Firm Faces Possible ‘Slamming’ Sanctions

A San Diego phone company may face one of the harshest punishments yet for “slamming,” an illegal practice of switching customers to their service without the clients’ permission. The Public Utilities Commission is recommending that Communications Telesystems pay nearly $2 million in reparations. In addition, the 56,216 customers who complained they were slammed between 1994 and 1996 would share $1.9 million in damages. The PUC accused CTS of targeting Asian and Latino immigrants. The company denies any wrongdoing, but acknowledges that it focused marketing efforts on certain ethnic groups that are seen as “high-value” customers because of their greater propensity to make long-distance calls. If adopted by the five-member commission on April 23, the recommendation would bar CTS from doing business in the state for three years.