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FCC Seeks $29.6 Million Fine Against Phone Carriers For Alleged Cramming And Slamming

Federal communications Commission logo The U.S. Federal Communications Commission (FCC) seeks $29.6 million in fines against three phone providers for allegedly switching (a/k/a "slamming") consumers' long distance service without their consent, applying (a/k/a "cramming") unauthorized charges on their monthly bills, and obstructing the FCC investigation. The FCC press release stated:

"... the Commission asserts that OneLink Communications, Inc., TeleDias Communications, Inc., TeleUno, Inc., and Cytel, Inc., “slammed” consumers by switching their long distance carriers without authorization and “crammed” unauthorized charges onto consumers’ bills. In addition, it is alleged the companies, which operate as a single enterprise, fabricated audio recordings that they then submitted to the FCC as “proof” the consumers authorized these changes and charges... The FCC found that the companies’ apparent unauthorized charges and deceptive marketing calls constituted “unjust and unreasonable” practices under the Communications Act. The FCC also determined that the companies apparently violated federal law by submitting fake consumer authorizations and providing false and misleading information to the FCC during its investigation..."

OneLink Communications logo The FCC action included a Notice of Apparent Liability for Forfeiture. More than 140 consumers filed complaints with the FCC. There was an FCC order in August 2009 against TeleDias Communications for slamming. The OnelInk website lists an office in Tamarac, Florida. The Cytel, Inc. website lists an office in Pompano Beach. Florida. A check of both the Cytel or OneLink sites couldn't find lists of their executives or corporate officers.

How the companies allegedly performed deceptive marketing:

"Some consumers alleged that the companies’ telemarketers pretended to be from the post office calling about a nonexistent package delivery to obtain information to create fake consumer authorization recordings. In other cases, it appears the companies impersonated individuals in the authorization recordings. The companies then allegedly provided the fake authorizations to the FCC in response to its investigation into the consumer complaints. Even after consumers repeatedly contacted the companies about the alleged unauthorized charges and carrier switches, the companies purportedly refused to provide refunds until consumers filed complaints with the FCC, Better Business Bureau, or state regulators."

Kudos to the FCC for investigating the complaints. Kudos to consumers for filing complaints with the FCC, BBB, and state regulators when a company fails to do the right thing.

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