FCC Proposes $5.2 Million Fine Against Us Telecom Long Distance, Inc., For Deceptive Slamming, Cramming, And Billing Practices

For the second time in as many months, the Federal Communications Commission has proposed a multi-million dollar forfeiture against a telephone carrier for apparently engaging in deceptive marketing practices, changing consumers’ preferred long distance carriers without proper authorization (“slamming”), billing consumers for unauthorized charges (“cramming”), and failing to describe telephone charges plainly and clearly as required by federal law.

The most recent enforcement action proposes a $5.23 million forfeiture against US Telecom Long Distance (USLTD). Numerous consumers complained that USLTD’s telemarketers had tricked them into believing that the telemarketers were calling on behalf of the consumers’ existing long distance providers. The consumers were then shocked to learn that USLTD had switched their preferred long distance carrier and billed them for charges they had not authorized. In many cases, USLTD apparently took advantage of consumers by masking the true purpose of the call and then profiting from their obvious confusion about the questions they were asked. Many of the deceived consumers were elderly, hearing impaired, or infirm.