  See,e.g.,BellSouthReplyCommentsat3.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  514  0  5U.S.C.603(b)(3).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  515  0  Id.at601(6).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  516  0  5U.S.C.601(3)(incorporatingbyreferencethedefinitionof"smallbusinessconcern"in15U.S.C.  632).Pursuanttothe_RFA_,thestatutorydefinitionofasmallbusinessapplies"unlessanagency,after X consultationwiththeOfficeofAdvocacyoftheSmallBusinessAdministrationandafteropportunityfor P publiccomment,establishesoneormoredefinitionsofsuchtermwhichareappropriatetotheactivitiesof  theagencyandpublishessuchdefinition(s)intheFederalRegister."5U.S.C.601(3).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  517  0  SmallBusinessAct,15U.S.C.632(1996).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  518  0  FCC,TelecommunicationsIndustryRevenue:TRSFundWorksheetData,Figure2(NumberofCarriers  PayingIntotheTRSFundbyTypeofCarrier)(Nov.1997)(TelecommunicationsIndustryRevenue).We X believethattheTRSFundWorksheetDataisthemostreliablesourceofinformationforourpurposes P becausecarriersfiletheTRSworksheetsyearlyandareinstructedtoselectthesinglecategoryoftypeof  serviceprovisionthatbestdescribesthem.Othersourcesofcarrierdata,suchasthetariffsonfilewith P theCommonCarrierBureau,maynotreflectthesamefiguresastheTRSFundWorksheetData,because H suchsourcesarenotupdatedannually.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  519  0  Id.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  520  0  13_CFR_Ԁ121.201,StandardIndustrialClassification(SIC)codes4812and4813.SeealsoExecutive  OfficeofthePresident,OfficeofManagementandBudget,StandardIndustrialClassificationManual X (1987).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  521  0  See13_CFR_Ԁ121.201,SICcode4813.SincethetimeoftheCommission's1996decision,  ImplementationoftheLocalCompetitionProvisionsintheTelecommunicationsActof1996,FirstReport X andOrder,11FCC_Rcd_Ԁ15499,1614445(1996),61FR45476(August29,1996),theCommissionhas P consistentlyaddressedinitsregulatoryflexibilityanalysestheimpactofitsrulesonsuch_ILECs_.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  522  0  U.S.DepartmentofCommerce,BureauoftheCensus,1992CensusofTransportation,Communications,  andUtilities:EstablishmentandFirmSize,atFirmSize1-123(1995)(1992Census).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  523  0  Seegenerally15U.S.C.632(a)(1).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  524  0  1992Census,supra,atFirmSize1-123.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  525  0  13_CFR_Ԁ121.201,SICcode4813.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  526  0  Id.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  527  0  TelecommunicationsIndustryRevenue,Figure2.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  528  0  13_CFR_Ԁ121.201,SICcode4813.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  529  0  TelecommunicationsIndustryRevenue,Figure2.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  530  0  13_CFR_Ԁ121.201,SICcode4813.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  531  0  TelecommunicationsIndustryRevenue,Figure2.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  532  0  13_CFR_Ԁ121.201,SICcode4813.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  533  0  TelecommunicationsIndustryRevenue,Figure2.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  534  0  13_C.F.R._Ԁ121.201,SICcode4812.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  535  0  1992Census,SeriesUC92S1,atTable5,SICcode4812.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  536  0  TelecommunicationsIndustryRevenue,Figure2.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  537  0  See47U.S.C.258.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  538  0  See,e.g.,ACTACommentsat25;_TRA_ԀCommentsat11.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  539  0  _TRA_ԀCommentsat1011.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  540  0  Id.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  541  0  See47U.S.C.415.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  542  0  See,e.g.,_TRA_ԀCommentsat2;USWESTReplyCommentsat5.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  543  0  See_Ameritech_ԀCommentsat12;_SBC_ԀCommentsat45;USWESTCommentsat20.Forexample,  under_SBC_'s"3strikesandyou'reout"approach,Strike1wouldoccurifacarrier'sdisputedchangeorders X exceeded2%ofitsserviceordersinonemonth.Thecarrierwouldbeplacedonprobation.Strike2 P wouldoccurifthedisputelevelcontinuedtoexceed2%ofitsserviceordersinonemonthattheendofthe  probationperiod.Thatcarrierwouldthenbesubjectedtoafineofatleast$5,000perslamming P occurrence.Strike3wouldoccurifthedisputelevelcontinuedtoexceed2%ofitsserviceordersinone H month.Thecarrierwouldthenbesubjectto$10,000fines,aswellaspossiblesuspensionofcarrier  changeprivileges._SBC_ԀCommentsat5.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  544  0  See_Ameritech_ԀCommentsat12.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  545  0  See_TRA_ԀReplyCommentsat911.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  546  0  See,e.g.,OklahomaCommissionReplyCommentsat4;_WorldCom_ԀCommentsat7.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  547  0  AT&TReplyCommentsat4.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  548  0  See47_C.F.R._Ԁ64.1150.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  549  0  ACTACommentsat26.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  550  0  Id.at27;_RCN_ԀCommentsat5. } t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  551  0  See,e.g.,BellSouthCommentsat11;_GTE_ԀCommentsat1011;IXCLongDistanceCommentsat3;  _TOPC_ԀReplyCommentsat4.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  552  0  SeePICVerificationOrder,7FCC_Rcd_Ԁat1041.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  553  0  Id.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  554  0  See,e.g.,MCICommentsat21;_TPV_ԀServicesCommentsat7. ! t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  555  0  See,e.g.,_NAAG_ԀCommentsat8;_NYSDPS_ԀCommentsat5.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  556  0  _NAAG_ԀCommentsat8.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  557  0  _NYSDPS_ԀCommentsat5.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  558  0  See47U.S.C.415.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  559  0  ACTA_IRFA_ԀCommentsat9.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXl  XcXXcXXXc        0   XXcԁ  560    See,e.g.,ACTACommentsat35;_TRA_ԀCommentsat14.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  561  0  See,e.g.,_CompTel_ԀCommentsat8;TRSPetitionCommentsat2.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  562  0  See5U.S.C.801(a)(1)(A)       t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  563  0  See5U.S.C.604(b). w t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  564  0  See5U.S.C.603.The_RFA_,see5U.S.C.601et.seq.,hasbeenamendedbytheContractWith  AmericaAdvancementActof1996,Pub.L.No.104121,110Stat.847(1996)(_CWAAA_).TitleIIofthe X _CWAAA_ԀistheSmallBusinessRegulatoryEnforcementFairnessActof1996(_SBREFA_).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  565  0  See5U.S.C.603(a).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  566  0  Seeid.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  567  0  See47_C.F.R._Ԁ64.1100(c). l t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  568  0  SeediscussioninFinalRegulatoryFlexibilityAnalysis,DescriptionandEstimatesoftheNumberofSmall  EntitiestoWhichtheRulesAdoptedinCCDocketNo.94129WillApply. W t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  569  0  SeesupradiscussioninFurtherNoticeofProposed_Rulemaking_;DoubleRecoveryofChargesPaidby  SlammedSubscribers.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  570  0  See47_C.F.R._Ԁ1.721(a)(8).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  571  0  SeeAmendmentof47_C.F.R._Ԁ1.1200etseq.ConcerningExPartePresentationsinCommission  Proceedings,ReportandOrder,12FCC_Rcd_Ԁ7348,735657,27(citing47_C.F.R._Ԁ1.1204(b)(1))(1997).  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  572  0  See47_C.F.R._Ԁ1.1206(b)(2),asrevised.  t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  573  0  See47_C.F.R._Ԁ1.429(f). 9 t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  574  0  See47_C.F.R._Ԁ1.429.Werequire,however,thatasummarybeincludedwithallcomments,althougha  summarythatdoesnotexceedthreepageswillnotcounttowardthepagelimits.Thesummarymaybe X paginatedseparatelyfromtherestofthepleading(e.g.,as"_i_,ii").id. " t!@@X (4$  _lXX` hp x (#%'0*,.8135@8:<H?AXlӀ  575  0  SeeElectronicFilingofDocumentsin_Rulemaking_ԀProceedings,63Fed.Reg.24,121(1998). ##Xd#  t!@@X (4$  _Q=X` hp x (#%'0*XQӀ  576   4 47U.S.C.258(b)(emphasisadded).  t!@@X (4$  _Q=X` hp x (#%'0*XQӀ  577   4 47U.S.C.258(b).  t!@@X (4$  _Q=X` hp x (#%'0*XQӀ  578   4 Conversely,Irejectthenotionthatauthorizedcarrierswouldobtainawindfallifthesubscriberpaid  themforserviceactuallyprovidedbytheslammingcarrier.Theauthorizedcarriermadecapacityonitsnetwork X availableforthesubscriber'suseinrelianceontheexpectationthatthesubscriberwouldusethatnetworkandpay P forsuchuse.Thus,paymenttotheauthorizedcarrierwouldmerelyaffordtheauthorizedcarrierwiththebenefit  ofthebargainitstruckwiththesubscriber.Inanyevent,theplainlanguageofsection258clearlycontemplates P  authorizedcarriersobtainingmoneypaidbythesubscriber(totheslammer)eventhoughanothercarrierhas  providedservice. & t!@@X (4$  _Q=X` hp x (#%'0*XQӀ  579   4 Forexample,itismyunderstandingthatauthorizedcarriersmaybeabletosueslammingcarriersfor  lostprofitsbeforetheCommissionpursuanttoTitleIIoftheActorbeforestateauthorities.Otherpossible X remediesbasedonstatelawmightincludeactionsalleging_tortious_Ԁinterferencewithcontracts,interferencewith P businessrelationships,andpunitivedamages(forwillfulslammingviolations),orcontractviolations(e.g.,where  theslammingcarrierisaresellerthatcanbesaidtohaveviolatedacontractwiththeauthorizedcarrier). ##Xd#  j#*$ (4$cXԀ  580    _Q=X` hp x (#%'0*XQXcXXc 4 47_USCA_ԀSection258.kX4XXXc('!2#*$ t!X (43x  cXԀ  0  <6X9`(Courier  j#*$ (4$cXԀ  581    _Q=X` hp x (#%'0*XQXcXXc 4 47_USCA_ԀSection258.mX4XXXc<6X9`(Courier*` !"# CRight ParRight-Aligned Paragraph NumbersI.A.1.a.(1)(a)i)a)o#a) CyParagraph1. a. i. (1) (a) (i) 1) a)I.A.1.a.(1)(a)i)a)q a)3|X ($X (43x dHP DeskJet 970C SeriesT(,,,,T(0!3#37=CIQYag1.a.i.(1)(a)(i)1)a)xi){(.721(a)(TUv]e, t!X (43x  _! XX!      Beforethe ' FEDERALCOMMUNICATIONSCOMMISSION P Washington,D.C.20554 &v% w    N72%'0*,.8135@8:<H?AXNXcX%&vW72%'0*,.8135@8:<H?A2%XWIntheMatterof  ) W      )   ImplementationoftheSubscriberCarrier  )  h  SelectionChangesProvisionsofthe  ) 0  TelecommunicationsActof1996  ) 2  w      ) 2 CCDocketNo.94129 ?  PoliciesandRulesConcerning  ) 2    UnauthorizedChangesofConsumers'  ) P  LongDistanceCarriers  )     SECONDREPORTANDORDERAND p  FURTHERNOTICEOFPROPOSED_RULEMAKING_  8   Z:2%'0*,.8135@8:<H?A2%XZAdopted:December17,1998Q9  Released:December23,1998 G CommentDate:30daysfrompublicationintheFederalRegister X ReplyCommentsDate:45daysfrompublicationintheFederalRegister   {XX` hp x (#%'0*,.8135@8:<H?A2%X{BytheCommission:CommissionersNessand_Tristani_Ԁissuingstatements;CommissionerPowell g concurringinpart,dissentinginpartandissuingastatementandCommissioner_Furchtgott_ԄRoth / dissentingandissuingastatement x   TableofContents      ParagraphNo. O   I.0  Introduction#""e(#. (#(##1  II.  Background""e(#. 9 `  III.  Discussion`"`"d(#.` ` 13  (!   A. ` Section258(b)Liability`"`"d(#.317 o!" 0  0` (#(#1.0 ` (#` (#LiabilityoftheSlammedSubscriber#`"`"d(#.E (# (##17 7"# 0  0` (#(#2.0 ` (#` (#WhentheSlammedSubscriberPaystheUnauthorizedCarrier#`"`"d(#.[ (# (##34 "$ 0  0` (#(#0 ` (#` (#a.  LiabilityoftheUnauthorizedCarrier#`"`"d(#.hhM (# (##35 #H% 0  0` (#(#0 ` (#` (#b.  SubscriberRefundsorCredits#`"`"d(#.hhE (# (##38 $& 0  0` (#(#3.0 ` (#` (#InvestigationandReimbursementProcedures#`"`"d(#.L (# (##41 W%' 0  0` (#(#0 ` (#` (#a.0 (# (#WhentheSubscriberhasnotPaidtheUnauthorizedCarrier#`"`"d(#.| | a(#(##41 &( 0  0` (#(#0 ` (#` (#b.0 (# (#WhentheSubscriberhasPaidtheUnauthorizedCarrier#`"`"d(#.DD](#(##43 &h) 0  0` (#(#4.0 ` (#` (#RestorationofPremiums#`"`"d(#.tt9 (# (##47 '0 * 0  0` (#(#5. LiabilityforInadvertentUnauthorizedChanges#`"`"d(#.``P` (#` (##50 w( + 0  0` (#(#6.0 ` (#` (#DeterminingLiabilityBetweenCarriers#`"`"d(#.H (# (##53 ?)!, 0  B.0` (#(#ThirdPartyAdministratorforDisputeResolution#`"`"d(#.K` (#` (##55 *"-   C.0 ` VerificationRules#`"`"d(#.-` (#` (##58 *P#. 0  0` (#(#1.0 ` (#` (#TheWelcomePackage#`"`"d(#.5 (# (##58 +$/ 0  0` (#(#2.0 ` (#` (#ApplicationoftheVerificationRulestoInboundCalls#`"`"d(#.Y (# (##62 _,$0 0  0` (#(#3. IndependentThirdPartyVerification#`"`"d(#.,,F` (#` (##69 '-%1 0  0` (#(#4. OtherVerificationMechanisms#`"`"d(#.hh?` (#` (##73 -p&2 0  0` (#(#5. UseoftheTerm"Subscriber"#`"`"d(#.>` (#` (##80 .8'3   D. ` ExtensionoftheCommission'sVerificationRulestotheLocalMarket`"`"d(#.$$_81 /(4 0  0` (#(#1. ApplicationoftheVerificationRulestotheLocalMarket#`"`"d(#.[` (#` (##81 G0(5  8cXXdd8   0  0` (#(#2.0 ` (#` (#ApplicationoftheVerificationRulestoAllTelecommunicationsCarriers#`"`"d(#.d"d"j (# (##84  0  0` (#(#3.0 ` (#` (#TheStates'Role#`"`"d(#.2 (# (##86 G 0  E. ` SubmittingandExecutingCarriers#`"`"d(#.<(#(##91   0  0` (#(#1.0 ` (#` (#Definitionof"Submitting"and"Executing"Carriers#`"`"d(#.U (# (##91  X 0  0` (#(#2.0 ` (#` (#ApplicationofVerificationRulestoSubmittingandExecuting  (# (# 0  0` (#(#0 ` (#` (#Carrier#`"`"d(#. ) (# (##97 g  0  0` (#(#3.0 ` (#` (#ConcernswithExecutingCarriers#!!c(#.88B (# (##102 /      ` 0 a.0 (# (#InterferencewiththeExecutionProcess#!!c(#.ttO(#(##102  x 0  0` (#(#0 ` (#` (#b.  _Timeframe_ԀforExecutionofCarrierChanges#!!c(#.R (# (##104  @ 0  0` (#(#0 ` (#` (#c.  MarketingUseofCarrierChangeInformation#!!c(#.XXS (# (##106   0  F. ` PreferredCarrierFreezes#!!c(#.884(#(##112 O  0  0` (#(#1. Background#!!c(#.,` (#` (##112   0  0` (#(#2.0 ` (#` (#OverviewandJurisdiction#!!c(#.; (# (##113 `  0  0` (#(#3.0 ` (#` (#NondiscriminationandApplicationofRulestoAllCarriers#!!c(#.\ (# (##119 (  0  0` (#(#4.0 ` (#` (#SolicitationandImplementationofPreferredCarrierFreezes#!!c(#.^ (# (##121 o  0  0` (#(#5. ProceduresforLiftingPreferredCarrierFreezes#!!c(#.R` (#` (##127 7  0  0` (#(#6. InformationAboutSubscriberswithPreferredCarrierFreezes#!!c(#.^` (#` (##133   0  0` (#(#7.0 ` (#` (#WhenSubscribersChange_LECs_#!!c(#.> (# (##134 H  0  0` (#(#8. PreferredCarrierFreezesofLocalandIntraLATAServices#!!c(#.44[` (#` (##135  0  0` (#(#9.0 ` (#` (#LimitationonFreezeMechanismsforResoldServices#!!c(#.ttU (# (##138 W IV.  FurtherNoticeofProposed_Rulemaking_!!c(#.9139  0  A.0` (#(#RecoveryofAdditionalAmountsfromUnauthorizedCarriers#!!c(#.U` (#` (##140 h   B. ` Resellersand_CICs_!!c(#.DD-145 0 0  C.0` (#(#IndependentThirdPartyVerification#!!c(#.?` (#` (##165 w 0  D. ` CarrierChangesUsingtheInternet#!!c(#.88=(#(##169 ? 0  E.0` (#(#Definitionof"Subscriber"#!!c(#.ll5` (#` (##176  0  F.0` (#(#SubmissionofReportsbyCarriers#!!c(#.<` (#` (##179 P 0  G. ` RegistrationRequirement#!!c(#.TT3(#(##180  0  H.0` (#(#ThirdPartyAdministratorforExecutionofPreferredCarrierChangesand _ PreferredCarrierFreezes#!!c(#.884` (#` (##183 ' V.0  Conclusion#!!c(#. (#(##185 p VI.  ProceduralMatters!!c(#.  &186 8 0  A. ` FinalRegulatoryFlexibilityAnalysis#!!c(#.@(#(##186    0  B. ` InitialRegulatoryFlexibilityAnalysis#!!c(#.B(#(##222 G!! 0  C.0` (#(#InitialPaperworkReductionActAnalysis#!!c(#.HHC` (#` (##241 "" 0  D.0` (#(#FinalPaperworkReductionActAnalysis#!!c(#.A` (#` (##242 "X# 0  E.0` (#(#ExPartePresentations#!!c(#.hh1` (#` (##243 # $   F. ` PetitionsforReconsideration!!c(#.hh8244 g$% 0  G.0` (#(#CommentFilingProcedures#!!c(#.  4` (#` (##247 /%& VII.  OrderingClauses!!c(#.d d $252 %x' Appendices ' ) AmendedRuleshh\(#. AppendixA O( * ProposedRulespp\(#. AppendixB )!+ _Commenters_pp\(#.AppendixC )`",   I.INTRODUCTION  o+#.     2   1  .3   ` InthisSecondReportandOrderandSecondFurtherNoticeofProposed ,%0 _Rulemaking_Ԁ(Order),weadoptrulesproposedintheFirstFurtherNoticeofProposed -H&1 _Rulemaking_ԀandMemorandumOpinionandOrderonReconsideration(FurtherNoticeand .'2 Order)_    1      _Ԁtoimplementsection258oftheCommunicationsActof1934(Act),asamendedbythe  TelecommunicationsActof1996(1996Act)._!0   2      _ԀSection258makesitunlawfulforany G telecommunicationscarrierto"submitorexecuteachangeinasubscriber'sselectionofaprovider   oftelephoneexchangeserviceortelephonetollserviceexceptinaccordancewithsuch  X verificationproceduresastheCommissionshallprescribe.""   3      ׀Thegoalofsection258andthis   Orderistoeliminatethepracticeof"slamming."Asubscribermayauthorizeachangeofhisor g  herlongdistancecarrier,orothertelecommunicationscarrier,byrequestingthechangedirectly /  fromhisorherlocalexchangecarrier(LEC),orbyauthorizingthenewcarriertorequesta  x changeonhisorherbehalf.Slammingoccurswhenacompanychangesasubscriber'scarrier  @ selectionwithoutthatsubscriber'sknowledgeorexplicitauthorization.Slammingnullifiesthe   abilityofconsumerstoselectthetelecommunicationsprovidersoftheirchoice.Slammingalso O  distortsthetelecommunicationsmarketbecauseitrewardsthosecompanieswhoengagein   deceptiveandfraudulentpracticesbyunfairlyincreasingtheircustomerbaseattheexpenseof `  thosecompaniesthatmarketinafairandinformativemanneranddonotusefraudulentpractices. (    2   2  .3   ` Thenumerouscomplaintswecontinuetoreceiveandtheinputofthestate 7  commissionsandthestateattorneysgeneralprovideampleevidencethatslammingisan   extremelypervasiveproblem._#X    4      _ԀIndeed,slammingissorampantthatitgarneredsignificant H  attentioninCongressin1998duringthepostlegislativesession,althoughultimatelynolegislation  waspassed._$   5      _ԀDespitetheCommission'sexistingslammingrules,ourrecordsindicatethat W slamminghasincreasedatanalarmingrate.In1997,theCommissionprocessedapproximately  20,500slammingcomplaintsandinquiries,whichisanincreaseofapproximately61%over1996 h  andanincreaseofapproximately135%over1995.%x   6      ׀FromJanuarytothebeginningofDecember 0 1998,theCommissionprocessed19,769slammingcomplaints.&   7      ׀Furthermore,thenumberof   slammingcomplaintsfiledwiththeCommissionisamerefractionoftheactualnumberof G slammingincidentsthatoccur.'8   8      ׀     2   3  .3   ` TheCommissionrecentlyhasincreaseditsenforcementactionstoimposesevere   financialpenaltiesonslammingcarriers.SinceApril1994,theCommissionhasimposedfinal g  forfeiturestotaling$5,961,500againstfivecompanies,enteredintoconsentdecreeswitheleven /  companieswithcombinedpaymentsof$2,460,000,andhasproposed$8,120,000inpenalties  x againstsixcarriers.(P   9      ׀Additionally,theCommissionmaysanctionacarrierbyrevokingits  @ operatingauthorityundersection214oftheAct._)h   10      _ԀTheCommissionrecentlyhasresortedtosuch   sanctionsagainstcarriersforrepeatedslammingandotheregregiousviolationsoftheActandour O  rules.*(    11      ׀     2   4  .3   ` ThenewrulesweadoptinthisOrderarenotmerelyintendedtoconformour (  existingruleswiththeprovisionsofsection258,butalsooperatetoestablishanew o  comprehensiveframeworktocombataggressivelyanddeterslamminginthefuture._+    12      _ԀWithour 7  newrules,weseektocloseloopholesusedbycarrierstoslamconsumersandtobolstercertain   aspectsoftherulestoincreasetheirdeterrenteffect.Attheheartofthenewslammingrulesis H  ourdeterminationtotaketheprofitoutofslamming.Ournewrulesabsolvesubscribersof  liabilityforsomeslammingchargesinordertoensurethatcarriersdonotprofitfromslamming W activities,aswellastocompensatesubscribersfortheconfusionandinconveniencethey  experienceasaresultofbeingslammed.Asanadditionaldeterrent,westrengthenour h verificationproceduresandbroadenthescopeofourslammingrules. 0   2   5  .3   ` Ournewrulesstrengthentherightsofconsumersinthreeareas:(1)therelief ? giventoslammingvictims;(2)themethodbywhichacarriermustobtaincustomerverificationof  preferredcarrierchangerequests;and(3)themethodbywhichaconsumercan"freeze"hisorher P existingcarrier,thusprohibitinganothercarrierfromclaimingthatithasbeenauthorizedto  requestacarrierchangeonbehalfoftheconsumer.Morespecifically,withrespectto _  compensation,underournewrulesasubscriberwillbeabsolvedofliabilityforallcallsmade ' within30daysafterbeingslammed._,   13      _ԀIfhowever,thesubscriberfailstonoticethatheorshehas   beenslammedandpaystheunauthorizedcarrierforsuchcalls,section258(b)oftheActrequires G theunauthorizedcarriertoremitsuchpaymentstotheauthorizedcarrier.-0   14      ׀Uponreceiptofthis   amount,theauthorizedcarriershallprovidethesubscriberwitharefundorcreditofanyamounts  X thesubscriberpaidinexcessoftheauthorizedcarrier'srates..   15      ׀Theunauthorizedcarriermust   alsopaytheauthorizedcarrierforanyexpensesincurredbytheauthorizedcarrierinrestoringthe g  subscriber'sserviceorincollectingchargesfromtheunauthorizedcarrier./   16      ׀Theseliabilityrules /  willnottakeeffectfor90days,howevertoenableinterestedcarrierstodevelopandimplementan  x alternativeindependententitytoadministercompliancewiththeserulesontheirbehalf.0   17      ׀If  @ carrierssuccessfullyimplementsuchaplan,wewillentertaincarriers'requestsforwaiverofthe   administrativerequirementsofourliabilityrules.1    18      ׀ O    2   6  .3   ` ThisOrderalsomodifiesthemethodsbywhichacarriercanfulfillitsobligationto `  obtainconsumerverificationofcarrierchangerequests.Inparticular,weeliminatethe"welcome (  package"2   19      ׀asaverificationoptionbecausewefindthatithasbeensubjecttoabusebycarriers o   engagedinslamming.3   20      ׀Alsoinconnectionwithverification,we(1)extendourverificationrules 7  _toapplytocarrierchange4   21      ׀requestsmadeduringconsumerinitiated(inbound)callstocarriers,5   22         ratherthanbeingapplicablesolelytooutboundcallsmadebycarrierstoconsumers;(2)extend G ourverificationrulestoapply,withalimitedexception,toalltelecommunicationscarriersin   connectionwithchangesofalltelecommunicationsservice,includinglocalexchangeservice;6(   23      ׀and  X (3)clarifythatallcarrierchangesmustbeverifiedinaccordancewithoneoftheoptionsprovided   inourrules,regardlessofthemannerofsolicitation.78   24      ׀Finally,wesetforthrulesgoverningthe g  preferredcarrierfreezeprocess,includingverificationrequirementsforimposingafreezeand /  mandatingcertainmethodsforliftingafreeze.8   25        x   2   7  .3   ` ThisOrderalsocontainsaFurtherNoticeofProposedRulemaking,inwhichwe   proposeseveraladditionalchangestofurtherstrengthenourslammingrulesandotherwise O  preventslamming.Inparticular,weseekcommenton:(1)requiringunauthorizedcarriersto   remittoauthorizedcarrierscertainamountsinadditiontotheamountpaidbyslammed `  subscribers;(2)requiringresellerstoobtaintheirowncarrieridentificationcodes(CICs)to (  preventconfusionbetweenresellersandtheirunderlyingfacilitiesbasedcarriers;(3)modifying o  theindependentthirdpartyverificationmethod9h   26      ׀toensurethatitwillbeeffectiveinpreventing 7  slamming;(4)clarifyingtheverificationrequirementsforcarrierchangesmadeusingtheInternet;   (5)definingtheterm"subscriber"todeterminewhichpersonorpersonsshouldbeauthorizedto H  makechangesintheselectionofacarrierforaparticularaccount;(6)requiringcarrierstosubmit  totheCommissionreportsonthenumberofslammingcomplaintsreceivedbysuchcarriersto W alerttheCommissionassoonaspossibleaboutcarriersthatpracticeslamming;(7)imposinga  registrationrequirementtoensurethatonlyqualifiedentitiesenterthetelecommunications G market;(8)implementingathirdpartyadministratorforexecutionofpreferredcarrierchanges   andpreferredcarrierfreezes.  X   2   8  .3   ` Weemphasizethatthewaytoattacktheslammingproblemistocombatiton g  severalfronts:improvingtheverificationrules,imposingforfeituresandcreatingotherfinancial /  disincentivesforunscrupulouscarriers,andincreasingconsumerawareness.Inadditionto  x prescribingrulestoeliminateslamming,theCommissionwillcontinuetometeoutswift,  @ meaningfulpunishmentforcarriersthatslamsubscribers.Furthermore,theCommissionwill   continuetoworkwiththestatestoalertconsumersaboutslammingandother O  telecommunicationstrendsthatmayaffectthem,sothatconsumerscanprotectthemselvesfrom   thesepractices.:   27       `    II.BACKGROUND  o      2   9  .3   ` TheCommissionfirstestablishedsafeguardstodeterslammingwhenit   implementedequalaccessrequirementsin1985.Equalaccess,whichfacilitatedtheentryof H  multiplecompetitorsintothelongdistanceservicemarketfollowingthedivestitureofAmerican  Telephone&TelegraphCompany(AT&T),allowssubscriberstoaccessthefacilitiesofa W designatedIXCbydialing"1"only,ratherthanhavingtodialamultidigitaccesscodeforsome  IXCs.;   28      AtthetimeofthedivestitureofAT&T,IXCsbegantocompeteforpresubscription h agreementswithpotentialcustomers.<    29      ׀Slammingdidnotoccurpriortotheadventof 0 competitioninthelongdistancetelephonemarketplacebecauseconsumersdidnothaveany w choicesinlongdistanceservice.Wenotethatslammingdoesnotincludeinstanceswherea ? subscriberisdroppedfromacarrier'sservice,forreasonssuchasnonpaymentofservice,andends  upnotbeingpresubscribedtoanycarrier.Eventhoughthismaybea"change"inasubscriber's P carrier,thesubscriberhasnotbeenchangedtoanewcarrierandthereforehasnotbeenslammed.    2   10  .3   ` TheCommission'soriginalapproachrequiredIXCstoobtainwrittenlettersof ' agency(LOAs)=    30      ׀authorizingtheIXCtorequestonbehalfofasubscriber,achangeinthe p subscriber'spreferredinterexchangecarrier.>    31      ׀Becausesomecarrierscontinuedtoengagein 8 slamming,however,theCommissionin1992adoptedproceduresforverificationoftelemarketing  salesoflongdistanceservices.?   32      ׀In1995,theCommission,onitsownmotionandinresponseto G continuingcomplaintsfromconsumersregardingslammingbyIXCs,adoptedrulesestablishing   furtherantislammingsafeguardstodetertheuseofmisleadingLOAs.@   33      ׀The1995Reportand  X OrderspecificallyprohibitedthepotentiallydeceptiveandconfusingpracticeofcombiningLOAs   withpromotionalmaterials,suchassweepstakesentryforms,inthesamedocument.A   34      ׀The1995 g  ReportandOrderalsoprescribedtheminimumcontentofLOAs,requiredthattheLOAbe /  writteninclearandunambiguouslanguage,prohibited"negativeoption"LOAs,Bh   35      ׀andrequired  x thatLOAscontaincompletetranslationsiftheyemploymorethanonelanguage.C   36      ׀IntheFurther  @ NoticeandOrder,theCommissionclarifiedthatcarriersusingLOAsmustfullytranslatetheir   LOAsintothesamelanguage(s)astheirassociatedpromotionalmaterialsororaldescriptionsand O  instructions.D    37           2   11  .3   ` TheCommission'scurrentslammingrules,whichapplyonlytolongdistance (  carriers,requiresuchcarrierstofirstobtainauthorizationfromsubscribersforpreferredcarrier o  changesandthentoverifythatauthorization.E`    38      ׀ThecurrentrulesalsorequireIXCstoverifyall 7  PICchangesusingeitherawrittenLOAF    39      ׀or,ifthecarrierhasusedtelemarketingtosolicitthe   customer,oneofthefollowingfourprocedures:(1)obtainanLOAfromthesubscriber;(2) H  receiveconfirmationfromthesubscriberviaacallfromthesubscribertoatollfreenumber  providedexclusivelyforthepurposeofconfirmingchangeorderselectronically;G@   40      ׀(3)usean W independentthirdpartytoverifythesubscriber'sorder;or(4)sendaninformationpackage,also  knownasthe"welcomepackage,"thatincludesapostagepaidpostcardwhichthesubscribercan h usetodeny,cancel,orconfirmaserviceorder,andwait14daysaftermailingthepacketbefore 0 submittingthePICchangeorder.H   41      ׀Acarrierthatmakesunauthorizedchangestoasubscriber's w selectionoftelecommunicationsproviderandchargesrateshigherthanthatoftheauthorized ?  carriermustreratethatsubscriber'sbilltoensurethatthesubscriberpaysnomorethanwhathe  orshewouldhavepaidtheauthorizedcarrier.I   42      ׀Theunauthorizedcarriermustalsopayforany   carrierchangechargesassessedbytheLEC.J8   43       G   2   12  .3   ` Aspartofthe1996Act,Congressforthefirsttimeestablishedaspecificstatutory  X prohibitionagainst"slamming."Section258(a)oftheActmakesitunlawfulforany   telecommunicationscarrierKP   44      ׀to"submitorexecuteachangeinasubscriber'sselectionofa g  provideroftelephoneexchangeserviceortelephonetollserviceexceptinaccordancewithsuch /  verificationproceduresastheCommissionshallprescribe."LX    45      ׀Thesectionfurtherprovides:  x 8  Anytelecommunicationscarrierthatviolatestheverificationproceduresdescribed   insubsection(a)andthatcollectschargesfortelephoneexchangeserviceor O  telephonetollservicefromasubscribershallbeliabletothecarrierpreviously   selectedbythesubscriberinanamountequaltoallchargespaidbysuchsubscriber `  aftersuchviolation.M    46      (    Theenactmentofsection258bythe1996Actnecessitatesthatwereexamineourexisting 7  slammingrulestoensurethattheyconformwithCongress'directives.The1996Actisintended,   interalia,toencouragecompetitionintheprovisionoflocalexchangeservicesandfurther H  enhancecompetitioninthelongdistancemarket.Intheenvironmentcreatedbythe1996Act,  LECs,IXCs,andothercarrierswillcompetewitheachothertoprovidelocalexchange, W intraLATAtoll,interLATAtoll,intrastate,andinterstateservices.N8    47      ׀Furthermore,becauseLECs  willbecompetingwithothercarriersforconsumers'localandlongdistanceservices,LECsmay  notbeneutralthirdpartiesinimplementingcarrierchanges.Becausetheantislamming G provisionsofsection258applytoalltelecommunicationscarriers,wemustassesswhether   existingsafeguardsagainstslammingareadequateinamarketplaceinwhichcarrierscancompete  X forlocalaswellaslongdistanceservicecustomers,andwheretheremaynolongerbea   disinterestedpartyexecutingchangesinsubscribers'telecommunicationscarriers. g    III.DISCUSSION   x       2   13  .3   ` Untilnow,oureffortstodeterslamminghaveconcentratedonenhancingthe   verificationofcarrierchangesandonissuingmonetaryforfeituresagainstcarrierswhoviolateour O  verificationrules.Despitethesafeguardsestablishedbyourexistingrules,however,theproblem   ofslamminghascontinuedtogrow.Whilesomeunauthorizedchangesmaybeinadvertent,O0   48      ׀and `  whileitistooearlytomeasuretheimpactofourrecentlyheightenedprosecutionofslamming (  carriers,ourexperienceinthisarealeadsustotheinescapableconclusionthatslamminghas o  becomeaprofitablebusinessformanycarriers.Forthisreason,therulesweadoptinthisOrder 7  notonlyseektostrengthentheexistingverificationrules,butaremorebroadlydesignedto   preventcarriersfrommakinganyprofitswhentheyslamconsumers. H    2   14  .3   ` Anessentialelementofthiseffortistheadoptionofrulesabsolvingconsumersof W liabilitytoslammingcarriersforchargesincurredforalimitedperiodoftimeafteran  unauthorizedchange.Whereasubscriberdoespaytheslammingcarrier,section258requiresthe h slammingcarriertopaythechargesitcollectsfromtheslammedsubscribertotheproperly 0 authorizedcarrier.P   49      ׀Hence,carriersthatviolateourverificationprocedureswilleitherbe w deprivedof,orberequiredtoforfeit,revenuestheyheretoforehavebeenabletokeep.Q   50      ׀Wehave ? seenmanycaseswhereunscrupulouscarriershavegeneratedhugeprofitsthroughslamming,only  todisappearordeclarebankruptcywhenfinallycaught.Onewaytodeterthisbehavioristo P ensurethatthesecarriersneverreceiveanymoneyfromslammedconsumersinthefirstinstance.  Moreover,evenwherecarriershavenotengagedinanintentionalpatternofslamming,the _ strongestincentiveforsuchcarrierstoimplementstrictlyourverificationrulesistoknowthat ' failuretocomplymaymeanthattheywillnotgetpaidforanyservicesrenderedafteran p unauthorizedswitch. 8   2   15  .3   ` Ournewrulesconfronttheproblemofslamminginthreewaysby(1)adopting G!! liabilityprovisionsthattaketheeconomicincentiveoutofslamming;(2)adoptingmorestringent "" verificationrequirements;and(3)broadeningthescopeofourrules.Weconcludethatthis "X# rigorousapproachwillcombateffectivelytheslammingprobleminthelongdistance # $ telecommunicationsmarket,aswellaspreventslammingoccurrencesascompetitiondevelopsin g$% thelocalexchangeandintraLATAtollmarkets.Themajorityofcommenterssupportour  approachasoutlinedintheFurtherNoticeandOrder.Somecommenterscontendthatweshould G notadoptadditionalslammingruleswithoutfurtheranalysisofthecausesofslamming.R   51      ׀Our   experiencewithconsumerslammingcomplaints,however,aswellastheverythoroughrecord  X thathasbeencompiledinthisdocket,havesupplieduswithabundantevidenceconcerningthe   problemandcausesofslammingtoadopttherulescontainedherein. g    2   16  .3   ` Weemphasizethattherulesweadoptstrikeabalancebetweenourgoalsof  x protectingconsumersandofpromotingcompetition.Rulesthatmakeitmoredifficultforcarriers  @ toslamconsumersmayalsomakeitmoredifficultforcarrierstogainnewsubscribersina   legitimatemanner.Nonetheless,ourultimateconcerninthisproceedingisprotectingconsumers O  andconsumerchoice.Wecannotallowthisfraudulentpracticetogrowunabatedasithasin   recentyears.Moreover,forhealthycompetitiontoflourish,consumerchoicemustbeprotected `  vigorously.Thus,theslammingrulesweadopthereinoperatetofostermeaningfulcompetition (  thatisnotattheexpenseofimportantconsumerprotection. o   A.  Section258(b)Liability      1. ` LiabilityoftheSlammedSubscriber      ` a. Background     2   17  .3   ` IntheFurtherNoticeandOrder,theCommissionstatedthatsection258(b)ofthe 0 Actmakesitclearthatanyunauthorizedcarrierisnotentitledtokeepanyrevenuegainedthrough w slamming.S   52      ׀TheCommissionnoted,however,thattheActdidnotaddresswhethersubscribers ? mustpayanyunpaidchargesassessedbyanunauthorizedcarriertotheproperlyauthorized  carrier,orwhetherchargescollectedfromtheunauthorizedcarriershouldbereturnedtothe P subscriberwhohasbeenslammed.TH   53      ׀Inthe1995ReportandOrder,theCommissionsupported  thepolicyofallowingunauthorizedIXCstocollectfromtheconsumertheamountofchargesthe _ consumerwouldhavepaidifthepreferredcarrierhadneverbeenchanged.U   54      TheNational ' AssociationofAttorneysGeneral(NAAG),initspetitionforreconsiderationofthe1995Report p andOrder,urgedtheCommissiontoconsiderabsolvingslammedconsumersofallliabilityfor 8 chargesassessedbyunauthorizedIXCs.V    55      ׀InthesubsequentFurtherNoticeandOrder,the    Commissionconcludedthatitdidnothavesufficientinformationtodeterminewhethertotal G!!  forgivenessofchargeswouldfurtherdeterIXCsfromslammingandsoughtfurthercomment_on "" theissue._W   56      _      ` b. Discussion      2   18  .3   ` Ourexperiencewithslammingandthefailureofourexistingrulestostemthe   growthofthisfraudulentpracticeconvinceusthatstrongprophylacticmeasuresarenecessaryto g  ensurethatconsumers'choicesoftelecommunicationsserviceprovidersarerespected.We /  thereforeconcludethatsubscribersshouldnothavetopayforslammingcharges,achangethat  x shouldpreventcarriersfromgaininganyrevenuesfromslammingactivities.Moreover,  @ consumersdeservesomecompensationfortheinconvenienceandconfusiontheyexperiencefrom   beingslammed.Thereforeweadoptaruleabsolvingconsumersofliabilityforunpaidcharges O  assessedbyunauthorizedcarriersfor30daysafteranunauthorizedcarrierchangehasoccurred._X8   57      _Ԁ   Anycarrierthatthesubscribercallstoreporttheunauthorizedchange,whetherthatentityisthe `  subscriber'sLEC,unauthorizedcarrier,orauthorizedcarrier,isrequiredtoinformthesubscriber (  thatheorsheisnotrequiredtopayforanyslammingchargesincurredforthefirst30daysafter o  theunauthorizedchange.Y   58      ׀Ifasubscriberpayschargestohisorherunauthorizedcarrier, 7  however,suchsubscriber'sliabilitywillbelimitedtotheamountheorshewouldhavepaidthe   authorizedcarrier.Z   59      ׀Wenotethat,asexplainedfullyinthediscussiononThirdParty H  AdministratorforDisputeResolution,wedelaytheeffectivedateoftheliabilityrulesfor90days  toprovideinterestedcarriersanopportunitytoimplementadisputeresolutionmechanism W involvinganindependentadministrator.[   60          2   19  .3   ` Manystatecommissionsandconsumerprotectionorganizationssupportabsolving 0 theconsumerofliabilityforchargesincurredafterbeingslammed._\    61      _ԀWeagreewiththose w _commenters_,suchas_NCL_,_NAAG_,andtheVirginiaCommission,thatabsolvingslammed ? consumersofliabilityforchargeswilldiscourageslammingbytakingtheprofitoutofthis  fraudulentpractice.Specifically,ourliabilityrulesthatprovideforlimitedabsolutionfor P slammingchargeswilldeterslammingbyminimizingtheopportunityforunauthorizedcarriersto  physicallytakecontrolofslammingprofitsforanyperiodoftime._]    62      _ԀEventhoughsection258(b) _  requirestheunauthorizedcarriertoremittotheauthorizedcarrierallchargescollectedfromthe ' subscriber,^   63      ׀thisdoesnotmeanthattheunauthorizedcarrierwillbedeprivedofrevenue,northat   theauthorizedcarrierwillreceivesuchmoney.Several_commenters_Ԁstatethatabsolutionis G preferabletousingtheremedyinsection258(b)becausetheslammingcarrierislikelytorefuseto   remitrevenuestotheauthorizedcarrier.__8   64      _ԀInpractice,unscrupulouscarrierswillhavemany  X excusesfornotremittinganymoneytoauthorizedcarriers,includinggoingbankruptorsimply   disappearing._`   65      _ԀWehaveseenseveralcarriersgobankruptduringorafterourinvestigationsfor g  slammingviolations,_a   66      _Ԁandhaveconcernsthatsuchcarrierswillsimplyreappearinanother /  location,underadifferentname,andcontinuetoslamconsumers.Wehavealsoseencarriers  x changebusinesslocationsfrequentlyinordertoavoidliabilityforslamming.b   67      ׀Wefind,basedon  @ ourexperience,thatunscrupulouscarrierswillattempttotakesuchevasiveactionstoavoid   havingtopayfinancialpenaltiestoauthorizedcarriersforslamming._c    68      _ԀUnscrupulouscarriers O  wouldthereforebeabletocontinuetoprofitfromslammingifwerequiretheconsumertopaythe   unauthorizedcarrier.Eliminatingthecashflowtoslammingcarriersinthefirstinstanceprevents `  slammingcarriersfromkeepinganyslammingprofits. (    2   20  .3   ` Thisrulealsomakesslammingunprofitablebecauseitprovidesconsumerswith 7  incentivetoscrutinizetheirmonthlytelephonebillsearlyandcarefully.Byencouraging   consumerstopolicetheirowntelephonebills,thisruleenliststhepublic'shelpindetecting H  occurrencesofslamming._d   69      _ԀByprovidingsubscriberswitharemedythatiseasytoadminister,  i.e.,consumerssimplyrefusetopaytelephonebillscontainingslammingcharges,weprovidea W quickandsimpleprocesstostopslamming.Althoughrequiringconsumerstopaychargestotheir  authorizedcarrierswouldalsopreventslammingcarriersfromobtainingslammingprofits,this h wouldinvolveamorecomplicatedmechanism.Paymentofslammingchargestoauthorized 0 carriersattheratesoftheauthorizedcarrierswouldrequirereratingofbillsineveryinstanceof w slamming.Italsowouldresultintheauthorizedcarrierbeingpaidforservicesitneverprovided. ? Absolutionprovidesconsumerswiththeincentivetohelpthemselveswithaneasilyadministered  remedy.Forthesereasons,webelievethatabsolvingconsumersofliabilityforslammingcharges P  willbefarmoreeffectivethanrequiringthemtopaychargestotheirauthorizedcarriers,asmany  _commenters_Ԁsuggested._e   70      _     2   21  .3   ` Wealsochoosetoabsolveconsumersofliabilityforalimitedtimebecauseit   providessomecompensationtoconsumersforthetime,effort,andfrustrationtheyexperienceas  X aresultofbeingslammed,aswellasforthelossofchoiceandprivacy._f8   71      _ԀWefindthatconsumers   sufferagreatdealofconfusionandoutrageupondiscoveringthattheyhavebeenslammed.We g  furtherfindthataconsumeroftenexperiencesgreatdifficultyandinconvenienceincorrectingthe /  slammingsituationandbeingrestoredtohisorherrightfulcarrier.Becauseslamminginflicts  x theseburdensonconsumers,slammedconsumersshouldreceivereparationfortheirtroubles.  @   2   22  .3   ` Webalancethisneedtocompensatetheconsumer,however,againstthepossibility O  ofconsumersimproperlyreportingthattheywereslammedinordertoobtainfreetelephone   service.Thelikelihoodofthistypeoffraudisthemainobjectionofmostcarrierstoarule `  absolvingconsumersofliability._g   72      _ԀToaddresssuchconcernsaboutfraud,wepointoutthat (  subscribersmayonlybeabsolvedofliabilityiftheyhaveinfactbeenslammed.Carrierscan,as o  describedbelow,produceproofofvalidverificationtorefuteasubscriber'sclaimthatheorshe 7  wasslammed.Thisapproachhastheaddedbenefitofstrengtheningcarriers'incentivetocomply   strictlywithourverificationproceduresinordertoprotectthemselvesfrominappropriateclaims H  byconsumersthattheyhavebeenslammed.Ourruleswillmotivatecarriersthatsubmit  legitimatecarrierchangesnotonlytoverifycarrierchangesproperly,butalsotouseformsof W verificationthatprovidesolidevidencethataconsumerhasauthorizedandverifiedacarrier  change.h   73      ׀Specifically,wesetforthintheInvestigationandReimbursementProceduressectionof h thisOrderthemechanismbywhichacarriermayrefuteasubscriber'sclaimofbeingslammed.i0   74      ׀ 0   2   23  .3   ` IntheFurtherNoticeandOrder,theCommissionasked_commenters_Ԁtoconsider, ? ifsubscribersweretobeabsolvedofliabilityforunpaidcharges,whetheritshouldlimitthetime  duringwhichsubscriberswouldnotbeliableforcharges,anditaskedforrecommendations P regardingwhatthattimeshouldbe.j   75      ׀_Commenters_Ԁstatethatifconsumersaretobeabsolvedof  liabilityforchargesincurredafterbeingslammed,itshouldbeforonlyalimitedtime.k    76      ׀Weagree _ thatrestrictingtheperiodoftimeforwhichtheconsumerisabsolvedofchargesnotonlylimits ' opportunitiesforconsumerstotakepossibleunfairadvantageofcarriers,butalsoprovides p incentiveforconsumerstoreviewtheirbillscarefullyandpromptly.Welimittheabsolution 8  periodto30daysafteranunauthorizedchangehasoccurred.Severalcarrierssupporta30day    limittoabsolution._l   77      _ԀTotheextentthatthesubscriberreceivesadditionalchargesfromthe   slammingcarrierafterthe30dayabsolutionperiod,thesubscribershallpaysuchchargestothe G authorizedcarrierattheauthorizedcarrier'sratesaftertheauthorizedcarrierhasreratedsuch   charges.m(   78      ׀Inmostcases,theconsumerwilldiscovertheunauthorizedchangeuponreceiptofthe  X firstmonthlybillaftertheunauthorizedchangeoccurs,becausethatbillgenerallyprovidesthe   consumerwiththefirstnoticethatacarrierchangehasbeenmade._n   79      _ԀThebalancedapproachwe g  adopttodayencouragesconsumerstobecomemorevigilantindetectingslammingbygivingthem /  incentivetoreviewtheirtelephonebillscarefully.  x   2   24  .3   ` Thelimitationonabsolutionforthefirst30daysafteranunauthorizedchangemay   bewaivedbytheCommissionincircumstanceswhereitisnecessarytoextendtheperiodof O  absolutioninordertoprovideasubscriberwithafairandequitableresolution.Waiverofthe   Commission'srulesisappropriateonlyifspecialcircumstanceswarrantadeviationfromthe `  generalrule,andsuchdeviationwillservethepublicinterest.oX    80      ׀Asexplainedabove,weconclude (  thata30daylimitisreasonablebecausesubscribersgenerallydiscoverwithinonemonththatan o  unauthorizedchangehasoccurred.Thespecialcircumstancesthatmayaffectthisperiodof 7  absolutionwouldlikelybepracticesusedtodelaythesubscriber'srealizationofthecarrier   change.Forexample,awaiverofthe30daylimitmightbeappropriateifthesubscriber's H  telephonebillfailedtoprovidereasonablenoticetothesubscriberofacarrierchange,orifthe  slammingcarrierdidnothaveamonthlybillingcycle.Anotherfactorthatcouldextendthe W absolutionperiodwouldbeasituationinwhichtheslammingcarrierdidnotimmediatelybillthe  subscriberforcallsmade,butinsteadwithheldchargesforseveralmonthsandplacedallsuch h chargesonalaterbill,suchthatthesubscriberdidnotrealizethataslamoccurreduntilmonths 0 afterthefact.Wenote,however,thatweexpecttheseinstancestobeinfrequentandwillnot w grantwaiversofthe30daylimitunlesstherequestmeetsallofthecriteriaforwaivers. ?   2   25  .3   ` Werecognizethatin1995theCommissiondecidedthatslammedconsumers P shouldpaytheirunauthorizedcarriersforchargesincurredafterbeingslammedattheratethey  wouldhavepaidiftheunauthorizedchangehadneveroccurred._p    81      _ԀTheCommissionbasedits _ decisiononthefactthattheslammedsubscriberdoesreceiveaservice,eventhoughtheserviceis ' providedbyacarriernotoftheconsumer'schoosing.q8    82      ׀TheCommissionrecognized,however, p thatthissolution"maynotbethebestdeterrentagainstslamming...if'slamming'continues 8 unabated...wemayhavetorevisitthisquestionatalaterdate."r   83      ׀Becauseslammingcontinues  tobeamajorconsumerproblem,wenowfindthatourapproachtoconsumerliabilitymustbe G revised.Weconcludethatthemosteffectivedeterrenttoslammingistoabsolveconsumersof   liabilityforalimitedtime.Thiswilldepriveslammingcarriersofrevenuewhilecreating  X incentivesbothforconsumerstoreadtheirtelephonebillsandforcarrierstoensurethatcarrier   changesaremadeinaccordancewithourrules. g    2   26  .3   ` Severalcarriersarguethatslammedconsumersshouldpayallchargesbecause  x absolvingthemofliabilitywouldgiveconsumersawindfall._s8   84      _ԀWedisagree.Thisargumentfails  @ torecognizethatconsumerswhoareslammedhavesufferedboththepersonalintrusionofhaving   theirchoicesdenied,aswellastheimpositionofhavingtoremedytheunauthorizedchange.That O  is,theconsumerhasbeenthesubjectoffraud,orevenmistake,onthepartoftheunauthorized   carrieranddeservessomecompensationfortheintrusion,aswellasforthetimeandeffort `  expendedinreinstatingthepreferredcarrier. (    2   27  .3   ` Furthermore,weagreewiththose_commenters_Ԁthatstatethatalimitedabsolution 7  ruledoesnotsubstantiallyharmtheauthorizedcarrier,whohasnotprovidedservicetothe   slammedconsumerduringtheperiodofabsolution._tp   85      _ԀIntheFurtherNoticeandOrder,the H  Commissionsoughtcommentontheeffectofabsolvingslammedsubscribersofliabilityfor  unpaidcharges,inlightofthefactthattheauthorizedcarriermightbedeprivedofforegone W revenue.u   86      ׀Wenowconcludethat,althoughtheauthorizedcarrierisdeprivedofprofitsthatit  wouldhavereceivedbutfortheunauthorizedchange,italsohasnotactuallyprovidedanyservice h tothesubscriberanditappearsthattheauthorizedcarrierisnotoutofpocketformostcoststhat 0 itwouldhaveborneifithadinfactprovidedservice.Thisincludesnotonlythecostof w transmission,butothercostsofprovidingservice,suchasaccesschargesandotherfees.vP   87      ׀We ? emphasizethat,shouldtheauthorizedcarrierconcludethatitisentitledtoanycompensationfrom  theslammingcarrierthatitdoesnotreceiveunderourrules,suchaslostprofitsorother P damages,theauthorizedcarrierhasrecourseagainsttheslammingcarrierintheappropriate  forum,suchasbeforetheCommissionorinastateorfederalcourt._w    88      _ԀWeconcludethatthe _ approachtoliabilityweadopthereinstrikesareasonablebalancebetweentheinterestsofcarriers ' andconsumers.Wealsonotethat,intheFurtherNoticeofProposed_Rulemaking_Ԁsectionofthis p Order,weproposetopermittheauthorizedcarriertocollectfromtheslammingcarriereither: 8 (1)doubletheamountofchargespaidbyaslammedsubscriber,or(2)theamountforwhicha  subscriberhasbeenabsolvedofliability._x   89      _ԀThisproposalwouldprovidelimitedabsolutionforall G consumersthussatisfyingCongress'policythat"consumersbemadewhole"y   90      ׀whileatthe   sametimeensuringthatauthorizedcarriersarenoworseoffasaresultofanunauthorized  X change.     2   28  .3   ` Several_commenters_,includingAT&Tand_GTE_,statethatconsumersshouldpay /  forservicesreceivedinordertogiveeffecttotheremedyinsection258(b),whichrequires  x unauthorizedcarrierstogiveauthorizedcarriersallchargescollectedfromslammedsubscribers._zP   91      _Ԁ  @ Byitsterms,thatremedyappliesonlywhentheconsumerhasinfactmadepaymenttothe   unauthorizedcarrier.Section258(b)doesnotrequiretheconsumertopayeithertheauthorized O  carrierortheunauthorizedcarrier.{   92      ׀Asdiscussedinthefollowingsection,ifasubscriberdoes   payhisorherunauthorizedcarrier,theauthorizedcarrierwillbeentitledtocollectthatamount `  fromtheunauthorizedcarrierinaccordancewithsection258(b).Althoughwerecognizethat (  encouragingsubscribersnottopaytheslammingcarriermayreducetheamountsauthorized o  carriersmaycollectfromslammingcarrierspursuanttosection258(b),absolvingsubscribersof 7  theresponsibilitytopaytheirslammingcarriersinthefirstinstancedoesnotabrogatethesection   258(b)remedyforauthorizedcarriers. H    2   29  .3   ` Wedorecognizethatbyabsolvingtheconsumerofliabilityforacertainperiodof W time,ourremedygoesbeyondthespecificstatutoryremedythatisexplicitlysetforthinsection  258(b)oftheAct.Section258(b)alsostates,however,that"theremediesprovidedbythis h subsectionareinadditiontoanyotherremediesavailablebylaw."|0   93      ׀Absolvingslammed 0 subscribersofliabilityforalimitedperiodoftimeiswithintheCommission'sauthorityunder w section201(b)to"prescribesuchrulesandregulationsasmaybenecessaryinthepublicinterest ? tocarryouttheprovisionsof[the]Act,"aswellasundersection4(_i_)to"performanyandallacts,  makesuchrulesandregulations,andissuesuchorders,notinconsistentwith[the]Act,asmaybe P necessaryintheexecutionofitsfunctions."_}   94      _ԀPursuanttosuchauthority,wehavedetermined  thatthemosteffectivemethodofdeterringslammingistodeprivecarriersofrevenuefrom _ slammingbyabsolvingconsumersofliabilityfor30daysaftertheunauthorizedchange.Aswe ' havealreadystated,byenablingtheconsumertoforgopaymenttotheslammingcarrier,welimit p theopportunitiesforslammingcarrierstoprofitfromslamming.Furthermore,theabsolution 8 remedyweadoptisnotinconsistentwithsection258becausethesection258(b)remedyonly    appliestochargesthathavebeenpaidtotheslammingcarrieranddoesnotreferencechargesthat G!! havenotbeenpaid. ""   2   30  .3   ` Wealsorecognizethat,totheextentthatourrulespermitauthorizedcarriersto # $ collectsomecharges,attheirrates,forservicesprovidedbyslammingcarriersbeyondthe30day g$% absolutionperiod,theserequirementsarenotinaccordancewithSection203(c),whichrequires  carrierstocollectchargesinaccordancewiththeirfiledtariffs.~   95      ׀Becausetariffsonlypermit G carrierstocollectchargesforservicetheyactuallyprovide,ournewrulerequiringauthorized   carrierstocollectchargesforserviceprovidedbyslammingcarrierswouldnotbeinaccordance  X withtheirtariffs.Section10oftheAct,however,permitstheCommissiontoforbearfrom   applyingsection203tariffrequirementstointerstate,domestic,interexchangecarriersifthe g  Commissiondeterminesthatthreestatutoryforbearancecriteriaaresatisfied.   96      ׀Weconcludethat /  thesecriteriaaremet.  x   2   31  .3   ` First,wefindthatenforcementofsection203(c)inthisinstanceisnotnecessaryto   ensurethatthecharges,practices,classifications,orregulationsby,for,orinconnectionwiththat O  carrierorservicearejustandreasonableandarenotunjustlyorunreasonablydiscriminatory.   97      ׀   Thecircumstancesunderwhichwepermittheauthorizedcarriertocollectchargesthatarenotin `  accordancewithitstariffareverylimited.Infact,byrequiringthesubscribertopaythe (  authorizedcarrierratherthantheslammingcarrier,ourrulehelpstodetertheunlawful,unjust, o  andunreasonablepracticesofslammingcarriersbypreventingthemfrommakingprofitsfrom 7  slammedconsumers.Undertheselimitedcircumstances,ourruleisnotnecessarytoensurethat   theauthorizedcarrier'scharges,practices,classifications,orregulationsfrombeingjustand H  reasonable,andnotunjustlyorunreasonablydiscriminatory.    2   32  .3   ` Second,enforcementofsection203(c)underthesecircumstancesisnotnecessary  fortheprotectionofconsumers.`   98      ׀Onthecontrary,requiringsubscriberstopaytheirslamming h carriersratherthantheirauthorizedcarrierswouldbeharmfultoconsumers.Ourruleoperatesto 0 protectconsumersfromtheabusivepracticesofslammingcarriersbydeprivingsuchcarriersof w slammingprofits.Thereforeenforcementofsection203(c)inthisparticularsituationisnot ? necessarytoprotectconsumers.    2   33  .3   ` Third,forbearancefromapplyingsection203(c)inthisinstanceisconsistentwith  thepublicinterest.    99      ׀Inmakingthisdetermination,section10(b)alsorequiresustoconsider _ whetherforbearancewillpromotecompetitivemarketconditions,includingtheextenttowhich ' forbearancewillenhancecompetitionamongprovidersoftelecommunicationsservices.@    100      ׀We p concludethatpermittingthesubscribertopaytheauthorizedcarrierforchargesimposedby 8 slammingcarriersafterthe30dayabsolutionperiodisconsistentwiththepublicinterest.    Slammingdistortscompetitioninthemarketplacebecauseitrewardscarrierswhoemployfraud G!! anddeceitovercarriersthatareconductinglawfulactivities.Slammingalsodeprivesaconsumer "" ofchoice.Becauseourruledetersslammingbymakingslammingunprofitable,itpromotesthe  publicinterest,includingenhancingcompetitionfortelecommunicationsservices. G   2. ` WhentheSlammedSubscriberPaystheUnauthorizedCarrier   X   2 !  34  .3   ` Weconcludedabovethataslammedsubscriberisnotliableforchargesincurred g  duringthefirst30daysafteranunauthorizedcarrierchange.   101      ׀Intheeventthatasubscriber /  neverthelesspaystheunauthorizedcarrierforslammingcharges,tworulesshallgovern.First,the  x unauthorizedcarrierisobligatedtoremittotheauthorizedcarrierallchargespaidbythe  @ subscriber.Second,afterreceivingthisamountfromtheunauthorizedcarrier,theauthorized   carriershallprovidethesubscriberwitharefundorcreditforanyamountsthesubscriberpaidin O  excessofwhatheorshewouldhavepaidtheauthorizedcarrierabsenttheunauthorizedchange.      ` a. LiabilityoftheUnauthorizedCarrier  (    2 "  35  .3   ` WeadopttheruleproposedintheFurtherNoticeandOrdertoprovidethatany 7  telecommunicationscarrierthatviolatestheCommission'sverificationproceduresandthat   collectschargesfortelecommunicationsservicefromasubscribershallbeliabletothesubscriber's H  properlyauthorizedcarrierinanamountequaltoallchargespaidbysuchsubscriberaftersuch  violation.Thisremedyisdirectedspecificallybythelanguageinsection258(b)oftheAct._8   102      _ԀAll W ofthepartiescommentingontheproposedrulesupportthisapproach._   103      _ԀConsistentwiththe  discussionabove,thisrulewillapplyinsituationsinwhichthesubscriberhaspaidchargestoan h unauthorizedcarrier. 0   2 #  36  .3   ` Wealsoimposecertainadditionalpenaltiesonunauthorizedcarriers.Asproposed ? intheFurtherNoticeandOrder,wealsorequiretheunauthorizedcarriertopayforreasonable  billingandcollectionexpenses,includingattorneys'fees,incurredbytheauthorizedcarrierin P collectingchargesfromtheunauthorizedcarrier._   104      _ԀSeveral_commenters_Ԁsupporttheimposition  oftheseadditionalpenalties._    105      _ԀAlthoughsection258onlyrequirestheunauthorizedcarrierto _ remittotheauthorizedcarrierallchargescollectedfromtheslammedsubscriber,weconclude ' thatwehaveauthoritytogranttheauthorizedcarrieradditionalremedies._    106      _ԀRequiringthe p unauthorizedcarriertopayforexpensesincurredbytheauthorizedcarrierincollectingcharges 8 fromtheunauthorizedcarrierensuresthattheauthorizedcarrierdoesnotsufferfurthereconomic  lossbecauseoftheunauthorizedchange,andaddsaneconomicincentivefortheauthorized G carriertoseekreimbursementforslamming.Additionally,sincetheruleincreasesthepenaltyfor   slamming,theunauthorizedcarriermayfacilitatereimbursementtotheauthorizedcarrierinorder  X toavoidpaymentofanyadditionalexpensesforbillingandcollection.Althoughseveral   _commenters_Ԁsupportthisrule,_   107      _Ԁseveralother_commenters_Ԁobject,arguingthatsuchexpenses g  wouldbedifficulttodetermine.8   108      ׀Wedisagreebecausewefindthatcarriersaresophisticated /  businessentitiesthatarewellawareoftheexpensesofcollection,includinglitigationcosts.  x Moreover,webelievethatcollectionexpenseslikelywillbecomestandardizedamongcarriersin  @ therelativelynearfuture.Moreimportantly,weconcludethatanunscrupulouscarriershould   bearfullfinancialresponsibilityforthecostsofitsunlawfulactions. O    2 $  37  .3   ` Wealsorequiretheunauthorizedcarriertopayfortheexpensesofrestoringthe `  subscribertohisorherauthorizedcarrier._   109      _ԀWehavepreviouslystatedthatwherean (  interexchangecarriersubmitsarequestthatisdisputedbyasubscriberandtheinterexchange o  carrierisunabletoproduceverificationofthatsubscriber'schangerequest,theLECmustassess 7  theapplicablechangechargeagainstthatinterexchangecarrier._   110      _ԀWecodifyandexpandour   priorrequirementtoencompassanycarrier,notjustaninterexchangecarrier,thatisunableto H  provideverificationofasubscriber'schangerequest.Byrequiringtheunauthorizedcarriertopay  thechangechargetotheauthorizedcarrier,weensurethatneithertheauthorizedcarriernorthe W subscriberincursadditionalexpensesinrestoringthesubscribertohisorherpreferredcarrier.  Furthermore,requiringtheunauthorizedcarriertopaytheseadditionalchargeswillserveasa h furtherdeterrenttounauthorizedchanges. 0   0 ` b. SubscriberRefundsorCredits ?` (#` (#   2 %  38  .3   ` Ournewruleswillenablesubscriberstopreventcarriersfromprofitingby P absolvingthemofliabilityforthefirst30daysafteranunauthorizedchange.Weconclude,  however,thatthespecificprovisionsofsection258(b)appeartopreventusfromabsolving _ consumersofliabilitytotheextentthattheyhavealreadymadepaymentstotheirunauthorized ' carriers._0   111      _ԀWeconcludethatCongressintendedthatsubscriberswhopayforslammingcharges p shouldpaynomorethantheywouldhavepaidtotheirauthorizedcarriersforthesameservice 8 hadtheynotbeenslammed._    112      _ԀIndeed,thelegislativehistoryreflectsCongressionalintentthat    "theCommission'srulesshouldalsoprovidethatconsumersbemadewhole."   113      ׀Thereforeour  ruleswillrequiretheauthorizedcarriertorefundorcreditthesubscriberforanychargescollected G fromtheunauthorizedcarrierinexcessofwhatthesubscriberwouldhavepaidtheauthorized   carrierabsenttheswitch.ThisapproachisconsistentwiththeCommission'scurrentrulesthat  X ensurethattheslammedsubscriberpaysnomoreforservicethanheorshewouldhavepaid   beforetheunauthorizedswitch.Furthermore,weconcludethatrequiringarefundoftheexcess g  amountspaidbythesubscriberdoesnotharmtheauthorizedcarrierwhohasinfactreceived /  paymentforservicethatitdidnotprovidetothesubscriber.Shouldtheauthorizedcarrier  x concludethatitissufferingsomefinancialharm,nothinginourruleswouldprecludethecarrier  @ fromfilingaclaimagainsttheunauthorizedcarrierforlostprofitsorotherdamages.P   114           2 &  39  .3   ` Werequiretheauthorizedcarriertorefundorcreditthesubscriberwithany   amountsthesubscriberpaidinexcessoftheauthorizedcarrier'srates,aftertheauthorizedcarrier `  hasreceivedfromtheslammingcarrierallamountspaidbythesubscribertotheslamming (  carrier.h   115      ׀Thiswillpreventtheslammedconsumerfrombeingfinanciallyharmedbythe o  unauthorizedchange,inaccordancewiththe