Data Integration Systems and its subsidiaries hit with $11 million fine from the FCC tied to unauthorized charges, carrier switching, deceptive marketing
The Federal Communications Commission continues to levy fines against telecom operators accused of unsavory business practices, with the latest an $11 million slap against various business entities of Data Integration Systems.
The FCC found DIS entities Central Telecom Long Distance, Consumer Telecom and U.S. Telecom Long Distance participated in “cramming” unauthorized charges onto consumer telephone bills, “slamming” of consumers by switching their preferred phone carriers without authorization, deceptive marketing and violating the FCC’s truth-in-billing rules.
The FCC said its investigation into the California-based companies found telemarketers had falsely claimed they were calling on behalf of the consumers’ real telephone carrier about a change in existing service, then “misused consumers’ answers to switch their long distance carriers to one of the companies.” In instances where consumers became aware of the change and switched back to their preferred provider, the accused companies continued to charge a recurring monthly fee.
The FCC’s Enforcement Bureau said it reviewed more than 260 consumer complaints, with “many” submitted “by or on behalf of consumers who had neither heard of the companies nor intended to sign up for their services.”
“This isn’t rocket science: No consumer should be charged for phone services that they canceled or never requested in the first place,” said Travis LeBlanc, enforcement bureau chief at the FCC, in a statement. “Today’s fines make clear that we will aggressively prosecute those who ‘slam,’ ‘cram’ or otherwise abuse consumers by unlawfully charging them for services they didn’t want or request.”
The FCC earlier this year proposed fines totaling $29.6 million against four long-distance providers accused of slamming and cramming Hispanic consumers. The FCC accused OneLink Communications, TeleDias Communications, TeleUno and Cytel, which while operating separately are actually all related companies, of slamming and cramming practices. Federal regulators also said the companies “fabricated audio recordings that they then submitted to the FCC as ‘proof’ the consumers authorized these changes and charges.”
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