14. Removing the Economic Incentive For Slamming

In its Report, Staff recommended that the Commission require carriers to refund all charges paid by customers who allege that they were transferred without authorization. GTE and other parties objected to this proposal due to its potential to entice unscrupulous customers to falsely allege that they were transferred without authorization.

In a recent rulemaking, the FCC has adopted a rule similar to that proposed by Staff. On December 17, 1998, the FCC adopted its "Second Report and Order and Further Notice of Proposed Rulemaking" in its docket, CC No. 94-129, which is addressing unauthorized changes to consumers' long distance carriers. The FCC decision addresses many of the issues that have been presented in this proceeding in addition to removing the economic incentive for slamming.

On May 18, 1999, the United States Court of Appeals for the District of Columbia Circuit issued a decision partially staying the FCC slamming rules. Those rules remain pending before the court.