FCC Record, Volume 19, No. 8, Pages 5879 to 6813, March 31 - April 13, 2004 Page: 5,891
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F C C s D 04450
of a provider of telephone exchange service or telephone toll service.4 In the Section 258 Order,
the Commission adopted aggressive new rules designed to take the profit out of slamming,
broadened the scope of the slamming rules to encompass all carriers, and modified its existing
requirements for the authorization and verification of preferred carrier changes. The rules
require, among other things, that a carrier receive individual subscriber consent before a carrier
change may occur.5 Pursuant to Section 258, carriers are absolutely barred from changing a
customer's preferred local or long distance carrier without first complying with one of the
Commission's verification procedures.6 Specifically, a carrier must: (1) obtain the subscribers
written or electronically signed authorization in a format that meets the requirements of
Section 64.1130 authorization; (2) obtain confirmation from the subscriber via a toll-free number
provided exclusively for the purpose of confirming orders electronically; or (3) utilize an
independent third party to verify the subscriber's order.7
3. The Commission also has adopted liability rules. These rules require the carrier
to absolve the subscriber where the subscriber has not paid his or her bill. In that context, if the
subscriber has not already paid charges to the unauthorized carrier, the subscriber is absolved of
liability for charges imposed by the unauthorized carrier for service provided during the first 30
days after the unauthorized change.8 Where the subscriber has paid charges to the unauthorized
carrier, the Commission's rules require that the unauthorized carrier pay 150% of those charges
to the authorized career, and the authorized carrier shall refund or credit to the subscriber 50% of
all charges paid by the subscriber to the unauthorized carrier.9 Carriers should note that our
actions in this order do not preclude the Commission from taking additional action, if warranted,
pursuant to Section 503 of the Act.'1
4. We received Complainant's complaint on August 2, 2002, alleging that
Complainant's telecommunications service provider had been changed to PowerNet without
Complainant's authorization. Pursuant to Section 1.719 and 64.1150 of our rules,'l we notified
PowerNet of the complaint and PowerNet responded on September 4,2003.12 PowerNet has
4 47 U.S.C. 258(a).
5 See 47 C.F.R. 64.1120.
6 47 U.S.C. 258(a).
7 See 47 C.F.R. 64.1120(c). Section 64.1130 details the requirements for letter of agency form
and content for written or electronically signed authorizations. 47 C.F.R. 64.1130.
See 47 C.F.R. 64.1140, 64.1160. Any charges imposed by the unauthorized carrier on the
subscriber for service provided after this 30-day period shall be paid by the subscriber to the authorized carrier at
the rates the subscriber was paying to the authorized carrier at the time of the unauthorized change. Id.
9 See 47 C.F.R. 64.1140, 64.1170.
10 See 47 U.S.C. 503.
47 C.F.R. 1.719 (Commission procedure for informal complaints filed pursuant to Section 258
of the Act); 47 C.F.R. 64.1150 (procedures for resolution of unauthorized changes in preferred carrier).
1 PowerNet's Response to Informal Complaint No. IC 02-S80269, September 4, 2003.
Federal Communications Commission
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United States. Federal Communications Commission. FCC Record, Volume 19, No. 8, Pages 5879 to 6813, March 31 - April 13, 2004, book, April 2004; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc4077/m1/32/: accessed April 30, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.