Press Release

    Slamming refers to switching a customer’s long-distance telephone provider without the customer’s permission.

    The PUC found that AT&T switched the long-distance telephone service of Harriet and Jeremy Gaige without their authorization on four occasions in 1997 and that signatures on service agreements were not those of the couple.

    The PUC ruled that AT&T violated the Public Utility Code by not providing reasonable service. By law, the PUC may levy fines up to $1,000 for each day the offense continues. It was determined that an AT&T employee and an AT&T vendor, Campus Dimensions, submitted the service contracts to switch providers.

    In each instance, after being notified by the couple, AT&T switched the accounts back to the original long-distance company and credited their accounts. AT&T also dismissed the sales representative who made the unauthorized switch and terminated its vendor contract with Campus Dimensions.

    The fine is the first levied by the PUC against a telecommunications provider for slamming. It is part of an aggressive effort by the PUC to curtail slamming and cramming, which have steadily increased over the last few years as more telecommunications providers enter the competitive market. Cramming occurs when unauthorized, misleading or deceptive charges are included on a customer’s bill. Examples include charges for services that are explained only in general terms, such as "paging" or "voicemail."

    In 1998, the PUC processed more than 1,100 informal slamming complaints. In most instances, the offending company agreed to switch the customer back to his original long-distance telephone provider at no charge.

    In January, the PUC approved preliminary regulations aimed at protecting residential customers from slamming and cramming. The regulations ¾ voluntary at this point ¾ establish standard procedures for local telephone companies to follow when dealing with slamming and cramming complaints. For slamming complaints, companies are encouraged to switch the customer back to the original long-distance provider at no charge and "flag" the account at the customer’s request to prevent further switching without the customer’s authorization. For cramming, companies are asked to return the disputed charge to the service provider or its billing agent.

    The PUC’s Bureau of Consumer Services is available to assist consumers with slamming or cramming problems if they have been unsuccessful in resolving the problems with their local telephone company. Consumers can call 1-800-782-1110 for assistance.

    For additional press releases or more information about the PUC, visit our Internet homepage at: http://puc.paonline.com.