Qwest Agrees to Settle ‘Slamming’ Charges
As federal regulators approved a measure on Friday that will allow consumers to switch their long-distance service online, the No. 4 U.S. long-distance carrier agreed to pay $1.5 million to settle charges it switched customers without their permission.
The Federal Communications Commission also said Qwest Communications International Inc. had agreed to make the payment in the wake of numerous complaints that the company relied on forged authorization forms or letters to switch service.
The agency had sought $2.08 million in penalties last fall as the charges of the unauthorized switches, known as slamming, surfaced against Qwest and its merged partner, LCI International Telecom Corp.
Qwest also agreed to revise its protection programs to include financial penalties for slamming and increased third-party verification of customer orders, according to the FCC.
“These incidents occurred more than a year ago and we’ve fired the persons responsible for these violations and the agencies representing them were also let go,” said Tyler Gronbach, a spokesman for the Denver-based company.
“We have zero tolerance for slamming,” he said.
Qwest shares were down 63 cents to $55 on the New York Stock Exchange.
At the same time, in light of a new law that gave electronic signatures and documents the same force as paper counterparts, the FCC approved a rule that will allow consumers to use the Internet to authorize the switch of its long-distance service provider.
However, phone carriers must still offer the option of alternative authorization and verification methods such as written requests for change of service or independent third-party verification.
The FCC also adopted as part of its efforts to curtail slamming a a requirement that each carrier submit twice a year a report on the number of complaints it receives about slamming and refined the third-party verification process to ensure independence, efficiency and consistency.
The FCC has been cracking down on slamming, recently announcing a record $3.5-million settlement with WorldCom Inc. and a $2.4-million penalty against privately held Business Discount Plan Inc.
