FCC Proposes $3.56 Million Fine Against for Deceptive Slamming, Cramming, And Billing Practices

The Federal Communications Commission has proposed $3.56 million in fines against Consumer Telcom (CTI), for apparently engaging in deceptive marketing practices, changing consumers’ preferred long distance carriers without their authorization (“slamming”), billing consumers for unauthorized charges (“cramming”), and failing to describe telephone charges plainly and clearly as required by federal law.

Numerous consumers complained that CTI’s telemarketers had tricked them into believing that the telemarketers were calling on behalf of the consumers’ existing long distance providers. The consumers were then shocked to learn that CTI had switched their preferred long distance carrier and billed them for charges they had not authorized. In many cases, CTI apparently took advantage of consumers by masking the true purpose of the call and then profiting from their obvious confusion about the questions they were asked. Many of the deceived consumers were elderly, hearing impaired, or infirm.