Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, November 25, 1994 TAG: 9411250034
SECTION: NATL/INTL PAGE: A-1 EDITION: METRO
SOURCE: Associated Press WASHINGTON
DATELINE: LENGTH: Medium
Chip Ringo had a bit of a shock when he opened his October phone bill. It wasn't the $155 in charges that disturbed him, but the unauthorized switch to a different long-distance company.
Federal regulators say Ringo's experience is not uncommon.
More than 4,000 complaints about sudden switches have been logged at the Federal Communications Commission since 1992. That's when the FCC adopted rules designed to protect consumers from ``slamming'' - having their long-distance providers changed without permission.
Given the volume of complaints, the FCC is considering tougher regulations. An increasing number of complaints involve long-distance companies that use contests, prize giveaways, checks and other promotions to lure new customers.
In many of these cases, regulators say, people are unaware that by signing the contest form or consenting to a charitable donation, they have agreed to switch to another long-distance company.
If the authorization information is included on the form, they say, it often is buried somewhere in tiny print.
The form that led to the switch for Ringo was an offer of $50 to lure customers to AT&T. But Ringo said he never sent in the form.
Ringo, who was switched from MCI, said he called AT&T and told them he didn't authorize a change. Weeks went by.
In the end, AT&T recalculated the bill, reducing charges to reflect discounts Ringo would have received through MCI, he said.
Although he received an apology from AT&T, the company never explained why his service was switched.
AT&T spokesman Jim McGann told The Associated Press that the company had received an authorization form to switch service. But the form, McGann admitted, was signed by someone else, although it had Ringo's phone number.
``We want to protect consumers,'' FCC Chairman Reed Hundt said in an interview. ``There is not fair competition when companies play fraudulent games.''
One of the FCC's proposals would require long-distance companies to provide consumers a piece of paper authorizing a change in service that is separate from the promotional material.
Language explaining the authorization must be clear and the print must be big enough to read easily, the FCC said.
The proposed rules also would prohibit ``negative option'' forms. That's when customers are required to check a box if they don't want their long-distance company changed.
AT&T research shows an increasing number of ``slamming'' victims are member of ethnic groups, particularly Hispanics. So the FCC wants companies to provide authorization forms in several languages.
Consumers have to pay for long-distance calls carried by the unauthorized phone company. But the FCC also is reconsidering this as part of potential rule changes.
by CNB