FCC Revises Anti-Slamming Rules

In January, the Federal Communications Commission released its fourth report and order modifying its rules against slamming, or unauthorized carrier changes - a move that should eliminate the confusing and disputable components of the verification process, thereby minimizing carriers' exposures to federal and state slamming liability.

The changes, which stem from proposals issued by the Commission as far back as 2003, will require carriers offering 1+ long-distance service to revisit their sales and verification scripts to ensure compliance when the changes take effect, which could be as early as the second quarter of 2008 (pending necessary approvals and publication in the Federal Register).

Specifically, the new rules modify the carrier change verification process to require the following:

1. Confirmation that the consumer understands specifically that a carrier change is being authorized.

2. Disclosure that completion of the verification will allow the carrier change to be effective.

3. That the date of each verification is obtained at the time of verification.

4. Confirmation that the consumer understands that the phrase “long-distance service” includes state-to-state and international long-distance.

Intent Confirmation. The revised rules address the commission’s concerns that some carriers are using misleading language to deceive consumers into believing that something other than a carrier change is being authorized (e.g., upgrade to existing service, bill consolidation service, etc.). Thus, the new rules will require that verifiers confirm the consumer understands the authorization is for a carrier change, and not just simply an upgrade or change to an existing service. Since the current rules already require confirmation that a consumer “wants to make the carrier change,” the new requirement is unlikely to necessitate a drastic change to verification scripts that do not characterize “carrier change” in a potentially misleading fashion. Further, the required confirmation -- like several of the other rule changes adopted by the FCC’s order -- could affirmatively benefit carriers in that it could aid in refuting false slamming claims by showing that the consumer had a clear understanding and intent to change carriers (as opposed to just upgrading an existing service).