Press Release

    Harrisburg, PA – The Pennsylvania Public Utility Commission (PUC) today approved preliminary regulations to protect residential customers from increasing incidents of slamming and cramming in the telecommunications industry.

    "Slamming" refers to the unauthorized changing of a customer’s long-distance provider, or interexchange carrier (IXC). "Cramming" occurs when unauthorized, misleading or deceptive charges are included on a customer’s bill. Examples of cramming include charges for telecommunications services that are explained only in general terms, such as "paging" or "voicemail," or charges for club memberships, such as travel clubs.

    "Over the last year, hundreds of residential customers have filed informal complaints with the PUC regarding slamming and cramming offenses," said PUC Chairman John M. Quain. "Today’s action sends a clear message that the Commission will not tolerate these offenses and that we will take the necessary steps to safeguard the rights of Pennsylvania’s consumers."

    Today’s order establishes standard procedures for local telephone companies to follow when addressing slamming and cramming complaints.

    "We believe today’s action, coupled with recent federal initiatives, will go a long way toward identifying companies participating in unfair and deceptive marketing," Quain said. "At the same time, it gives consumers the ability to challenge improper charges."

    In December 1998, the FCC adopted additional, more stringent rules to reduce and deter slamming. Under the new rules, customers who have had their telephone service provider changed without their consent do not have to pay the charges imposed for up to 30 days after the incident. The FCC also strengthened the verification procedures for carrier switches by requiring companies to obtain either a written letter authorizing the change or third-party verification of the switch. Customers may also call a toll-free number on their own to initiate a switch.

    In July 1998, the FCC issued voluntary Anti-Cramming Best Practices Guidelines, which were developed jointly by the local exchange companies which dealt most frequently with cramming complaints. Information on the FCC actions can be found on their Internet home page: http://www.fcc.gov or by calling (202) 418-0500.

    For recent news releases, or more information about the PUC, visit our Internet home page: http://puc.paonline.com.

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