Citing consumer protection as a key priority, the Federal Communications Commission has stepped up the efforts of its newly formed Enforcement Bureau.
Most recently, a travel agency was fined $85,000 for sending junk faxes after ignoring an initial warning from the bureau, which has begun an intensive effort to shut down such faxes, Enforcement Bureau chief David Solomon said yesterday at the Direct Marketing Association Government Affairs Conference 2000 in Washington, DC.
In the telecommunications industry three fines were recently handed out totaling over $4 million, according to Solomon. To help deter slamming, the unauthorized switching of a prescribed long-distance carriers, the bureau adopted new rules at its April meeting. The rules have yet to be officially released.
Solomon said the rules require that a slammed customer does not have to pay the bill for 30 days and if the customer had already paid the bill, the unauthorized carrier must reimburse the authorized carrier and pay an additional 50% of the bill’s charges to the consumer.
Another action was taken against AT&T following a formal complaint when the telecommunications giant ignored a name on a do-not-call list but instead telemarketed to another member of the same household, Solomon said. He said do-not-call lists apply to entire households, not just an individual’s name.
Solomon said that while the agency has spent “lots of time” forming core rules, it is now making sure companies are following those rules.
He said the commission responds to 50,000 to 70,000 informal consumer complaints each year and another two to three dozen formal complaints from business competitors who often end up in court.
To aid its efforts, the bureau is setting up a shared database with the Federal Trade Commission and some of the states to share information on consumer complaints.
Enforcement includes warnings or fines of non-compliant companies.
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