FCC Says Clear Rate Resolved Slamming Case

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The FCC’s Consumer and Governmental Affairs Bureau resolved a complaint concerning the unauthorized change of a subscriber’s telecom carrier, a practice called “Slamming.”

The person who complained to the FCC alleged that Clear Rate, a provider of voice, internet and data services, called his mother “to see about switching phone and internet over to their company.” The man stated that his mother explained she would need to speak with him because the account is under his name.  

“I then called my mother’s current phone/internet provider (CenturyLink) only to find out that Clear Rate Communications had shut off the phone and internet and switched it over to their services,” the unnamed individual told the FCC.

The agency notified Clear Rate of the complaint. The telecom provided a third-party verification recording, but not a recording of the actual sales call, according to the Commission. Clear Rate then said all charges would be waived, the account closed, and no early termination fee assessed.

FCC rules prohibit slamming. The Commission’s implementing rules require that a carrier receive individual subscriber consent before the carrier change may occur. Specifically, a carrier must:

  • (1) obtain the subscriber’s written or electronically signed authorization in a format that satisfies agency rules;
  • (2) obtain confirmation from the subscriber via a toll-free number provided exclusively for the purpose of confirming orders electronically; or
  • (3) use an appropriately qualified independent third party to verify the order.

The Commission has also adopted rules to limit the liability of subscribers when an unauthorized carrier change occurs. It requires carriers involved in slamming practices to compensate subscribers whose carrier was changed without authorization.

Based on the record, the Commission said it appears Clear Rate has responded to the complaint and absolved the individual of all the fees the telecom assessed. The FCC now considers the matter closed.

By Leslie Stimson, Inside Towers Washington Bureau Chief

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