FCC Proposes $5.3 Million Fine for Slamming/Cramming

The U.S. Federal Communications Commission (FCC) has proposed a major fine against a Georgia company for allegedly switching consumers’ designated long-distance carriers without their permission (a practice known as “slamming”), and then adding additional, unauthorized charges to their telephone bills (“cramming”).

According to a Notice of Apparent Liability for Forfeiture issued in late April, the FCC has proposed a fine of just over $5.3 million against Tele Circuit Network Corporation, a non-facilities base interexchange carrier based in Duluth, GA and authorized by the Commission to provide domestic and international long distance telecommunications services. The proposed fine stems from an investigation by the Commission following complaints from consumers, state regulators and the Better Business Bureau that the company engaged in extensive slamming and cramming practices, most often targeted at low-income and senior citizens.

In addition to the illegal actions against consumers, the Notice also alleges that Tele Circuit, in responding to the Commission’s original 2017 Notice of Inquiry, provided fabricated recordings of consumers giving consent to the service changes and failed to respond fully to other aspects of the Commission’s request for information.

Read the text of the Commission’s Notice of Apparent Liability in connection with Tele Circuit.

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