The FCC Thursday approved a fine of more than $4 million against Tele Circuit Network Corporation, a telephone company that the agency alleges lied to elderly and infirmed consumers to persuade them to change carriers, and then placed unauthorized charges to their bills. According to the Commission, in some cases, the victims were left without telephone service for a long time while the company refused to reinstate service until the extra money was paid.
After receiving complaints, the FCC’s Enforcement Bureau investigated. The forfeiture order reaffirms much of the original proposed fine from 2018. It claims Tele Circuit Network Corporation engaged in “slamming,” switching consumers from their preferred carrier without permission, and “cramming,” placing unauthorized charges on those consumers’ bills.
During yesterday’s vote, FCC Acting Chairwoman Jessica Rosenworcel called the company’s actions “an especially ugly scam” and said its representatives had a “really deceptive sales pitch.”
“Today, we hold this company accountable for its mistreatment of consumers,” said Rosenworcel. “To anyone else using our nation’s phone systems to perpetuate this kind of scam, take note because our efforts won’t stop here.”
The agency said during its investigation, Tele Circuit “failed to fully respond to formal inquiries from the Commission.”
By Leslie Stimson, Inside Towers Washington Bureau Chief
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