82_FR_37985 82 FR 37830 - Protecting Consumers From Unauthorized Carrier Changes and Related Unauthorized Charges

82 FR 37830 - Protecting Consumers From Unauthorized Carrier Changes and Related Unauthorized Charges

FEDERAL COMMUNICATIONS COMMISSION

Federal Register Volume 82, Issue 155 (August 14, 2017)

Page Range37830-37838
FR Document2017-16961

In this document, the Commission proposes to amend its rules to prohibit carriers from misrepresenting themselves when placing telemarketing sales calls to consumers and placing unauthorized charges on their phone bills. The Commission seeks comment on ways to strengthen its rules to protect consumers from slamming and cramming and proposes to codify a rule prohibiting misrepresentations on carrier telemarketing calls to consumers that often precede a carrier switch, and proposes to codify a rule against cramming. The intended effect of this action is to prevent unscrupulous carriers from targeting vulnerable populations from committing fraud either on sales calls or when ``verifying'' a consumer switch.

Federal Register, Volume 82 Issue 155 (Monday, August 14, 2017)
[Federal Register Volume 82, Number 155 (Monday, August 14, 2017)]
[Proposed Rules]
[Pages 37830-37838]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-16961]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 64

[CG Docket No. 17-169; FCC 17-91]


Protecting Consumers From Unauthorized Carrier Changes and 
Related Unauthorized Charges

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: In this document, the Commission proposes to amend its rules 
to prohibit carriers from misrepresenting themselves when placing 
telemarketing sales calls to consumers and placing unauthorized charges 
on their phone bills. The Commission seeks comment on ways to 
strengthen its rules to protect consumers from slamming and cramming 
and proposes to codify a rule prohibiting misrepresentations on carrier 
telemarketing calls to consumers that often precede a carrier switch, 
and proposes to codify a rule against cramming. The intended effect of 
this action is to prevent unscrupulous carriers from targeting 
vulnerable populations from committing fraud either on sales calls or 
when ``verifying'' a consumer switch.

DATES: Comments are due on or before September 13, 2017, and reply 
comments are due on or before October 13, 2017.

ADDRESSES: You may submit comments identified by CG Docket No. 17-169 
and/or FCC Number 17-91, by any of the following methods:
     Electronic Filers: Comments may be filed electronically 
using the Internet by accessing the Commission's Electronic Comment 
Filing System (ECFS), through the Commission's Web site: http://apps.fcc.gov/ecfs/. Filers should follow the instructions provided on 
the Web site for submitting comments. For ECFS filers, in completing 
the transmittal screen, filers should include their full name, U.S. 
Postal service mailing address, and CG Docket No. 17-169.
     Mail: Parties who choose to file by paper must file an 
original and one copy of each filing. Filings can be sent by hand or 
messenger delivery, by commercial overnight courier, or by first-class 
or overnight U.S. Postal Service mail (although the Commission 
continues to experience delays in receiving U.S. Postal Service mail). 
All filings must be addressed to the Commission's Secretary, Office of 
the Secretary, Federal Communications Commission.
    For detailed instructions for submitting comments and additional 
information on the rulemaking process, see the SUPPLEMENTARY 
INFORMATION section of this document.

FOR FURTHER INFORMATION CONTACT: Kimberly A. Wild, Consumer Policy 
Division, Consumer and Governmental Affairs Bureau (CGB), at (202) 418-
1324, email: [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Rules 
and Policies Protecting Consumers from Unauthorized Carrier Changes and 
Related Unauthorized Charges, Notice of Proposed Rulemaking, document 
FCC 17-91, adopted on July 13, 2017, released on July 14, 2017. The 
full text of document FCC 17-91 will be available for public inspection 
and copying via ECFS, and during regular business hours at the FCC 
Reference Information Center, Portals II, 445 12th Street SW., Room CY-
A257, Washington, DC 20554. A copy of document FCC 17-91 and any 
subsequently filed documents in this matter may also be found by 
searching ECFS at: http://apps.fcc.gov/ecfs/ (insert CG Docket No. 17-
169 into the Proceeding block).
    Pursuant to 47 CFR 1.415, 1.419, interested parties may file 
comments and reply comments on or before the dates indicated on the 
first page of this document. Comments may be filed using ECFS. See 
Electronic Filing of Documents in Rulemaking Proceedings, 63 FR 24121 
(1998).
     All hand-delivered or messenger-delivered paper filings 
for the Commission's Secretary must be delivered to FCC Headquarters at 
445 12th Street SW., Room TW-A325, Washington, DC 20554. All hand 
deliveries must be held together with rubber bands or fasteners. Any 
envelopes must be disposed of before entering the building.
     Commercial Mail sent by overnight mail (other than U.S. 
Postal Service Express Mail and Priority Mail) must be sent to 9300 
East Hampton Drive, Capitol Heights, MD 20743.
     U.S. Postal Service first-class, Express, and Priority 
mail should be addressed to 445 12th Street SW., Washington, DC 20554.
    Pursuant to Sec.  1.1200 of the Commission's rules, 47 CFR 1.1200, 
this matter shall be treated as a ``permit-but-disclose'' proceeding in 
accordance with the Commission's ex parte rules. Persons making oral ex 
parte presentations are reminded that memoranda summarizing the 
presentations must contain summaries of the substances of the 
presentations

[[Page 37831]]

and not merely a listing of the subjects discussed. More than a one or 
two sentence description of the views and arguments presented is 
generally required. See 47 CFR 1.1206(b). Other rules pertaining to 
oral and written ex parte presentations in permit-but-disclose 
proceedings are set forth in Sec.  1.1206(b) of the Commission's rules, 
47 CFR 1.1206(b).
    To request materials in accessible formats for people with 
disabilities (Braille, large print, electronic files, audio format), 
send an email to: [email protected] or call CGB at: (202) 418-0530 
(voice), or (202) 418-0432 (TTY). Document FCC 17-91 can also be 
downloaded in Word or Portable Document Format (PDF) at: https://www.fcc.gov/document/fcc-proposes-rules-aid-investigation-threatening-calls.

Initial Paperwork Reduction Act of 1995 Analysis

    Document FCC 17-91 seeks comment on proposed rule amendments that 
may result in modified information collection requirements. If the 
Commission adopts any modified information collection requirements, the 
Commission will publish another notice in the Federal Register inviting 
the public to comment on the requirements, as required by the Paperwork 
Reduction Act (PRA). Public Law 104-13; 44 U.S.C. 3501-3520. In 
addition, pursuant to the Small Business Paperwork Relief Act of 2002, 
the Commission seeks comment on how it might further reduce the 
information collection burden for small business concerns with fewer 
than 25 employees. Public Law 107-198, 116 Stat. 729; 44 U.S.C. 
3506(c)(4).

Synopsis

    1. All too often, unscrupulous carriers target Americans, including 
those within vulnerable populations like the elderly, recent 
immigrants, small businesses, and non-English speakers, to carry out 
unauthorized carrier changes, or ``slams.'' These carriers misrepresent 
who they are and why they are calling, fraudulently verify carrier 
changes, and add unauthorized charges, or ``crams,'' onto consumers' 
bills. Some sales agents pretend they are calling from a consumer's 
existing carrier, others pretend to call about a package delivery to 
record a consumer saying certain key phrases like their name and 
``yes.'' Still others bill for services never rendered or refuse to 
stop billing for new services even after a consumer terminates service.
    2. With document FCC 17-91, the Commission seeks comment on 
additional steps to protect consumers from slamming and cramming. The 
Commission seeks to strengthen its ability to take action against 
slammers and crammers, and deter carriers from slamming and cramming in 
the first place, without impeding competition or impairing the ability 
of consumers to switch providers.

Background

Slamming Rules

    3. Section 258 of the Communications Act of 1934, as amended 
(Communications Act or Act), makes it unlawful for any 
telecommunications carrier to ``submit or execute a change in a 
subscriber's selection of a provider of telephone exchange service or 
telephone toll service except in accordance with such verification 
procedures as the Commission shall prescribe.'' To further protect 
consumers from slamming and provide them with control over their 
service providers, the Commission's rules allow consumers to opt in to 
freeze their choice of carriers. At the same time, the rules do not 
allow for the executing carrier to verify that the subscriber wants to 
change carriers, so as to avoid undue delay in authorized switches. 
Finally, the Commission adopted rules for calculating slamming carrier 
liability.

Continuing Problem

    4. Notwithstanding the Commission's rulemaking and enforcement 
actions to date, slamming and cramming continue to be a problem. 
Slammers, or would-be slammers, have also crammed consumers as part of 
their fraud schemes. The Commission is cognizant that it must balance 
the benefits of the proposals in document FCC 17-91 against the burden 
they may place on legitimate carrier changes and third-party charges. 
The steps the Commission seeks comment on today to strengthen its rules 
seek to address the evolving practices of bad actors with respect to 
slamming and cramming, while not impeding competition or impairing the 
ability of consumers to switch providers.

Notice of Proposed Rulemaking

    5. In document FCC 17-91, the Commission seeks comment on ways to 
strengthen its rules to protect consumers from slamming and cramming. 
The Commission believes its legal authority stems directly from 
sections 201(b) and 258 of the Act. The Commission has based slamming 
and cramming rules on these provisions of the Act in the past. The 
Commission notes that section 258 of the Act is clear that carriers 
cannot execute switches unless they do so ``in accordance with such 
verification procedures as the Commission shall prescribe.'' The 
Commission believes the anti-slamming steps it proposes here are 
``verification procedures'' consistent with the authority specified in 
section 258 of the Act. Similarly, the Commission has found that both 
sections 201(b) and 258 of the Act support its truth-in-billing rules, 
including those to prevent cramming on consumers' bills. The Commission 
seeks comment on the nature and scope of its authority to adopt the 
rules it proposes in document FCC 17-91.

Banning Misrepresentation and Unauthorized Charges

    6. The Commission's recent enforcement actions reveal that a major 
source of slamming is deception in the sales calls. The Commission 
seeks comment on proposed new rules to address sales call abuses and 
further reduce slamming. The Commission's current rules contain 
detailed verification procedures, adopted under section 258 of the Act, 
that specify that carriers shall not submit or execute carrier changes 
without authorization from the subscriber and verification of that 
authorization. The Commission has previously held that 
misrepresentations on sales calls are an unjust and unreasonable 
practice and unlawful under section 201(b) of the Act. Although the 
Commission has in place verification rules to prevent slamming, its 
rules do not expressly ban carrier- or carrier-agent-misrepresentations 
on the sales calls that typically precede a slam. The Commission thus 
proposes to codify, pursuant to sections 258 and 201(b) of the Act, a 
new Sec.  64.1120(a)(1)(i)(A) of its rules banning misrepresentations 
on the sales calls and stating that any misrepresentation or deception 
would invalidate any subsequent verification of a carrier change, even 
where the submitting carrier purports to have evidence of consumer 
authorization (e.g., a TPV recording). The Commission believes 
codifying such a ban would provide even greater clarity to carriers and 
will aid its enforcement efforts. The Commission seeks comment on this 
proposal. Are there any potential downsides to a codified rule against 
sales call misrepresentation? The Commission notes that its slamming 
rules currently do not apply to CMRS, pre-paid wireless, or 
interconnected Voice over Internet Protocol (VoIP). Are such 
misrepresentations enough of a problem for CMRS, pre-paid wireless and 
interconnected VoIP and sufficient to justify extending its proposed 
rule to cover those services? Would such a rule

[[Page 37832]]

impose any burden on legitimate marketing? How should the proposed rule 
interact with existing State slamming rules?
    7. The Commission also proposes to codify a rule against cramming. 
While cramming has been a long-standing problem and the Commission has 
adopted truth-in-billing rules to help detect it, the Commission has 
never codified a rule against cramming. The Commission thus proposes to 
codify in a new Sec.  64.2401(g) of its rules the existing prohibition 
against cramming that the Commission has enforced under section 201(b) 
of the Act. The Commission believes codifying the cramming prohibition 
for wireline and wireless carriers would act as a deterrent. The 
Commission believes codifying a ban against cramming would provide even 
greater clarity to carriers and will aid its enforcement. The 
Commission seeks comment on this proposal. Are there any potential 
downsides to such a rule? The Commission's cramming rules currently do 
not apply to interconnected VoIP, and only some of the cramming rules 
apply to CMRS. Should the Commission extend this proposed rule to CMRS, 
pre-paid wireless and interconnected VoIP? Are there limitations on the 
Commission's ability to adopt the proposed cramming rule? Should this 
proposed rule be codified under the slamming rules as opposed to the 
cramming rules? The truth-in-billing rules do not define ``cramming'' 
or ``telephone bill.'' The Commission seeks comment on whether it 
should adopt such definitions for clarity of its rules. Many consumers 
today receive electronic bills and have constant online access to their 
telephone account showing in near real-time all fees, charges and 
assessments. If the Commission defines ``telephone bill'' in its rules, 
should it include the various ways that consumers can keep track of 
their telephone account activity?

PIC Freezes and Third-Party Billing

Preferred Carrier Freezes by Default

    8. The Commission's current rules allow consumers to protect 
themselves from slamming by ``freezing'' their choice of wireline 
providers if their local exchange carrier offers that ability. But to 
do so, a consumer must affirmatively opt in. Given the trend of 
consumers preferring to buy local and long-distance services together 
rather than separately, as well as emerging abusive practices in the 
market for resold local and long-distance services, the Commission 
seeks comment on making freezes the default so that consumers are 
automatically afforded additional protection against slamming, rather 
than requiring them to take extra steps to do so. The Commission 
believes this would give consumers more control to prevent slamming. 
Today, carriers must offer freezes for local, intraLATA and interLATA 
services and get separate authorization from consumers for each of the 
services the consumer chooses to freeze. A majority of consumers today 
purchase bundles of services rather than selecting individual services, 
and the Commission believes most consumers have no reason to 
distinguish interLATA and intraLATA services. The Commission seeks 
comment on eliminating the service distinctions for these purposes and 
having carrier freezes apply to all telephone services a consumer has 
with no need to seek separate authorization. The Commission believes 
consumers purchase CMRS and interconnected VoIP as all distance 
services and thus a default freeze does not make sense for these 
services. The Commission seeks comment on that view and whether it 
should consider extending default freezes to those services.
    9. If the Commission were to adopt a default freeze rule, should it 
apply to all local exchange carriers, or only those that currently 
offer freezes? What effect would the Commission's proposal have on 
carrier billing systems and sales practices? How should consumers be 
notified about this change to ensure they are fully aware of the 
default freeze? Should the Commission change its current requirements 
for notifying consumers about freezes, or relax those requirements? 
What procedures should be put in place to lift a default freeze? The 
Commission seeks comment on whether its freeze proposal would affect 
number exhaustion by incenting carriers to issue new numbers to 
consumers while waiting for the freeze to be lifted. The Commission's 
goals are to ensure that the default freeze is a strong safeguard 
against slamming while not unduly burdening consumers who may want to 
opt out of a freeze or giving executing carriers who may be losing the 
customer an opportunity to behave anti-competitively. The Commission 
seeks comment on how to achieve these goals along with whether carriers 
should be able to charge for freezes.
    10. What are the costs and benefits of a default freeze? For 
carriers that already offer consumers a freeze option, the cost to 
implement a default freeze should be relatively low, essentially 
changing a field in a preexisting database. For carriers that do not 
currently offer a preferred carrier freeze to their consumers, the 
implementation costs would presumably be greater. The benefits of a 
default freeze may be substantial, because would-be slammers would face 
significant obstacles to carrying out their intended slams. The 
Commission seeks comment on these views and ask commenters to provide 
details on costs and benefits of both implementing a default freeze and 
procedures to lift a default freeze. Can the Commission mitigate the 
costs by, for example, extending implementation deadlines and 
considering additional specific relief for smaller carriers? Could 
costs be further mitigated by applying a default freeze only to new 
customers and not existing ones? Should the Commission distinguish 
between smaller local exchange carriers and larger local exchange 
carriers in what rules should apply? What would be the cost savings for 
consumers and carriers in avoiding the expense and inconvenience of 
restoring service with their original carrier after a slam and seeking 
a refund for the unauthorized charges?

Blocking Certain Third-Party Billing by Default

    11. Today, the Commission's rules do not prohibit carriers from 
placing third-party charges on consumers' bills without verification by 
the consumer, a practice that has led to cramming. Consumers who do not 
have a preferred long-distance provider have been crammed when a third-
party carrier adds its long-distance service to the consumer's bill 
without authorization. Some consumers discover a slam and have their 
preferred carrier's service reinstated but are still billed by the 
slamming carrier for local or long-distance service.
    12. The Commission seeks comment on requiring wireline carriers to 
block third-party charges for local and long-distance service--a 
frequent source of slamming-related cramming--by default, and only bill 
such charges if a consumer opts in. Do consumers generally expect to be 
charged for local or long-distance service by third parties? What 
trends, if any, could inform the Commission's understanding of how 
consumers make choices in the market for telephone service? How 
prevalent are such third-party charges? Do the natural reductions in 
third-party billing as a result of market changes reduce the need for 
the type of rule the Commission proposes? The Commission notes that the 
vast majority of complaints and enforcement actions appear to target 
the billing practices of traditional local exchange carriers, not 
wireless carriers or interconnected VoIP providers. Is that because 
wireless

[[Page 37833]]

carriers and interconnected VoIP providers generally offer local and 
long-distance services as a bundle or for some other reason? 
Notwithstanding the lack of complaints and enforcement actions about 
CMRS and interconnected VoIP, the Commission seeks comment on whether 
it should extend its proposal to those services.
    13. How exactly should an opt-in process for third-party local and 
long-distance service work? For example, if a carrier offered its 
subscribers access to information about their account online, could a 
simple control be added so that consumers could opt in (or later opt 
back out) of third-party local and long-distance service billing? What 
opt-in options should be available for consumers that do not have 
Internet access? What information, if any, should be presented to 
consumers before they opt in to such third-party charges? Should opting 
in last indefinitely, or sunset after some period of time? Or could 
consumers opt in for only a single service change? How should consumers 
be made aware of the opt-in option? Should the Commission require 
providers to notify consumers at the point of sale? Should such notice 
appear on the provider's Web site and advertising materials or on 
consumers' bills? The Commission notes that several carriers have 
committed to blocking certain non-telecommunications third-party 
charges in the past. The Commission seeks specific comments on the 
processes they used to inform consumers about these changes.
    14. The Commission also seeks comment on several corner cases. For 
local exchange carriers that do not offer long-distance service, should 
opt in be required before any third-party long-distance service is 
charged to the consumer or only any change in third-party long-distance 
service? For consumers that currently subscribe to a third-party local 
or long-distance service, should those services be grandfathered? Or 
should those consumers be considered to have opted in already? And how 
should the Commission structure any rule to minimize the impact on 
single-use services--such as placing an international call through a 
third-party carrier or receiving a collect call--or other legitimate 
third-party local or long-distance services that haven't been subject 
to the same pattern of abuse that the Commission has seen in recent 
slamming and cramming cases?
    15. The Commission seeks comment on the costs and benefits of an 
opt-in process for third-party local and long-distance charges. The 
Commission believes that blocking such charges would be beneficial to 
consumers and reduce slamming and cramming significantly. Yet the 
Commission recognizes that changes to carrier billing systems can be 
costly. The Commission believes many carriers already have the ability 
to block third-party charges, and seeks comment on whether this is 
correct, and whether there would be any challenges, including billing 
system and notification changes, for carriers arising from adopting an 
opt-in mechanism for third-party charges. What are the costs of 
implementing an opt-in mechanism for third-party charges? For those 
carriers that do not currently offer the option to block third-party 
charges, what costs would be associated with making that protection 
available to consumers and how could the Commission craft rules to 
minimize those costs and burdens? Would the costs to carriers be 
mitigated if the timeframe to implement the opt-in mechanism was 
extended or if the opt-in mechanism was phased in, for example, by 
requiring an opt-in for new customers only? Do small carriers have 
unique implementation costs or other burdens, and if so, how should the 
Commission address those issues?

Double-Checking a Switch With the Consumer

    16. Rather than requiring an opt in before placing third-party 
local or long-distance charges on a bill, should the Commission require 
the executing carrier to confirm or ``double-check'' whether the 
consumer wants to switch providers before making the change? Requiring 
the executing carrier to double-check a change request could be a 
strong anti-slamming safeguard because it gives the consumer a second 
opportunity to confirm a switch. If the Commission were to adopt such a 
requirement, the Commission seeks comment on how the Commission could 
best implement it.
    17. Would requiring that the executing carrier obtain the 
consumer's consent in writing or through the email address of record 
sufficiently protect consumers? Would mandating that the executing 
carrier obtain oral consent via a phone call to the consumer at the 
telephone number of record provide consumers with more protection from 
slamming? If the Commission requires the executing provider to confirm 
a switch request, what should the executing carrier be required to ask 
(e.g., ``the submitting carrier says that you would like to switch to 
them. Is that correct?'')? Are there First Amendment implications 
related to prescribing the language to be used by the executing 
carrier? Should the executing carrier have to follow, for all switch 
requests, the procedures that are presently only in place when a 
consumer has activated a preferred carrier freeze? Should the double-
check by the executing carrier be strictly limited to certain narrow 
questions with no opportunity for retention marketing? Should there be 
a deadline by which the double-check must occur? Should the executing 
carrier be required to notify the new carrier of the timing and outcome 
of the double-check? If so, should there be a timeframe within which 
that notice must occur? Finally, what should the consequences be if an 
executing carrier fails to meet the deadline? The Commission seeks 
comment on the effect the proposal would have on carrier billing 
systems and sales practices. Finally, the Commission seeks comment on 
whether its proposed double-check would have any effect on number 
exhaustion by incenting carriers to issue new numbers to consumers 
while waiting for verification and execution of the carrier change.
    18. Currently, unless a consumer has activated a preferred carrier 
freeze, the slamming rules do not allow the executing carrier to verify 
whether the subscriber wants to change carriers when it receives a 
preferred carrier change request because of previous Commission 
concerns that that approach would be expensive, unnecessary, and 
duplicative of the submitting carrier's verification. At the time those 
rules were adopted, the local and long-distance markets had only been 
recently opened to competition, and there was concern that an executing 
carrier might intentionally delay the carrier change or attempt to 
retain the subscriber. Today, the market for wireline communications 
services is more established and competitive, and consumers have access 
to a wide variety of providers and technologies to obtain long-distance 
services and are more likely to purchase bundles of services from the 
same provider. In addition, slamming has evolved, and the rules the 
Commission adopted almost two decades ago have not proven effective in 
preventing slamming. Do market trends involving stand-alone long-
distance service impact the need for the type of slamming rules the 
Commission proposes? Based on the marketplace today, the Commission 
also seeks comment on the relationship between the ease of switching 
voice providers and broadband adoption. The Commission seeks to avoid 
unintended negative consequences of its proposals. For example, would 
they effectively

[[Page 37834]]

``lock'' consumers into bundles of services that may not meet their 
current broadband needs? Finally, and fundamentally, the Commission 
seeks comment on the prevalence of incidences of slamming as seen in 
its enforcement actions versus the number of legitimate carrier changes 
that occur.
    19. Given these changes in the marketplace and the continued and 
evolving problem of slamming faced by consumers, the Commission seeks 
comment on whether the Commission's previous concerns about delays and 
anti-competitive practices that could arise from a double-check 
requirement are still valid. If the previous concerns are still well-
founded, are those concerns now outweighed by other factors, such as 
ensuring that consumers are not victimized by the new forms of 
slamming? The Commission seeks comment on whether and how the changed 
circumstances since 1998 have reduced the danger of anti-competitive 
behavior, as well as how to structure a double-check mechanism to avoid 
or limit any competitive harms. Similar to its proposals above, the 
Commission seeks comment on whether it should extend its proposal to 
CMRS and interconnected VoIP providers. In the past, the Commission 
expressed concern that requiring verification by the executing carrier 
could be a de facto preferred carrier freeze without the consumer's 
consent that would take control away from consumers. The Commission 
seeks comment on whether the Commission should adopt both a 
verification by the executing carrier and the default carrier freeze 
proposed above. Are these processes duplicative and if so, does it make 
sense to provide consumers with two levels of protection against 
slamming? Does one option benefit consumers in ways that the other does 
not? The Commission seeks comment on the costs to consumers, if any, of 
both options.
    20. The Commission also seeks comment on the costs and benefits of 
requiring some form of secondary verification by the executing carrier 
before switching a consumer's long-distance provider. The Commission 
believes the costs of requiring the executing carrier to perform a 
simple double-check by phone, email or in writing would be fairly 
modest, yet the consumer benefit in stopping slamming would be 
substantial. The Commission seeks comment on these views and ask 
commenters to provide details on costs and benefits. The Commission 
also seeks comment on how it can further mitigate the costs by, for 
example, extending implementation deadlines of any rules adopted and 
considering additional specific relief for smaller carriers.
    21. Section 222(b) of the Act. When it previously determined that 
executing carriers should not verify carrier changes, the Commission 
expressed concern that such verification would violate section 222(b) 
of the Act. Section 222(b) of the Act states that a carrier that 
``receives or obtains proprietary information from another carrier for 
purposes of providing any telecommunications service shall use such 
information only for such purpose, and shall not use such information 
for its own marketing efforts.'' The Commission found that the 
information contained in a submitting carrier's change request is 
proprietary because the submitting carrier must provide information 
regarding the consumer's choice of long-distance providers to the 
executing carrier, to which the executing carrier would otherwise not 
have access, to obtain provisioning of service for the new subscriber. 
Thus, under the Commission's current rules the executing carrier can 
only use the information to provide service to the submitting carrier, 
i.e., changing the subscriber's carrier, and may not attempt to verify 
that subscriber's decision to change carriers.
    22. The Commission notes that section 222(d)(2) of the Act provides 
an exception allowing the carrier to use the customer information ``to 
protect users of those services and other carriers from fraudulent, 
abusive, or unlawful use of, or subscription to such services.'' The 
Commission tentatively concludes that this exception supports its 
proposals to allow the executing carrier to use the customer 
information to re-verify that the consumer wants to change providers. 
The Commission seeks comment on this interpretation. The Commission 
also seeks comment on whether a carrier indeed is using the 
``proprietary information'' received from a submitting carrier only for 
``purposes of providing any telecommunications service'' if it uses 
that information to verify a carrier switch without conducting any 
additional marketing. The Commission seeks comment on whether double-
checking by the executing provider could be permissive, rather than 
required, and whether permissive double-checking would fulfill the 
Commission's policy goals of deterring slamming.
    23. If the Commission determines that section 222 of the Act 
supports requiring executing carriers to confirm a switching request, 
it is important to note that the exceptions in section 222(d) of the 
Act that allow the carrier to use the consumer information for a 
specific purpose would not allow the re-verification process to be used 
for retention marketing, and any rule the Commission adopts would bar 
the executing carrier from using the confirmation process for marketing 
or anticompetitive purposes. The Commission seeks comment on this view, 
and on how its rules could best implement such a bar.

Other Measures

Recording Sales Calls

    24. The Commission's current verification rules provide that 
carriers shall not submit or execute carrier changes without 
authorization from the subscriber and verification of that 
authorization. The Commission seeks comment on whether submitting 
carriers that rely on TPVs should be required to record the entire 
sales call that precedes a switch. The Commission seeks comment on how 
to define a sales call. The Commission believes that a requirement to 
record all sales calls would deter misrepresentation and aid 
enforcement if misrepresentation does occur. The Commission seeks 
comment on this view.
    25. If the Commission requires that sales calls be recorded, should 
the Commission require the same two-year retention of the recordings as 
it currently does for TPV calls? Should the Commission also require 
that sales representatives give the consumer specific information to 
help them understand the call's purpose, for example: (1) The identity 
of the company that is calling or on whose behalf the call is being 
made; (2) that the sales representative is not affiliated with the 
consumer's current long-distance, international, or other toll carrier 
(if true); and (3) the purpose of the call is to inquire whether the 
consumer is authorized to make a change to and wishes to change his or 
her long-distance, international, or other toll service from his or her 
current preferred carrier to the calling carrier. Should the 
Commission's rules also prohibit the sales representative from (1) 
making any false or misleading statements to the consumer regarding the 
third-party verifier or the role of the verifier, and (2) instructing 
the consumer in how he or she should respond to the verifier's 
questions? In the alternative, the Commission seeks comment on whether 
recording the sales call should be voluntary as opposed to being 
required and whether a valid recording should serve as an affirmative 
defense if a slamming complaint was filed against the carrier. Further, 
are there First

[[Page 37835]]

Amendment implications related to prescribing specific notifications?
    26. The Commission does not believe that requiring the disclosures 
discussed above, as well as recording and preserving the sales call, 
would be costly for providers. At the same time, based on evidence from 
recent consumer complaints and enforcement actions indicating that 
sales call misrepresentations are a significant source of slamming, the 
Commission believes the benefits to consumers are material. The 
Commission seeks comment on these views and asks commenters to provide 
details on costs and benefits of its proposals. The Commission also 
seeks comment on how it can further mitigate the costs by, for example, 
extending implementation deadlines and considering additional specific 
relief for smaller carriers.

Third-Party Verifications

    27. The Commission seeks comment on whether TPVs are an effective 
means of providing evidence that a consumer wishes to switch carriers. 
Would eliminating TPVs as a verification mechanism be effective in 
preventing slamming and provide substantial benefits to consumers? How 
would the elimination of TPVs affect legitimate providers' sales 
efforts? If the TPV is eliminated, are there other mechanisms the 
Commission should put in place to verify authorization of a carrier 
change? Should consumers have the option to sign up for service online 
after the sales call has ended, or to call a designated customer 
service number to confirm their desire to switch long distance or other 
toll services? The Commission seeks comment on the impact of these or 
other verification mechanisms on competition. The Commission seeks 
comment on the costs and benefits of elimination of the TPV option. The 
Commission also seeks comment on how it can further mitigate any costs 
to providers by, for example, extending implementation deadlines and 
considering additional specific relief for smaller carriers.
    28. If the Commission decides to retain TPVs as evidence of a 
consumer's wish to switch providers, how might it make them more 
difficult to falsify? The Commission's rules require that TPVs elicit 
certain information, including the subscriber's identity, that the 
person on the call is authorized and wishes to make the switch, and the 
telephone numbers to be switched. Should the Commission update the TPV 
requirements to require that consumers affirmatively state all 
telephone numbers to be switched, rather than, as is currently 
permitted, to allow the third-party verifier to read off the numbers to 
be switched? Because the third-party verifier must already obtain 
specific information during the TPV, the Commission does not believe 
adding this requirement represents a significant additional cost. But 
the Commission believes it would benefit consumers by making it more 
difficult to falsify TPVs.
    29. Are there other ways to ensure the validity of the TPV? For 
example, should the Commission require certification of third-party 
verifiers by either carriers or the Commission? Does the Commission 
have authority to require such certification? The Commission also seeks 
comment on whether there are any current provisions in its verification 
requirements that it could update to make the rules clearer and easier 
to follow. Should the Commission eliminate the requirement that 
verifiers must get confirmation of each individual service sold (e.g., 
intraLATA and interLATA service)? Does this requirement make sense in 
today's bundle-oriented marketplace? The Commission asks commenters to 
provide details on costs and benefits of implementing these potential 
rule changes. The Commission also seeks comment on how it can further 
mitigate the costs by, for example, extending implementation deadlines 
and considering additional specific relief for smaller carriers.

Initial Regulatory Flexibility Act Analysis

    30. As required by the Regulatory Flexibility Act of 1980, as 
amended, (RFA), the Commission has prepared the Initial Regulatory 
Flexibility Analysis (IRFA) of the possible significant economic impact 
on a substantial number of small entities by the policies and rules 
proposed in document FCC 17-91. Written public comments are requested 
on the IRFA. Comments must be identified as responses to the IRFA and 
must be filed by the deadlines for comments on document FCC 17-91 
provided on the first page of document FCC 17-91. The Commission will 
send a copy of document FCC 17-91, including the IRFA, to the Chief 
Counsel for Advocacy of the Small Business Administration (SBA).

Need for, and Objectives of, the Proposed Rules

    30. Document FCC 17-91 contains proposals regarding how to 
strengthen the Commission's rules to prevent slamming and cramming. 
Slamming is the unauthorized change of a consumer's preferred 
interexchange telecommunications service provider and cramming is the 
placement of unauthorized charges on a consumer's telephone bill. 
Despite detailed slamming rules and truth-in-billing rules, thousands 
of consumers are still being slammed and billed for unauthorized 
charges. Since, 2010, the Commission's Enforcement Bureau has brought 
multiple actions against carriers for slamming and cramming violations. 
These actions have resulted in over $80 million dollars in fines and 
proposed forfeitures. The Commission believes that adopting the 
proposals in document FCC 17-91 will provide consumers with the 
additional safeguards they need to protect themselves from this risk.
    31. Specifically, document FCC 17-91 seeks comment on whether and, 
if so, how: (1) The Commission should codify in a rule the prohibition 
against deceptive marketing and misrepresentations on the sales call; 
(2) the Commission should codify in a rule the prohibition against 
placing unauthorized charges on a consumer's telephone bill; (3) the 
Commission should make preferred carrier freezes the default rather 
than something the consumer must initiate; (4) the Commission should 
require consumers to opt in to third-party billing; (5) the Commission 
should require executing carriers to make contact with consumers to 
verify preferred carrier change requests prior to execution; (6) the 
Commission should require recording and retention of the sales call; 
and (7) the Commission should modify the verification rules relating to 
preferred carrier changes to require the consumer to affirmatively list 
the telephone numbers to be switched in a TPV, or update the TPV 
requirements to eliminate the requirement to list all services being 
changed, or eliminate the TPV altogether as an option to verify 
authorization of a carrier switch.

Legal Basis

    32. The legal basis for any action that may be taken pursuant to 
document FCC 17-91 is contained in sections 1-4, 201(b), and 258 of the 
Communications Act of 1934, as amended, 47 U.S.C. 151-154, 201(b), 258.

Description and Estimate of the Number of Small Entities to Which the 
Proposed Rules Will Apply

    33. The RFA directs agencies to provide a description of, and where 
feasible, an estimate of the number of small entities that will be 
affected by the proposed rules, if adopted. The RFA generally defines 
the term ``small entity'' as having the same meaning as the terms 
``small business,'' ``small

[[Page 37836]]

organization,'' and ``small governmental jurisdiction.'' In addition, 
the term ``small business'' has the same meaning as the term ``small 
business concern'' under the Small Business Act. Under the Small 
Business Act, a ``small business concern'' is one that: (1) Is 
independently owned and operated; (2) is not dominant in its field of 
operation; and (3) meets any additional criteria established by the 
Small Business Administration.

Wireline Carriers

    34. Incumbent Local Exchange Carriers (Incumbent LECs). Neither the 
Commission nor the SBA has developed a small business size standard 
specifically for incumbent local exchange services. The closest 
applicable size standard under SBA rules is for the category Wired 
Telecommunications Carriers. The U.S. Census Bureau defines this 
industry as ``establishments primarily engaged in operating and/or 
providing access to transmission facilities and infrastructure that 
they own and/or lease for the transmission of voice, data, text, sound, 
and video using wired communications networks. Transmission facilities 
may be based on a single technology or a combination of technologies. 
Establishments in this industry use the wired telecommunications 
network facilities that they operate to provide a variety of services, 
such as wired telephony services, including VoIP services, wired 
(cable) audio and video programming distribution, and wired broadband 
internet services. By exception, establishments providing satellite 
television distribution services using facilities and infrastructure 
that they operate are included in this industry.'' Under that size 
standard, such a business is small if it has 1,500 or fewer employees. 
Census data for 2012 show that there were 3,117 firms that operated 
that year. Of this total, 3,083 operated with fewer than 1,000 
employees. Consequently, the Commission estimates that most providers 
of incumbent local exchange service are small businesses.
    35. Competitive Local Exchange Carriers (Competitive LECs), 
Competitive Access Providers (CAPs), Shared-Tenant Service Providers, 
and Other Local Service Providers. Neither the Commission nor the SBA 
has developed a small business size standard specifically for these 
service providers. The appropriate size standard under SBA rules is for 
the category Wired Telecommunications Carriers. The U.S. Census Bureau 
defines this industry as ``establishments primarily engaged in 
operating and/or providing access to transmission facilities and 
infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired communications 
networks. Transmission facilities may be based on a single technology 
or a combination of technologies. Establishments in this industry use 
the wired telecommunications network facilities that they operate to 
provide a variety of services, such as wired telephony services, 
including VoIP services, wired (cable) audio and video programming 
distribution, and wired broadband internet services. By exception, 
establishments providing satellite television distribution services 
using facilities and infrastructure that they operate are included in 
this industry.'' Under that size standard, such a business is small if 
it has 1,500 or fewer employees. Census data for 2012 show that there 
were 3,117 firms that operated that year. Of this total, 3,083 operated 
with fewer than 1,000 employees. Consequently, the Commission estimates 
that most providers of competitive local exchange service, competitive 
access providers, Shared-Tenant Service Providers, and other local 
service providers are small entities.
    36. The Commission has included small incumbent LECs in this 
present RFA analysis. As noted above, a ``small business'' under the 
RFA is one that, inter alia, meets the pertinent small business size 
standard (e.g., a telephone communications business having 1,500 or 
fewer employees), and ``is not dominant in its field of operation.'' 
The SBA's Office of Advocacy contends that, for RFA purposes, small 
incumbent LECs are not dominant in their field of operation because any 
such dominance is not ``national'' in scope. The Commission has 
therefore included small incumbent LECs in this RFA analysis, although 
it emphasizes that the RFA action has no effect on Commission analyses 
and determinations in other, non-RFA contexts.
    37. Interexchange Carriers (IXCs). Neither the Commission nor the 
SBA has developed a small business size standard specifically for 
providers of interexchange services. The appropriate size standard 
under SBA rules is for the category Wired Telecommunications Carriers. 
The U.S. Census Bureau defines this industry as ``establishments 
primarily engaged in operating and/or providing access to transmission 
facilities and infrastructure that they own and/or lease for the 
transmission of voice, data, text, sound, and video using wired 
communications networks. Transmission facilities may be based on a 
single technology or a combination of technologies. Establishments in 
this industry use the wired telecommunications network facilities that 
they operate to provide a variety of services, such as wired telephony 
services, including VoIP services, wired (cable) audio and video 
programming distribution, and wired broadband internet services. By 
exception, establishments providing satellite television distribution 
services using facilities and infrastructure that they operate are 
included in this industry.'' Under that size standard, such a business 
is small if it has 1,500 or fewer employees. Census data for 2012 show 
that there were 3,117 firms that operated that year. Of this total, 
3,083 operated with fewer than 1,000 employees. Consequently, the 
Commission estimates that the majority of IXCs are small entities.
    38. Other Toll Carriers. Neither the Commission nor the SBA has 
developed a size standard for small businesses specifically applicable 
to Other Toll Carriers. This category includes toll carriers that do 
not fall within the categories of interexchange carriers, operator 
service providers, pre-paid calling card providers, satellite service 
carriers, or toll resellers. The closest applicable size standard under 
SBA rules is for Wired Telecommunications Carriers. The U.S. Census 
Bureau defines this industry as ``establishments primarily engaged in 
operating and/or providing access to transmission facilities and 
infrastructure that they own and/or lease for the transmission of 
voice, data, text, sound, and video using wired communications 
networks. Transmission facilities may be based on a single technology 
or a combination of technologies. Establishments in this industry use 
the wired telecommunications network facilities that they operate to 
provide a variety of services, such as wired telephony services, 
including VoIP services, wired (cable) audio and video programming 
distribution, and wired broadband internet services. By exception, 
establishments providing satellite television distribution services 
using facilities and infrastructure that they operate are included in 
this industry.'' Under that size standard, such a business is small if 
it has 1,500 or fewer employees. Census data for 2012 show that there 
were 3,117 firms that operated that year. Of this total, 3,083 operated 
with fewer than 1,000 employees. Thus, under this category and the 
associated small business size standard, the majority of Other Toll 
Carriers can be considered small.

[[Page 37837]]

Wireless Carriers

    39. Wireless Telecommunications Carriers (except Satellite). Since 
2007, the Census Bureau has placed wireless firms within this new, 
broad, economic census category. Under the present and prior 
categories, the SBA has deemed a wireless business to be small if it 
has 1,500 or fewer employees. For the category of Wireless 
Telecommunications Carriers (except Satellite), Census data for 2012 
show that there were 967 firms that operated for the entire year. Of 
this total, 955 firms had fewer than 1,000 employees. Thus under this 
category and the associated size standard, the Commission estimates 
that the majority of wireless telecommunications carriers (except 
satellite) are small entities. Similarly, according to internally 
developed Commission data, 413 carriers reported that they were engaged 
in the provision of wireless telephony, including cellular service, 
Personal Communications Service PCS, and Specialized Mobile Radio SMR 
services. Of this total, an estimated 261 have 1,500 or fewer 
employees. Thus, using available data, the Commission estimates that 
the majority of wireless firms can be considered small.

Resellers

    40. Local Resellers. The SBA has developed a small business size 
standard for the category of Telecommunications Resellers. Under that 
size standard, such a business is small if it has 1,500 or fewer 
employees. Census data for 2012 show that 1,341 firms provided resale 
services during that year. Of that number, all operated with fewer than 
1,000 employees. Thus, under this category and the associated small 
business size standard, the majority of these pre-paid calling card 
providers can be considered small entities.
    41. Toll Resellers. The SBA has developed a small business size 
standard for the category of Telecommunications Resellers. Under that 
size standard, such a business is small if it has 1,500 or fewer 
employees. Census data for 2012 show that 1,341 firms provided resale 
services during that year. Of that number, all operated with fewer than 
1,000 employees. Thus, under this category and the associated small 
business size standard, the majority of these pre-paid calling card 
providers can be considered small entities.

Description of Projected Reporting, Recordkeeping, and Other Compliance 
Requirements for Small Entities

    42. Document FCC 17-91 contains proposals regarding how to 
strengthen the Commission's rules to prevent slamming and cramming. 
Until the proposed rules are defined in full, it is not possible to 
predict with certainty whether the costs of compliance will be 
proportionate between small and large providers. The Commission seeks 
to minimize the burden associated with reporting, recordkeeping, and 
other compliance requirements for the proposed rules.
    43. The proposals under consideration could result in additional 
costs to regulated entities. These proposals may necessitate that some 
carriers create new processes or make changes to their existing 
processes which would impose some additional costs to carriers. 
Document FCC 17-91 proposes to require: Reverification by the executing 
carrier; a default carrier freeze and procedures to lift the freeze; 
recording of sales calls and retention of such recordings for two 
years; certain information be conveyed during the sales call; 
implementation of new marketing methods; and an explicit opt-in 
decision for third-party billing. These proposals may require changes 
to certain carrier processes. However, some carriers may already be in 
compliance with some of these requirements and therefore, no additional 
compliance efforts will be required.

Steps Taken To Minimize Significant Economic Impact on Small Entities, 
and Significant Alternatives Considered

    44. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its proposed approach, 
which may include the following four alternatives (among others): (1) 
The establishment of differing compliance or reporting requirements or 
timetables that take into account the resources available to small 
entities; (2) the clarification, consolidation, or simplification of 
compliance or reporting requirements under the rule for small entities; 
(3) the use of performance, rather than design, standards; and (4) an 
exemption from coverage of the rule, or any part thereof, for small 
entities.
    45. The Commission proposes rules to eliminate slamming and 
cramming on consumers' bills. The Commission believes that any economic 
burden these proposed rules may have on carriers is outweighed by the 
considerable benefits to consumers. Consumers are currently being 
charged for services they never authorized and in some instances never 
received. In addition, consumers must expend significant time and 
energy trying to recoup these costs and get back to the provider of 
their choice. In document FCC 17-91 the Commission specifically asks 
how to minimize the economic impact of its proposals on small entities. 
For instance, the Commission seeks comment on the specific costs of the 
measures it discusses in document FCC 17-91, and ways it might mitigate 
any implementation costs, including by extending implementation 
deadlines for small carriers. It also particularly asks whether smaller 
carriers face unique implementation costs and, if so, how the 
Commission might address those concerns. In addition, for example, it 
seeks comment on alternatives for how a carrier should obtain a 
consumer's decision to opt in to third-party charges, if the Commission 
decides to adopt an ``opt-in'' approach. Finally, the Commission seeks 
comment on the overall economic impact these proposed rules may have on 
carriers because the Commission seeks to minimize all costs associated 
with these proposed rules.
    46. The Commission expects to consider the economic impact on small 
entities, as identified in comments filed in response to document FCC 
17-91 and the IRFA, in reaching its final conclusions and taking action 
in this proceeding.

Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rules

    47. None.

List of Subjects in 47 CFR Part 64

    Claims, Communications common carriers, Computer technology, 
Credit, Foreign relations, Individuals with disabilities, Political 
candidates, Radio, Reporting and recordkeeping requirements, 
Telecommunications, Telegraph, Telephone.


Federal Communications Commission.
Katura Jackson,
Federal Register Liaison Officer, Office of the Secretary.

    For the reasons discussed in the preamble, the Federal 
Communications Commission proposes to amend 47 CFR part 64 as follows:

PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS

0
1. The authority citation for part 64 continues to read as follows:

    Authority:  47 U.S.C. 154, 225, 254(k), 403(b)(2)(B), (c), 715, 
Pub. L. 104-104, 110

[[Page 37838]]

Stat. 56. Interpret or apply 47 U.S.C. 201, 218, 222, 225, 226, 227, 
228, 254(k), 616, 620, and the Middle Class Tax Relief and Job 
Creation Act of 2012, Pub. L. 112-96, unless otherwise noted.

0
2. Amend Sec.  64.1120 by revising paragraph (a)(1)(i) to read as 
follows:


Sec.  64.1120  Verification of orders for telecommunications services.

    (a) * * *
    (1) * * *
    (i) Authorization from the subscriber, subject to the following:
    (A) Misrepresentation and/or deception on the sales call is 
prohibited. Authorization is not valid if there is any 
misrepresentation and/or deception when making the sales call.
    (B) [Reserved]
* * * * *
0
3. Amend Sec.  64.2401 by adding paragraph (g) to read as follows:


Sec.  64.2401  Truth-in Billing Requirements.

* * * * *
    (g) Prohibition against unauthorized charges. Carriers shall not 
place or cause to be placed on any telephone bill charges that have not 
been authorized by the subscriber. For purposes of this subsection, 
telephone bill means any bill that contains charges for an interstate 
telecommunications service.

[FR Doc. 2017-16961 Filed 8-11-17; 8:45 am]
 BILLING CODE 6712-01-P



                                                  37830                  Federal Register / Vol. 82, No. 155 / Monday, August 14, 2017 / Proposed Rules

                                                  make. The EPA will generally not                        FEDERAL COMMUNICATIONS                                  For detailed instructions for
                                                  consider comments or comment                            COMMISSION                                            submitting comments and additional
                                                  contents located outside of the primary                                                                       information on the rulemaking process,
                                                  submission (i.e. on the web, cloud, or                  47 CFR Part 64                                        see the SUPPLEMENTARY INFORMATION
                                                  other file sharing system). For                                                                               section of this document.
                                                                                                          [CG Docket No. 17–169; FCC 17–91]
                                                  additional submission methods, please                                                                         FOR FURTHER INFORMATION CONTACT:
                                                  contact the person identified in the FOR                Protecting Consumers From                             Kimberly A. Wild, Consumer Policy
                                                  FURTHER INFORMATION CONTACT section.                    Unauthorized Carrier Changes and                      Division, Consumer and Governmental
                                                  For the full EPA public comment policy,                 Related Unauthorized Charges                          Affairs Bureau (CGB), at (202) 418–1324,
                                                  information about CBI or multimedia                                                                           email: Kimberly.Wild@fcc.gov.
                                                                                                          AGENCY:  Federal Communications
                                                  submissions, and general guidance on                                                                          SUPPLEMENTARY INFORMATION: This is a
                                                                                                          Commission.
                                                  making effective comments, please visit                                                                       summary of the Commission’s Rules
                                                                                                          ACTION: Proposed rule.                                and Policies Protecting Consumers from
                                                  https://www.epa.gov/dockets/
                                                  commenting-epa-dockets.                                                                                       Unauthorized Carrier Changes and
                                                                                                          SUMMARY:    In this document, the
                                                                                                                                                                Related Unauthorized Charges, Notice
                                                  FOR FURTHER INFORMATION CONTACT:                        Commission proposes to amend its rules
                                                                                                                                                                of Proposed Rulemaking, document FCC
                                                  Donald Dahl, U.S. Environmental                         to prohibit carriers from
                                                                                                                                                                17–91, adopted on July 13, 2017,
                                                  Protection Agency, EPA New England                      misrepresenting themselves when
                                                                                                                                                                released on July 14, 2017. The full text
                                                  Regional Office, Office of Ecosystem                    placing telemarketing sales calls to
                                                                                                                                                                of document FCC 17–91 will be
                                                  Protection, Air Permits, Toxics, and                    consumers and placing unauthorized
                                                                                                                                                                available for public inspection and
                                                  Indoor Programs Unit, 5 Post Office                     charges on their phone bills. The
                                                                                                                                                                copying via ECFS, and during regular
                                                                                                          Commission seeks comment on ways to
                                                  Square—Suite 100, (Mail code OEP05–                                                                           business hours at the FCC Reference
                                                                                                          strengthen its rules to protect consumers
                                                  2), Boston, MA 02109–3912. Mr. Dahl’s                                                                         Information Center, Portals II, 445 12th
                                                                                                          from slamming and cramming and
                                                  telephone number is (617) 918–1657;                                                                           Street SW., Room CY–A257,
                                                                                                          proposes to codify a rule prohibiting
                                                  email address: dahl.donald@epa.gov.                                                                           Washington, DC 20554. A copy of
                                                                                                          misrepresentations on carrier
                                                                                                                                                                document FCC 17–91 and any
                                                  SUPPLEMENTARY INFORMATION:       In the                 telemarketing calls to consumers that
                                                                                                                                                                subsequently filed documents in this
                                                  Final Rules Section of this issue of the                often precede a carrier switch, and
                                                                                                                                                                matter may also be found by searching
                                                  Federal Register, EPA is approving the                  proposes to codify a rule against
                                                                                                                                                                ECFS at: http://apps.fcc.gov/ecfs/ (insert
                                                  State’s SIP submittal as a direct final                 cramming. The intended effect of this
                                                                                                                                                                CG Docket No. 17–169 into the
                                                  rule without prior proposal because the                 action is to prevent unscrupulous
                                                                                                                                                                Proceeding block).
                                                  Agency views this as a noncontroversial                 carriers from targeting vulnerable
                                                                                                                                                                  Pursuant to 47 CFR 1.415, 1.419,
                                                  submittal and anticipates no adverse                    populations from committing fraud
                                                                                                                                                                interested parties may file comments
                                                  comments. A detailed rationale for the                  either on sales calls or when ‘‘verifying’’
                                                                                                                                                                and reply comments on or before the
                                                  approval is set forth in the direct final               a consumer switch.
                                                                                                                                                                dates indicated on the first page of this
                                                  rule. If no adverse comments are                        DATES: Comments are due on or before                  document. Comments may be filed
                                                  received in response to this action rule,               September 13, 2017, and reply                         using ECFS. See Electronic Filing of
                                                  no further activity is contemplated. If                 comments are due on or before October                 Documents in Rulemaking Proceedings,
                                                  EPA receives adverse comments, the                      13, 2017.                                             63 FR 24121 (1998).
                                                  direct final rule will be withdrawn and                 ADDRESSES: You may submit comments                      • All hand-delivered or messenger-
                                                  all public comments received will be                    identified by CG Docket No. 17–169                    delivered paper filings for the
                                                  addressed in a subsequent final rule                    and/or FCC Number 17–91, by any of                    Commission’s Secretary must be
                                                  based on this proposed rule. EPA will                   the following methods:                                delivered to FCC Headquarters at 445
                                                  not institute a second comment period.                     • Electronic Filers: Comments may be               12th Street SW., Room TW–A325,
                                                  Any parties interested in commenting                    filed electronically using the Internet by            Washington, DC 20554. All hand
                                                                                                          accessing the Commission’s Electronic                 deliveries must be held together with
                                                  on this action should do so at this time.
                                                                                                          Comment Filing System (ECFS), through                 rubber bands or fasteners. Any
                                                  Please note that if EPA receives adverse
                                                                                                          the Commission’s Web site: http://                    envelopes must be disposed of before
                                                  comment on an amendment, paragraph,                     apps.fcc.gov/ecfs/. Filers should follow              entering the building.
                                                  or section of this rule and if that                     the instructions provided on the Web                    • Commercial Mail sent by overnight
                                                  provision may be severed from the                       site for submitting comments. For ECFS                mail (other than U.S. Postal Service
                                                  remainder of the rule, EPA may adopt                    filers, in completing the transmittal                 Express Mail and Priority Mail) must be
                                                  as final those provisions of the rule that              screen, filers should include their full              sent to 9300 East Hampton Drive,
                                                  are not the subject of an adverse                       name, U.S. Postal service mailing                     Capitol Heights, MD 20743.
                                                  comment.                                                address, and CG Docket No. 17–169.                      • U.S. Postal Service first-class,
                                                     For additional information, see the                     • Mail: Parties who choose to file by              Express, and Priority mail should be
                                                  direct final rule which is located in the               paper must file an original and one copy              addressed to 445 12th Street SW.,
                                                  Rules Section of this issue of the                      of each filing. Filings can be sent by                Washington, DC 20554.
                                                  Federal Register.                                       hand or messenger delivery, by                          Pursuant to § 1.1200 of the
                                                                                                          commercial overnight courier, or by                   Commission’s rules, 47 CFR 1.1200, this
sradovich on DSK3GMQ082PROD with PROPOSALS




                                                    Dated: July 24, 2017.                                 first-class or overnight U.S. Postal                  matter shall be treated as a ‘‘permit-but-
                                                  Deborah A. Szaro,                                       Service mail (although the Commission                 disclose’’ proceeding in accordance
                                                  Acting Regional Administrator, EPA New                  continues to experience delays in                     with the Commission’s ex parte rules.
                                                  England.                                                receiving U.S. Postal Service mail). All              Persons making oral ex parte
                                                  [FR Doc. 2017–17022 Filed 8–11–17; 8:45 am]             filings must be addressed to the                      presentations are reminded that
                                                  BILLING CODE 6560–50–P                                  Commission’s Secretary, Office of the                 memoranda summarizing the
                                                                                                          Secretary, Federal Communications                     presentations must contain summaries
                                                                                                          Commission.                                           of the substances of the presentations


                                             VerDate Sep<11>2014   15:54 Aug 11, 2017   Jkt 241001   PO 00000   Frm 00004   Fmt 4702   Sfmt 4702   E:\FR\FM\14AUP1.SGM   14AUP1


                                                                         Federal Register / Vol. 82, No. 155 / Monday, August 14, 2017 / Proposed Rules                                           37831

                                                  and not merely a listing of the subjects                from slamming and cramming. The                       accordance with such verification
                                                  discussed. More than a one or two                       Commission seeks to strengthen its                    procedures as the Commission shall
                                                  sentence description of the views and                   ability to take action against slammers               prescribe.’’ The Commission believes
                                                  arguments presented is generally                        and crammers, and deter carriers from                 the anti-slamming steps it proposes here
                                                  required. See 47 CFR 1.1206(b). Other                   slamming and cramming in the first                    are ‘‘verification procedures’’ consistent
                                                  rules pertaining to oral and written ex                 place, without impeding competition or                with the authority specified in section
                                                  parte presentations in permit-but-                      impairing the ability of consumers to                 258 of the Act. Similarly, the
                                                  disclose proceedings are set forth in                   switch providers.                                     Commission has found that both
                                                  § 1.1206(b) of the Commission’s rules,                                                                        sections 201(b) and 258 of the Act
                                                                                                          Background
                                                  47 CFR 1.1206(b).                                                                                             support its truth-in-billing rules,
                                                    To request materials in accessible                    Slamming Rules                                        including those to prevent cramming on
                                                  formats for people with disabilities                       3. Section 258 of the Communications               consumers’ bills. The Commission seeks
                                                  (Braille, large print, electronic files,                Act of 1934, as amended                               comment on the nature and scope of its
                                                  audio format), send an email to: fcc504@                (Communications Act or Act), makes it                 authority to adopt the rules it proposes
                                                  fcc.gov or call CGB at: (202) 418–0530                  unlawful for any telecommunications                   in document FCC 17–91.
                                                  (voice), or (202) 418–0432 (TTY).                       carrier to ‘‘submit or execute a change
                                                  Document FCC 17–91 can also be                                                                                Banning Misrepresentation and
                                                                                                          in a subscriber’s selection of a provider             Unauthorized Charges
                                                  downloaded in Word or Portable                          of telephone exchange service or
                                                  Document Format (PDF) at: https://                      telephone toll service except in                         6. The Commission’s recent
                                                  www.fcc.gov/document/fcc-proposes-                      accordance with such verification                     enforcement actions reveal that a major
                                                  rules-aid-investigation-threatening-calls.              procedures as the Commission shall                    source of slamming is deception in the
                                                                                                          prescribe.’’ To further protect                       sales calls. The Commission seeks
                                                  Initial Paperwork Reduction Act of                                                                            comment on proposed new rules to
                                                  1995 Analysis                                           consumers from slamming and provide
                                                                                                          them with control over their service                  address sales call abuses and further
                                                    Document FCC 17–91 seeks comment                                                                            reduce slamming. The Commission’s
                                                                                                          providers, the Commission’s rules allow
                                                  on proposed rule amendments that may                                                                          current rules contain detailed
                                                                                                          consumers to opt in to freeze their
                                                  result in modified information                                                                                verification procedures, adopted under
                                                                                                          choice of carriers. At the same time, the
                                                  collection requirements. If the                                                                               section 258 of the Act, that specify that
                                                                                                          rules do not allow for the executing
                                                  Commission adopts any modified                                                                                carriers shall not submit or execute
                                                                                                          carrier to verify that the subscriber
                                                  information collection requirements, the                wants to change carriers, so as to avoid              carrier changes without authorization
                                                  Commission will publish another notice                  undue delay in authorized switches.                   from the subscriber and verification of
                                                  in the Federal Register inviting the                    Finally, the Commission adopted rules                 that authorization. The Commission has
                                                  public to comment on the requirements,                  for calculating slamming carrier                      previously held that misrepresentations
                                                  as required by the Paperwork Reduction                  liability.                                            on sales calls are an unjust and
                                                  Act (PRA). Public Law 104–13; 44                                                                              unreasonable practice and unlawful
                                                  U.S.C. 3501–3520. In addition, pursuant                 Continuing Problem                                    under section 201(b) of the Act.
                                                  to the Small Business Paperwork Relief                     4. Notwithstanding the Commission’s                Although the Commission has in place
                                                  Act of 2002, the Commission seeks                       rulemaking and enforcement actions to                 verification rules to prevent slamming,
                                                  comment on how it might further                         date, slamming and cramming continue                  its rules do not expressly ban carrier- or
                                                  reduce the information collection                       to be a problem. Slammers, or would-be                carrier-agent-misrepresentations on the
                                                  burden for small business concerns with                 slammers, have also crammed                           sales calls that typically precede a slam.
                                                  fewer than 25 employees. Public Law                     consumers as part of their fraud                      The Commission thus proposes to
                                                  107–198, 116 Stat. 729; 44 U.S.C.                       schemes. The Commission is cognizant                  codify, pursuant to sections 258 and
                                                  3506(c)(4).                                             that it must balance the benefits of the              201(b) of the Act, a new
                                                                                                          proposals in document FCC 17–91                       § 64.1120(a)(1)(i)(A) of its rules banning
                                                  Synopsis                                                                                                      misrepresentations on the sales calls
                                                                                                          against the burden they may place on
                                                     1. All too often, unscrupulous carriers              legitimate carrier changes and third-                 and stating that any misrepresentation
                                                  target Americans, including those                       party charges. The steps the                          or deception would invalidate any
                                                  within vulnerable populations like the                  Commission seeks comment on today to                  subsequent verification of a carrier
                                                  elderly, recent immigrants, small                       strengthen its rules seek to address the              change, even where the submitting
                                                  businesses, and non-English speakers, to                evolving practices of bad actors with                 carrier purports to have evidence of
                                                  carry out unauthorized carrier changes,                 respect to slamming and cramming,                     consumer authorization (e.g., a TPV
                                                  or ‘‘slams.’’ These carriers misrepresent               while not impeding competition or                     recording). The Commission believes
                                                  who they are and why they are calling,                  impairing the ability of consumers to                 codifying such a ban would provide
                                                  fraudulently verify carrier changes, and                switch providers.                                     even greater clarity to carriers and will
                                                  add unauthorized charges, or ‘‘crams,’’                                                                       aid its enforcement efforts. The
                                                  onto consumers’ bills. Some sales agents                Notice of Proposed Rulemaking                         Commission seeks comment on this
                                                  pretend they are calling from a                            5. In document FCC 17–91, the                      proposal. Are there any potential
                                                  consumer’s existing carrier, others                     Commission seeks comment on ways to                   downsides to a codified rule against
                                                  pretend to call about a package delivery                strengthen its rules to protect consumers             sales call misrepresentation? The
                                                  to record a consumer saying certain key                 from slamming and cramming. The                       Commission notes that its slamming
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                                                  phrases like their name and ‘‘yes.’’ Still              Commission believes its legal authority               rules currently do not apply to CMRS,
                                                  others bill for services never rendered or              stems directly from sections 201(b) and               pre-paid wireless, or interconnected
                                                  refuse to stop billing for new services                 258 of the Act. The Commission has                    Voice over Internet Protocol (VoIP). Are
                                                  even after a consumer terminates                        based slamming and cramming rules on                  such misrepresentations enough of a
                                                  service.                                                these provisions of the Act in the past.              problem for CMRS, pre-paid wireless
                                                     2. With document FCC 17–91, the                      The Commission notes that section 258                 and interconnected VoIP and sufficient
                                                  Commission seeks comment on                             of the Act is clear that carriers cannot              to justify extending its proposed rule to
                                                  additional steps to protect consumers                   execute switches unless they do so ‘‘in               cover those services? Would such a rule


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                                                  37832                  Federal Register / Vol. 82, No. 155 / Monday, August 14, 2017 / Proposed Rules

                                                  impose any burden on legitimate                         consumers are automatically afforded                  costs would presumably be greater. The
                                                  marketing? How should the proposed                      additional protection against slamming,               benefits of a default freeze may be
                                                  rule interact with existing State                       rather than requiring them to take extra              substantial, because would-be slammers
                                                  slamming rules?                                         steps to do so. The Commission believes               would face significant obstacles to
                                                     7. The Commission also proposes to                   this would give consumers more control                carrying out their intended slams. The
                                                  codify a rule against cramming. While                   to prevent slamming. Today, carriers                  Commission seeks comment on these
                                                  cramming has been a long-standing                       must offer freezes for local, intraLATA               views and ask commenters to provide
                                                  problem and the Commission has                          and interLATA services and get separate               details on costs and benefits of both
                                                  adopted truth-in-billing rules to help                  authorization from consumers for each                 implementing a default freeze and
                                                  detect it, the Commission has never                     of the services the consumer chooses to               procedures to lift a default freeze. Can
                                                  codified a rule against cramming. The                   freeze. A majority of consumers today                 the Commission mitigate the costs by,
                                                  Commission thus proposes to codify in                   purchase bundles of services rather than              for example, extending implementation
                                                  a new § 64.2401(g) of its rules the                     selecting individual services, and the                deadlines and considering additional
                                                  existing prohibition against cramming                   Commission believes most consumers                    specific relief for smaller carriers? Could
                                                  that the Commission has enforced under                  have no reason to distinguish                         costs be further mitigated by applying a
                                                  section 201(b) of the Act. The                          interLATA and intraLATA services. The                 default freeze only to new customers
                                                  Commission believes codifying the                       Commission seeks comment on                           and not existing ones? Should the
                                                  cramming prohibition for wireline and                   eliminating the service distinctions for              Commission distinguish between
                                                  wireless carriers would act as a                        these purposes and having carrier                     smaller local exchange carriers and
                                                  deterrent. The Commission believes                      freezes apply to all telephone services a             larger local exchange carriers in what
                                                  codifying a ban against cramming would                  consumer has with no need to seek                     rules should apply? What would be the
                                                  provide even greater clarity to carriers                separate authorization. The Commission                cost savings for consumers and carriers
                                                  and will aid its enforcement. The                       believes consumers purchase CMRS and                  in avoiding the expense and
                                                  Commission seeks comment on this                        interconnected VoIP as all distance                   inconvenience of restoring service with
                                                  proposal. Are there any potential                       services and thus a default freeze does               their original carrier after a slam and
                                                  downsides to such a rule? The                           not make sense for these services. The                seeking a refund for the unauthorized
                                                  Commission’s cramming rules currently                   Commission seeks comment on that                      charges?
                                                  do not apply to interconnected VoIP,                    view and whether it should consider
                                                                                                                                                                Blocking Certain Third-Party Billing by
                                                  and only some of the cramming rules                     extending default freezes to those
                                                                                                                                                                Default
                                                  apply to CMRS. Should the Commission                    services.
                                                  extend this proposed rule to CMRS, pre-                    9. If the Commission were to adopt a                  11. Today, the Commission’s rules do
                                                  paid wireless and interconnected VoIP?                  default freeze rule, should it apply to all           not prohibit carriers from placing third-
                                                  Are there limitations on the                            local exchange carriers, or only those                party charges on consumers’ bills
                                                                                                          that currently offer freezes? What effect             without verification by the consumer, a
                                                  Commission’s ability to adopt the
                                                                                                          would the Commission’s proposal have                  practice that has led to cramming.
                                                  proposed cramming rule? Should this
                                                                                                          on carrier billing systems and sales                  Consumers who do not have a preferred
                                                  proposed rule be codified under the
                                                                                                          practices? How should consumers be                    long-distance provider have been
                                                  slamming rules as opposed to the
                                                                                                          notified about this change to ensure                  crammed when a third-party carrier
                                                  cramming rules? The truth-in-billing
                                                                                                          they are fully aware of the default                   adds its long-distance service to the
                                                  rules do not define ‘‘cramming’’ or
                                                                                                          freeze? Should the Commission change                  consumer’s bill without authorization.
                                                  ‘‘telephone bill.’’ The Commission seeks
                                                                                                          its current requirements for notifying                Some consumers discover a slam and
                                                  comment on whether it should adopt
                                                                                                          consumers about freezes, or relax those               have their preferred carrier’s service
                                                  such definitions for clarity of its rules.
                                                                                                          requirements? What procedures should                  reinstated but are still billed by the
                                                  Many consumers today receive                                                                                  slamming carrier for local or long-
                                                                                                          be put in place to lift a default freeze?
                                                  electronic bills and have constant online                                                                     distance service.
                                                                                                          The Commission seeks comment on
                                                  access to their telephone account                                                                                12. The Commission seeks comment
                                                                                                          whether its freeze proposal would affect
                                                  showing in near real-time all fees,                                                                           on requiring wireline carriers to block
                                                                                                          number exhaustion by incenting carriers
                                                  charges and assessments. If the                                                                               third-party charges for local and long-
                                                                                                          to issue new numbers to consumers
                                                  Commission defines ‘‘telephone bill’’ in                                                                      distance service—a frequent source of
                                                                                                          while waiting for the freeze to be lifted.
                                                  its rules, should it include the various                                                                      slamming-related cramming—by
                                                                                                          The Commission’s goals are to ensure
                                                  ways that consumers can keep track of                                                                         default, and only bill such charges if a
                                                                                                          that the default freeze is a strong
                                                  their telephone account activity?                                                                             consumer opts in. Do consumers
                                                                                                          safeguard against slamming while not
                                                  PIC Freezes and Third-Party Billing                     unduly burdening consumers who may                    generally expect to be charged for local
                                                                                                          want to opt out of a freeze or giving                 or long-distance service by third parties?
                                                  Preferred Carrier Freezes by Default                                                                          What trends, if any, could inform the
                                                                                                          executing carriers who may be losing
                                                     8. The Commission’s current rules                    the customer an opportunity to behave                 Commission’s understanding of how
                                                  allow consumers to protect themselves                   anti-competitively. The Commission                    consumers make choices in the market
                                                  from slamming by ‘‘freezing’’ their                     seeks comment on how to achieve these                 for telephone service? How prevalent
                                                  choice of wireline providers if their                   goals along with whether carriers                     are such third-party charges? Do the
                                                  local exchange carrier offers that ability.             should be able to charge for freezes.                 natural reductions in third-party billing
                                                  But to do so, a consumer must                              10. What are the costs and benefits of             as a result of market changes reduce the
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                                                  affirmatively opt in. Given the trend of                a default freeze? For carriers that                   need for the type of rule the
                                                  consumers preferring to buy local and                   already offer consumers a freeze option,              Commission proposes? The Commission
                                                  long-distance services together rather                  the cost to implement a default freeze                notes that the vast majority of
                                                  than separately, as well as emerging                    should be relatively low, essentially                 complaints and enforcement actions
                                                  abusive practices in the market for                     changing a field in a preexisting                     appear to target the billing practices of
                                                  resold local and long-distance services,                database. For carriers that do not                    traditional local exchange carriers, not
                                                  the Commission seeks comment on                         currently offer a preferred carrier freeze            wireless carriers or interconnected VoIP
                                                  making freezes the default so that                      to their consumers, the implementation                providers. Is that because wireless


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                                                                         Federal Register / Vol. 82, No. 155 / Monday, August 14, 2017 / Proposed Rules                                          37833

                                                  carriers and interconnected VoIP                        believes that blocking such charges                   carrier? Should the executing carrier
                                                  providers generally offer local and long-               would be beneficial to consumers and                  have to follow, for all switch requests,
                                                  distance services as a bundle or for                    reduce slamming and cramming                          the procedures that are presently only in
                                                  some other reason? Notwithstanding the                  significantly. Yet the Commission                     place when a consumer has activated a
                                                  lack of complaints and enforcement                      recognizes that changes to carrier billing            preferred carrier freeze? Should the
                                                  actions about CMRS and interconnected                   systems can be costly. The Commission                 double-check by the executing carrier be
                                                  VoIP, the Commission seeks comment                      believes many carriers already have the               strictly limited to certain narrow
                                                  on whether it should extend its proposal                ability to block third-party charges, and             questions with no opportunity for
                                                  to those services.                                      seeks comment on whether this is                      retention marketing? Should there be a
                                                     13. How exactly should an opt-in                     correct, and whether there would be any               deadline by which the double-check
                                                  process for third-party local and long-                 challenges, including billing system and              must occur? Should the executing
                                                  distance service work? For example, if                  notification changes, for carriers arising            carrier be required to notify the new
                                                  a carrier offered its subscribers access to             from adopting an opt-in mechanism for                 carrier of the timing and outcome of the
                                                  information about their account online,                 third-party charges. What are the costs               double-check? If so, should there be a
                                                  could a simple control be added so that                 of implementing an opt-in mechanism                   timeframe within which that notice
                                                  consumers could opt in (or later opt                    for third-party charges? For those                    must occur? Finally, what should the
                                                  back out) of third-party local and long-                carriers that do not currently offer the              consequences be if an executing carrier
                                                  distance service billing? What opt-in                   option to block third-party charges,                  fails to meet the deadline? The
                                                  options should be available for                         what costs would be associated with                   Commission seeks comment on the
                                                  consumers that do not have Internet                     making that protection available to                   effect the proposal would have on
                                                  access? What information, if any, should                consumers and how could the                           carrier billing systems and sales
                                                  be presented to consumers before they                   Commission craft rules to minimize                    practices. Finally, the Commission seeks
                                                  opt in to such third-party charges?                     those costs and burdens? Would the                    comment on whether its proposed
                                                  Should opting in last indefinitely, or                  costs to carriers be mitigated if the                 double-check would have any effect on
                                                  sunset after some period of time? Or                    timeframe to implement the opt-in                     number exhaustion by incenting carriers
                                                  could consumers opt in for only a single                mechanism was extended or if the opt-                 to issue new numbers to consumers
                                                  service change? How should consumers                    in mechanism was phased in, for                       while waiting for verification and
                                                  be made aware of the opt-in option?                     example, by requiring an opt-in for new               execution of the carrier change.
                                                  Should the Commission require                           customers only? Do small carriers have
                                                  providers to notify consumers at the                                                                             18. Currently, unless a consumer has
                                                                                                          unique implementation costs or other
                                                  point of sale? Should such notice appear                                                                      activated a preferred carrier freeze, the
                                                                                                          burdens, and if so, how should the
                                                  on the provider’s Web site and                                                                                slamming rules do not allow the
                                                                                                          Commission address those issues?
                                                  advertising materials or on consumers’                                                                        executing carrier to verify whether the
                                                  bills? The Commission notes that                        Double-Checking a Switch With the                     subscriber wants to change carriers
                                                  several carriers have committed to                      Consumer                                              when it receives a preferred carrier
                                                  blocking certain non-                                      16. Rather than requiring an opt in                change request because of previous
                                                  telecommunications third-party charges                  before placing third-party local or long-             Commission concerns that that
                                                  in the past. The Commission seeks                       distance charges on a bill, should the                approach would be expensive,
                                                  specific comments on the processes they                 Commission require the executing                      unnecessary, and duplicative of the
                                                  used to inform consumers about these                    carrier to confirm or ‘‘double-check’’                submitting carrier’s verification. At the
                                                  changes.                                                whether the consumer wants to switch                  time those rules were adopted, the local
                                                     14. The Commission also seeks                        providers before making the change?                   and long-distance markets had only
                                                  comment on several corner cases. For                    Requiring the executing carrier to                    been recently opened to competition,
                                                  local exchange carriers that do not offer               double-check a change request could be                and there was concern that an executing
                                                  long-distance service, should opt in be                 a strong anti-slamming safeguard                      carrier might intentionally delay the
                                                  required before any third-party long-                   because it gives the consumer a second                carrier change or attempt to retain the
                                                  distance service is charged to the                      opportunity to confirm a switch. If the               subscriber. Today, the market for
                                                  consumer or only any change in third-                   Commission were to adopt such a                       wireline communications services is
                                                  party long-distance service? For                        requirement, the Commission seeks                     more established and competitive, and
                                                  consumers that currently subscribe to a                 comment on how the Commission could                   consumers have access to a wide variety
                                                  third-party local or long-distance                      best implement it.                                    of providers and technologies to obtain
                                                  service, should those services be                          17. Would requiring that the                       long-distance services and are more
                                                  grandfathered? Or should those                          executing carrier obtain the consumer’s               likely to purchase bundles of services
                                                  consumers be considered to have opted                   consent in writing or through the email               from the same provider. In addition,
                                                  in already? And how should the                          address of record sufficiently protect                slamming has evolved, and the rules the
                                                  Commission structure any rule to                        consumers? Would mandating that the                   Commission adopted almost two
                                                  minimize the impact on single-use                       executing carrier obtain oral consent via             decades ago have not proven effective in
                                                  services—such as placing an                             a phone call to the consumer at the                   preventing slamming. Do market trends
                                                  international call through a third-party                telephone number of record provide                    involving stand-alone long-distance
                                                  carrier or receiving a collect call—or                  consumers with more protection from                   service impact the need for the type of
                                                  other legitimate third-party local or                   slamming? If the Commission requires                  slamming rules the Commission
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                                                  long-distance services that haven’t been                the executing provider to confirm a                   proposes? Based on the marketplace
                                                  subject to the same pattern of abuse that               switch request, what should the                       today, the Commission also seeks
                                                  the Commission has seen in recent                       executing carrier be required to ask (e.g.,           comment on the relationship between
                                                  slamming and cramming cases?                            ‘‘the submitting carrier says that you                the ease of switching voice providers
                                                     15. The Commission seeks comment                     would like to switch to them. Is that                 and broadband adoption. The
                                                  on the costs and benefits of an opt-in                  correct?’’)? Are there First Amendment                Commission seeks to avoid unintended
                                                  process for third-party local and long-                 implications related to prescribing the               negative consequences of its proposals.
                                                  distance charges. The Commission                        language to be used by the executing                  For example, would they effectively


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                                                  37834                  Federal Register / Vol. 82, No. 155 / Monday, August 14, 2017 / Proposed Rules

                                                  ‘‘lock’’ consumers into bundles of                      additional specific relief for smaller                purpose would not allow the re-
                                                  services that may not meet their current                carriers.                                             verification process to be used for
                                                  broadband needs? Finally, and                              21. Section 222(b) of the Act. When it             retention marketing, and any rule the
                                                  fundamentally, the Commission seeks                     previously determined that executing                  Commission adopts would bar the
                                                  comment on the prevalence of                            carriers should not verify carrier                    executing carrier from using the
                                                  incidences of slamming as seen in its                   changes, the Commission expressed                     confirmation process for marketing or
                                                  enforcement actions versus the number                   concern that such verification would                  anticompetitive purposes. The
                                                  of legitimate carrier changes that occur.               violate section 222(b) of the Act. Section            Commission seeks comment on this
                                                     19. Given these changes in the                       222(b) of the Act states that a carrier that          view, and on how its rules could best
                                                  marketplace and the continued and                       ‘‘receives or obtains proprietary                     implement such a bar.
                                                  evolving problem of slamming faced by                   information from another carrier for
                                                  consumers, the Commission seeks                         purposes of providing any                             Other Measures
                                                  comment on whether the Commission’s                     telecommunications service shall use                  Recording Sales Calls
                                                  previous concerns about delays and                      such information only for such purpose,
                                                  anti-competitive practices that could                   and shall not use such information for                   24. The Commission’s current
                                                  arise from a double-check requirement                   its own marketing efforts.’’ The                      verification rules provide that carriers
                                                  are still valid. If the previous concerns               Commission found that the information                 shall not submit or execute carrier
                                                  are still well-founded, are those                       contained in a submitting carrier’s                   changes without authorization from the
                                                  concerns now outweighed by other                        change request is proprietary because                 subscriber and verification of that
                                                  factors, such as ensuring that consumers                the submitting carrier must provide                   authorization. The Commission seeks
                                                  are not victimized by the new forms of                  information regarding the consumer’s                  comment on whether submitting
                                                  slamming? The Commission seeks                          choice of long-distance providers to the              carriers that rely on TPVs should be
                                                  comment on whether and how the                          executing carrier, to which the                       required to record the entire sales call
                                                  changed circumstances since 1998 have                   executing carrier would otherwise not                 that precedes a switch. The Commission
                                                  reduced the danger of anti-competitive                  have access, to obtain provisioning of                seeks comment on how to define a sales
                                                  behavior, as well as how to structure a                 service for the new subscriber. Thus,                 call. The Commission believes that a
                                                  double-check mechanism to avoid or                      under the Commission’s current rules                  requirement to record all sales calls
                                                  limit any competitive harms. Similar to                 the executing carrier can only use the                would deter misrepresentation and aid
                                                  its proposals above, the Commission                     information to provide service to the                 enforcement if misrepresentation does
                                                  seeks comment on whether it should                      submitting carrier, i.e., changing the                occur. The Commission seeks comment
                                                  extend its proposal to CMRS and                         subscriber’s carrier, and may not                     on this view.
                                                  interconnected VoIP providers. In the                   attempt to verify that subscriber’s
                                                  past, the Commission expressed concern                  decision to change carriers.                             25. If the Commission requires that
                                                  that requiring verification by the                         22. The Commission notes that                      sales calls be recorded, should the
                                                  executing carrier could be a de facto                   section 222(d)(2) of the Act provides an              Commission require the same two-year
                                                  preferred carrier freeze without the                    exception allowing the carrier to use the             retention of the recordings as it
                                                  consumer’s consent that would take                      customer information ‘‘to protect users               currently does for TPV calls? Should the
                                                  control away from consumers. The                        of those services and other carriers from             Commission also require that sales
                                                  Commission seeks comment on whether                     fraudulent, abusive, or unlawful use of,              representatives give the consumer
                                                  the Commission should adopt both a                      or subscription to such services.’’ The               specific information to help them
                                                  verification by the executing carrier and               Commission tentatively concludes that                 understand the call’s purpose, for
                                                  the default carrier freeze proposed                     this exception supports its proposals to              example: (1) The identity of the
                                                  above. Are these processes duplicative                  allow the executing carrier to use the                company that is calling or on whose
                                                  and if so, does it make sense to provide                customer information to re-verify that                behalf the call is being made; (2) that the
                                                  consumers with two levels of protection                 the consumer wants to change                          sales representative is not affiliated with
                                                  against slamming? Does one option                       providers. The Commission seeks                       the consumer’s current long-distance,
                                                  benefit consumers in ways that the other                comment on this interpretation. The                   international, or other toll carrier (if
                                                  does not? The Commission seeks                          Commission also seeks comment on                      true); and (3) the purpose of the call is
                                                  comment on the costs to consumers, if                   whether a carrier indeed is using the                 to inquire whether the consumer is
                                                  any, of both options.                                   ‘‘proprietary information’’ received from             authorized to make a change to and
                                                     20. The Commission also seeks                        a submitting carrier only for ‘‘purposes              wishes to change his or her long-
                                                  comment on the costs and benefits of                    of providing any telecommunications                   distance, international, or other toll
                                                  requiring some form of secondary                        service’’ if it uses that information to              service from his or her current preferred
                                                  verification by the executing carrier                   verify a carrier switch without                       carrier to the calling carrier. Should the
                                                  before switching a consumer’s long-                     conducting any additional marketing.                  Commission’s rules also prohibit the
                                                  distance provider. The Commission                       The Commission seeks comment on                       sales representative from (1) making any
                                                  believes the costs of requiring the                     whether double-checking by the                        false or misleading statements to the
                                                  executing carrier to perform a simple                   executing provider could be permissive,               consumer regarding the third-party
                                                  double-check by phone, email or in                      rather than required, and whether                     verifier or the role of the verifier, and (2)
                                                  writing would be fairly modest, yet the                 permissive double-checking would                      instructing the consumer in how he or
                                                  consumer benefit in stopping slamming                   fulfill the Commission’s policy goals of              she should respond to the verifier’s
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                                                  would be substantial. The Commission                    deterring slamming.                                   questions? In the alternative, the
                                                  seeks comment on these views and ask                       23. If the Commission determines that              Commission seeks comment on whether
                                                  commenters to provide details on costs                  section 222 of the Act supports                       recording the sales call should be
                                                  and benefits. The Commission also                       requiring executing carriers to confirm a             voluntary as opposed to being required
                                                  seeks comment on how it can further                     switching request, it is important to note            and whether a valid recording should
                                                  mitigate the costs by, for example,                     that the exceptions in section 222(d) of              serve as an affirmative defense if a
                                                  extending implementation deadlines of                   the Act that allow the carrier to use the             slamming complaint was filed against
                                                  any rules adopted and considering                       consumer information for a specific                   the carrier. Further, are there First


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                                                                         Federal Register / Vol. 82, No. 155 / Monday, August 14, 2017 / Proposed Rules                                            37835

                                                  Amendment implications related to                       third-party verifier to read off the                  and cramming is the placement of
                                                  prescribing specific notifications?                     numbers to be switched? Because the                   unauthorized charges on a consumer’s
                                                    26. The Commission does not believe                   third-party verifier must already obtain              telephone bill. Despite detailed
                                                  that requiring the disclosures discussed                specific information during the TPV, the              slamming rules and truth-in-billing
                                                  above, as well as recording and                         Commission does not believe adding                    rules, thousands of consumers are still
                                                  preserving the sales call, would be                     this requirement represents a significant             being slammed and billed for
                                                  costly for providers. At the same time,                 additional cost. But the Commission                   unauthorized charges. Since, 2010, the
                                                  based on evidence from recent                           believes it would benefit consumers by                Commission’s Enforcement Bureau has
                                                  consumer complaints and enforcement                     making it more difficult to falsify TPVs.             brought multiple actions against carriers
                                                  actions indicating that sales call                         29. Are there other ways to ensure the             for slamming and cramming violations.
                                                  misrepresentations are a significant                    validity of the TPV? For example,                     These actions have resulted in over $80
                                                  source of slamming, the Commission                      should the Commission require                         million dollars in fines and proposed
                                                  believes the benefits to consumers are                  certification of third-party verifiers by             forfeitures. The Commission believes
                                                  material. The Commission seeks                          either carriers or the Commission? Does               that adopting the proposals in document
                                                  comment on these views and asks                         the Commission have authority to                      FCC 17–91 will provide consumers with
                                                  commenters to provide details on costs                  require such certification? The                       the additional safeguards they need to
                                                  and benefits of its proposals. The                      Commission also seeks comment on                      protect themselves from this risk.
                                                  Commission also seeks comment on                        whether there are any current                            31. Specifically, document FCC 17–91
                                                  how it can further mitigate the costs by,               provisions in its verification                        seeks comment on whether and, if so,
                                                  for example, extending implementation                   requirements that it could update to                  how: (1) The Commission should codify
                                                  deadlines and considering additional                    make the rules clearer and easier to                  in a rule the prohibition against
                                                  specific relief for smaller carriers.                   follow. Should the Commission                         deceptive marketing and
                                                                                                          eliminate the requirement that verifiers              misrepresentations on the sales call; (2)
                                                  Third-Party Verifications
                                                                                                          must get confirmation of each                         the Commission should codify in a rule
                                                     27. The Commission seeks comment                     individual service sold (e.g., intraLATA              the prohibition against placing
                                                  on whether TPVs are an effective means                  and interLATA service)? Does this                     unauthorized charges on a consumer’s
                                                  of providing evidence that a consumer                   requirement make sense in today’s                     telephone bill; (3) the Commission
                                                  wishes to switch carriers. Would                        bundle-oriented marketplace? The                      should make preferred carrier freezes
                                                  eliminating TPVs as a verification                      Commission asks commenters to                         the default rather than something the
                                                  mechanism be effective in preventing                    provide details on costs and benefits of              consumer must initiate; (4) the
                                                  slamming and provide substantial                        implementing these potential rule                     Commission should require consumers
                                                  benefits to consumers? How would the                    changes. The Commission also seeks                    to opt in to third-party billing; (5) the
                                                  elimination of TPVs affect legitimate                   comment on how it can further mitigate                Commission should require executing
                                                  providers’ sales efforts? If the TPV is                 the costs by, for example, extending                  carriers to make contact with consumers
                                                  eliminated, are there other mechanisms                  implementation deadlines and                          to verify preferred carrier change
                                                  the Commission should put in place to                   considering additional specific relief for            requests prior to execution; (6) the
                                                  verify authorization of a carrier change?               smaller carriers.                                     Commission should require recording
                                                  Should consumers have the option to                                                                           and retention of the sales call; and (7)
                                                  sign up for service online after the sales              Initial Regulatory Flexibility Act
                                                                                                                                                                the Commission should modify the
                                                  call has ended, or to call a designated                 Analysis
                                                                                                                                                                verification rules relating to preferred
                                                  customer service number to confirm                         30. As required by the Regulatory                  carrier changes to require the consumer
                                                  their desire to switch long distance or                 Flexibility Act of 1980, as amended,                  to affirmatively list the telephone
                                                  other toll services? The Commission                     (RFA), the Commission has prepared the                numbers to be switched in a TPV, or
                                                  seeks comment on the impact of these                    Initial Regulatory Flexibility Analysis               update the TPV requirements to
                                                  or other verification mechanisms on                     (IRFA) of the possible significant                    eliminate the requirement to list all
                                                  competition. The Commission seeks                       economic impact on a substantial                      services being changed, or eliminate the
                                                  comment on the costs and benefits of                    number of small entities by the policies              TPV altogether as an option to verify
                                                  elimination of the TPV option. The                      and rules proposed in document FCC                    authorization of a carrier switch.
                                                  Commission also seeks comment on                        17–91. Written public comments are
                                                  how it can further mitigate any costs to                requested on the IRFA. Comments must                  Legal Basis
                                                  providers by, for example, extending                    be identified as responses to the IRFA                   32. The legal basis for any action that
                                                  implementation deadlines and                            and must be filed by the deadlines for                may be taken pursuant to document
                                                  considering additional specific relief for              comments on document FCC 17–91                        FCC 17–91 is contained in sections 1–
                                                  smaller carriers.                                       provided on the first page of document                4, 201(b), and 258 of the
                                                     28. If the Commission decides to                     FCC 17–91. The Commission will send                   Communications Act of 1934, as
                                                  retain TPVs as evidence of a consumer’s                 a copy of document FCC 17–91,                         amended, 47 U.S.C. 151–154, 201(b),
                                                  wish to switch providers, how might it                  including the IRFA, to the Chief                      258.
                                                  make them more difficult to falsify? The                Counsel for Advocacy of the Small
                                                  Commission’s rules require that TPVs                                                                          Description and Estimate of the Number
                                                                                                          Business Administration (SBA).
                                                  elicit certain information, including the                                                                     of Small Entities to Which the Proposed
                                                  subscriber’s identity, that the person on               Need for, and Objectives of, the                      Rules Will Apply
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                                                  the call is authorized and wishes to                    Proposed Rules                                          33. The RFA directs agencies to
                                                  make the switch, and the telephone                         30. Document FCC 17–91 contains                    provide a description of, and where
                                                  numbers to be switched. Should the                      proposals regarding how to strengthen                 feasible, an estimate of the number of
                                                  Commission update the TPV                               the Commission’s rules to prevent                     small entities that will be affected by the
                                                  requirements to require that consumers                  slamming and cramming. Slamming is                    proposed rules, if adopted. The RFA
                                                  affirmatively state all telephone                       the unauthorized change of a                          generally defines the term ‘‘small
                                                  numbers to be switched, rather than, as                 consumer’s preferred interexchange                    entity’’ as having the same meaning as
                                                  is currently permitted, to allow the                    telecommunications service provider                   the terms ‘‘small business,’’ ‘‘small


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                                                  37836                  Federal Register / Vol. 82, No. 155 / Monday, August 14, 2017 / Proposed Rules

                                                  organization,’’ and ‘‘small governmental                access to transmission facilities and                 a single technology or a combination of
                                                  jurisdiction.’’ In addition, the term                   infrastructure that they own and/or                   technologies. Establishments in this
                                                  ‘‘small business’’ has the same meaning                 lease for the transmission of voice, data,            industry use the wired
                                                  as the term ‘‘small business concern’’                  text, sound, and video using wired                    telecommunications network facilities
                                                  under the Small Business Act. Under                     communications networks.                              that they operate to provide a variety of
                                                  the Small Business Act, a ‘‘small                       Transmission facilities may be based on               services, such as wired telephony
                                                  business concern’’ is one that: (1) Is                  a single technology or a combination of               services, including VoIP services, wired
                                                  independently owned and operated; (2)                   technologies. Establishments in this                  (cable) audio and video programming
                                                  is not dominant in its field of operation;              industry use the wired                                distribution, and wired broadband
                                                  and (3) meets any additional criteria                   telecommunications network facilities                 internet services. By exception,
                                                  established by the Small Business                       that they operate to provide a variety of             establishments providing satellite
                                                  Administration.                                         services, such as wired telephony                     television distribution services using
                                                                                                          services, including VoIP services, wired              facilities and infrastructure that they
                                                  Wireline Carriers
                                                                                                          (cable) audio and video programming                   operate are included in this industry.’’
                                                     34. Incumbent Local Exchange                         distribution, and wired broadband                     Under that size standard, such a
                                                  Carriers (Incumbent LECs). Neither the                  internet services. By exception,                      business is small if it has 1,500 or fewer
                                                  Commission nor the SBA has developed                    establishments providing satellite                    employees. Census data for 2012 show
                                                  a small business size standard                          television distribution services using                that there were 3,117 firms that operated
                                                  specifically for incumbent local                        facilities and infrastructure that they               that year. Of this total, 3,083 operated
                                                  exchange services. The closest                          operate are included in this industry.’’              with fewer than 1,000 employees.
                                                  applicable size standard under SBA                      Under that size standard, such a                      Consequently, the Commission
                                                  rules is for the category Wired                         business is small if it has 1,500 or fewer            estimates that the majority of IXCs are
                                                  Telecommunications Carriers. The U.S.                   employees. Census data for 2012 show                  small entities.
                                                  Census Bureau defines this industry as                  that there were 3,117 firms that operated
                                                  ‘‘establishments primarily engaged in                                                                            38. Other Toll Carriers. Neither the
                                                                                                          that year. Of this total, 3,083 operated              Commission nor the SBA has developed
                                                  operating and/or providing access to                    with fewer than 1,000 employees.
                                                  transmission facilities and infrastructure                                                                    a size standard for small businesses
                                                                                                          Consequently, the Commission
                                                  that they own and/or lease for the                                                                            specifically applicable to Other Toll
                                                                                                          estimates that most providers of
                                                  transmission of voice, data, text, sound,                                                                     Carriers. This category includes toll
                                                                                                          competitive local exchange service,
                                                  and video using wired communications                                                                          carriers that do not fall within the
                                                                                                          competitive access providers, Shared-
                                                  networks. Transmission facilities may                                                                         categories of interexchange carriers,
                                                                                                          Tenant Service Providers, and other
                                                  be based on a single technology or a                                                                          operator service providers, pre-paid
                                                                                                          local service providers are small
                                                  combination of technologies.                                                                                  calling card providers, satellite service
                                                                                                          entities.
                                                  Establishments in this industry use the                    36. The Commission has included                    carriers, or toll resellers. The closest
                                                  wired telecommunications network                        small incumbent LECs in this present                  applicable size standard under SBA
                                                  facilities that they operate to provide a               RFA analysis. As noted above, a ‘‘small               rules is for Wired Telecommunications
                                                  variety of services, such as wired                      business’’ under the RFA is one that,                 Carriers. The U.S. Census Bureau
                                                  telephony services, including VoIP                      inter alia, meets the pertinent small                 defines this industry as ‘‘establishments
                                                  services, wired (cable) audio and video                 business size standard (e.g., a telephone             primarily engaged in operating and/or
                                                  programming distribution, and wired                     communications business having 1,500                  providing access to transmission
                                                  broadband internet services. By                         or fewer employees), and ‘‘is not                     facilities and infrastructure that they
                                                  exception, establishments providing                     dominant in its field of operation.’’ The             own and/or lease for the transmission of
                                                  satellite television distribution services              SBA’s Office of Advocacy contends that,               voice, data, text, sound, and video using
                                                  using facilities and infrastructure that                for RFA purposes, small incumbent                     wired communications networks.
                                                  they operate are included in this                       LECs are not dominant in their field of               Transmission facilities may be based on
                                                  industry.’’ Under that size standard,                   operation because any such dominance                  a single technology or a combination of
                                                  such a business is small if it has 1,500                is not ‘‘national’’ in scope. The                     technologies. Establishments in this
                                                  or fewer employees. Census data for                     Commission has therefore included                     industry use the wired
                                                  2012 show that there were 3,117 firms                   small incumbent LECs in this RFA                      telecommunications network facilities
                                                  that operated that year. Of this total,                 analysis, although it emphasizes that the             that they operate to provide a variety of
                                                  3,083 operated with fewer than 1,000                    RFA action has no effect on Commission                services, such as wired telephony
                                                  employees. Consequently, the                            analyses and determinations in other,                 services, including VoIP services, wired
                                                  Commission estimates that most                          non-RFA contexts.                                     (cable) audio and video programming
                                                  providers of incumbent local exchange                      37. Interexchange Carriers (IXCs).                 distribution, and wired broadband
                                                  service are small businesses.                           Neither the Commission nor the SBA                    internet services. By exception,
                                                     35. Competitive Local Exchange                       has developed a small business size                   establishments providing satellite
                                                  Carriers (Competitive LECs),                            standard specifically for providers of                television distribution services using
                                                  Competitive Access Providers (CAPs),                    interexchange services. The appropriate               facilities and infrastructure that they
                                                  Shared-Tenant Service Providers, and                    size standard under SBA rules is for the              operate are included in this industry.’’
                                                  Other Local Service Providers. Neither                  category Wired Telecommunications                     Under that size standard, such a
                                                  the Commission nor the SBA has                          Carriers. The U.S. Census Bureau                      business is small if it has 1,500 or fewer
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                                                  developed a small business size                         defines this industry as ‘‘establishments             employees. Census data for 2012 show
                                                  standard specifically for these service                 primarily engaged in operating and/or                 that there were 3,117 firms that operated
                                                  providers. The appropriate size standard                providing access to transmission                      that year. Of this total, 3,083 operated
                                                  under SBA rules is for the category                     facilities and infrastructure that they               with fewer than 1,000 employees. Thus,
                                                  Wired Telecommunications Carriers.                      own and/or lease for the transmission of              under this category and the associated
                                                  The U.S. Census Bureau defines this                     voice, data, text, sound, and video using             small business size standard, the
                                                  industry as ‘‘establishments primarily                  wired communications networks.                        majority of Other Toll Carriers can be
                                                  engaged in operating and/or providing                   Transmission facilities may be based on               considered small.


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                                                                         Federal Register / Vol. 82, No. 155 / Monday, August 14, 2017 / Proposed Rules                                                37837

                                                  Wireless Carriers                                       Description of Projected Reporting,                   being charged for services they never
                                                                                                          Recordkeeping, and Other Compliance                   authorized and in some instances never
                                                     39. Wireless Telecommunications                      Requirements for Small Entities                       received. In addition, consumers must
                                                  Carriers (except Satellite). Since 2007,                                                                      expend significant time and energy
                                                  the Census Bureau has placed wireless                      42. Document FCC 17–91 contains
                                                                                                          proposals regarding how to strengthen                 trying to recoup these costs and get back
                                                  firms within this new, broad, economic                                                                        to the provider of their choice. In
                                                                                                          the Commission’s rules to prevent
                                                  census category. Under the present and                                                                        document FCC 17–91 the Commission
                                                                                                          slamming and cramming. Until the
                                                  prior categories, the SBA has deemed a                  proposed rules are defined in full, it is             specifically asks how to minimize the
                                                  wireless business to be small if it has                 not possible to predict with certainty                economic impact of its proposals on
                                                  1,500 or fewer employees. For the                       whether the costs of compliance will be               small entities. For instance, the
                                                  category of Wireless                                    proportionate between small and large                 Commission seeks comment on the
                                                  Telecommunications Carriers (except                     providers. The Commission seeks to                    specific costs of the measures it
                                                  Satellite), Census data for 2012 show                   minimize the burden associated with                   discusses in document FCC 17–91, and
                                                  that there were 967 firms that operated                 reporting, recordkeeping, and other                   ways it might mitigate any
                                                  for the entire year. Of this total, 955                 compliance requirements for the                       implementation costs, including by
                                                  firms had fewer than 1,000 employees.                   proposed rules.                                       extending implementation deadlines for
                                                  Thus under this category and the                           43. The proposals under                            small carriers. It also particularly asks
                                                  associated size standard, the                           consideration could result in additional              whether smaller carriers face unique
                                                  Commission estimates that the majority                  costs to regulated entities. These                    implementation costs and, if so, how the
                                                  of wireless telecommunications carriers                 proposals may necessitate that some                   Commission might address those
                                                  (except satellite) are small entities.                  carriers create new processes or make                 concerns. In addition, for example, it
                                                                                                          changes to their existing processes                   seeks comment on alternatives for how
                                                  Similarly, according to internally
                                                                                                          which would impose some additional                    a carrier should obtain a consumer’s
                                                  developed Commission data, 413
                                                                                                          costs to carriers. Document FCC 17–91                 decision to opt in to third-party charges,
                                                  carriers reported that they were engaged                                                                      if the Commission decides to adopt an
                                                  in the provision of wireless telephony,                 proposes to require: Reverification by
                                                                                                          the executing carrier; a default carrier              ‘‘opt-in’’ approach. Finally, the
                                                  including cellular service, Personal                                                                          Commission seeks comment on the
                                                  Communications Service PCS, and                         freeze and procedures to lift the freeze;
                                                                                                          recording of sales calls and retention of             overall economic impact these proposed
                                                  Specialized Mobile Radio SMR services.                                                                        rules may have on carriers because the
                                                  Of this total, an estimated 261 have                    such recordings for two years; certain
                                                                                                          information be conveyed during the                    Commission seeks to minimize all costs
                                                  1,500 or fewer employees. Thus, using                                                                         associated with these proposed rules.
                                                                                                          sales call; implementation of new
                                                  available data, the Commission                                                                                   46. The Commission expects to
                                                                                                          marketing methods; and an explicit opt-
                                                  estimates that the majority of wireless                                                                       consider the economic impact on small
                                                                                                          in decision for third-party billing. These
                                                  firms can be considered small.                          proposals may require changes to                      entities, as identified in comments filed
                                                                                                          certain carrier processes. However,                   in response to document FCC 17–91 and
                                                  Resellers                                                                                                     the IRFA, in reaching its final
                                                                                                          some carriers may already be in
                                                     40. Local Resellers. The SBA has                     compliance with some of these                         conclusions and taking action in this
                                                  developed a small business size                         requirements and therefore, no                        proceeding.
                                                  standard for the category of                            additional compliance efforts will be                 Federal Rules That May Duplicate,
                                                  Telecommunications Resellers. Under                     required.                                             Overlap, or Conflict With the Proposed
                                                  that size standard, such a business is                                                                        Rules
                                                                                                          Steps Taken To Minimize Significant
                                                  small if it has 1,500 or fewer employees.               Economic Impact on Small Entities, and                  47. None.
                                                  Census data for 2012 show that 1,341                    Significant Alternatives Considered
                                                  firms provided resale services during                                                                         List of Subjects in 47 CFR Part 64
                                                  that year. Of that number, all operated                    44. The RFA requires an agency to                    Claims, Communications common
                                                  with fewer than 1,000 employees. Thus,                  describe any significant alternatives that            carriers, Computer technology, Credit,
                                                  under this category and the associated                  it has considered in reaching its                     Foreign relations, Individuals with
                                                  small business size standard, the                       proposed approach, which may include                  disabilities, Political candidates, Radio,
                                                                                                          the following four alternatives (among                Reporting and recordkeeping
                                                  majority of these pre-paid calling card
                                                                                                          others): (1) The establishment of                     requirements, Telecommunications,
                                                  providers can be considered small
                                                                                                          differing compliance or reporting                     Telegraph, Telephone.
                                                  entities.                                               requirements or timetables that take into
                                                     41. Toll Resellers. The SBA has                      account the resources available to small              Federal Communications Commission.
                                                  developed a small business size                         entities; (2) the clarification,                      Katura Jackson,
                                                  standard for the category of                            consolidation, or simplification of                   Federal Register Liaison Officer, Office of the
                                                  Telecommunications Resellers. Under                     compliance or reporting requirements                  Secretary.
                                                  that size standard, such a business is                  under the rule for small entities; (3) the              For the reasons discussed in the
                                                  small if it has 1,500 or fewer employees.               use of performance, rather than design,               preamble, the Federal Communications
                                                  Census data for 2012 show that 1,341                    standards; and (4) an exemption from                  Commission proposes to amend 47 CFR
                                                                                                          coverage of the rule, or any part thereof,
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                                                  firms provided resale services during                                                                         part 64 as follows:
                                                  that year. Of that number, all operated                 for small entities.
                                                  with fewer than 1,000 employees. Thus,                     45. The Commission proposes rules to               PART 64—MISCELLANEOUS RULES
                                                  under this category and the associated                  eliminate slamming and cramming on                    RELATING TO COMMON CARRIERS
                                                  small business size standard, the                       consumers’ bills. The Commission
                                                                                                          believes that any economic burden these               ■ 1. The authority citation for part 64
                                                  majority of these pre-paid calling card                                                                       continues to read as follows:
                                                  providers can be considered small                       proposed rules may have on carriers is
                                                                                                          outweighed by the considerable benefits                 Authority: 47 U.S.C. 154, 225, 254(k),
                                                  entities.
                                                                                                          to consumers. Consumers are currently                 403(b)(2)(B), (c), 715, Pub. L. 104–104, 110



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                                                  37838                  Federal Register / Vol. 82, No. 155 / Monday, August 14, 2017 / Proposed Rules

                                                  Stat. 56. Interpret or apply 47 U.S.C. 201,               (i) Authorization from the subscriber,              § 64.2401   Truth-in Billing Requirements.
                                                  218, 222, 225, 226, 227, 228, 254(k), 616, 620,         subject to the following:                             *      *    *     *    *
                                                  and the Middle Class Tax Relief and Job
                                                                                                            (A) Misrepresentation and/or                          (g) Prohibition against unauthorized
                                                  Creation Act of 2012, Pub. L. 112–96, unless
                                                  otherwise noted.                                        deception on the sales call is prohibited.            charges. Carriers shall not place or cause
                                                                                                          Authorization is not valid if there is any            to be placed on any telephone bill
                                                  ■ 2. Amend § 64.1120 by revising                        misrepresentation and/or deception                    charges that have not been authorized
                                                  paragraph (a)(1)(i) to read as follows:                 when making the sales call.                           by the subscriber. For purposes of this
                                                                                                                                                                subsection, telephone bill means any
                                                  § 64.1120 Verification of orders for                      (B) [Reserved]                                      bill that contains charges for an
                                                  telecommunications services.                            *     *     *     *    *                              interstate telecommunications service.
                                                      (a) * * *                                           ■ 3. Amend § 64.2401 by adding                        [FR Doc. 2017–16961 Filed 8–11–17; 8:45 am]
                                                      (1) * * *                                           paragraph (g) to read as follows:                     BILLING CODE 6712–01–P
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Document Created: 2018-10-24 11:50:39
Document Modified: 2018-10-24 11:50:39
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments are due on or before September 13, 2017, and reply comments are due on or before October 13, 2017.
ContactKimberly A. Wild, Consumer Policy Division, Consumer and Governmental Affairs Bureau (CGB), at (202) 418- 1324, email: [email protected]
FR Citation82 FR 37830 
CFR AssociatedClaims; Communications Common Carriers; Computer Technology; Credit; Foreign Relations; Individuals with Disabilities; Political Candidates; Radio; Reporting and Recordkeeping Requirements; Telecommunications; Telegraph and Telephone

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