Telephone slamming

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Telephone slamming is an illegal telecommunications practice of changing subscribers' telephone service without their consent. Slamming became a more visible issue after the deregulation of the telecommunications industry in the mid-1980s, especially after several brutal price wars between the major telecommunications companies.

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[edit] How slamming happens

In the United States, local carriers have been responsible for distributing telephone numbers to individuals and businesses since AT&T split up into local and long-distance carriers as a result of deregulation. Orders to change long distance carriers would be submitted to them, and the local carrier would make the change. In the most common scenario regarding slamming, an employee of a telephone company (usually a telemarketer making outbound calls to prospective clients) would submit an order to change carriers to the local exchange carrier without the approval of the customer.

In the United Kingdom, landline telecommunications services were provided exclusively by BT until 1984 when the industry was deregulated, and the number of independent operators providing fixed-line domestic telephone services increased. Similar fraudulent sales practices have been alleged by British customers who claim that their landline service has been switched to a new service provider [1].

Slamming can also occur when someone is invited to take a survey or enter a contest. The contests or surveys are usually general in nature, and the participant is unaware that the "small print" on their entry is an authorization to switch their telephone service to another carrier.

Slamming has traditionally meant the selection of another long-distance carrier without the subscriber's consent; however, as the US market has expanded, and choice of local long-distance service and local service providers has increased over the last 10 years, there have been some instances of slamming for those services as well.

The problem has not been limited to landlines. In Britain, complaints have been received by OFCOM relating to mobile telephone contracts being renewed without the consent of cusomers [2].

There have also been cases of slamming for secondary services (such as voice mail, etc.), or of mobile telephone companies using private data to switch customers onto landline services provided by their subsidiaries [3].

[edit] Steps to prevent slamming

[edit] United States

Most US local carriers have instituted a number of steps to prevent slamming. Subscribers can request a "freeze" on their long distance and local long-distance services. This means that no changes will take place unless the local carrier receives a request from the service provider in writing.

Industry regulators advise consumers to read their telephone bill and question any charges they do not recognize. Bills must contain the name and logo of any company whose charges are appearing on your bill. (See cramming for more information about other types of charges that may appear on a bill.)

Because of repeated complaints from consumers, and legislative actions at the state and federal level, companies are now required to submit any verbal request for change of services to a third-party verification services. The third party verification service will record the conversation and verify that the person calling does indeed want to select a new long-distance carrier or in some way change their service(s).

Consumers are advised to decline verbally any telemarketer offer if they do not wish to change their services, or if they are unfamiliar with the company or the services offered.

[edit] United Kingdom

In the United Kingdom, the governmental organisation OFCOM is responsible for regulating the telecoms industry. OFCOM has powers to take action against companies that engage in mis-selling and slamming, and can fine these companies up to ten per cent of their turnover [4]. In 2007, these rules were extended to include mis-selling of voice and broadband services using full Local Loop Unbundling (LLU) technology [5].

British consumers who suspect they have fallen victim to slamming are able to report the incident to OFCOM[1].

[edit] See also

[edit] References

  1. ^ "Phone scam hits thousands", Daily Mail, 2005-04-25. Retrieved on 2007-03-19. 
  2. ^ "Orange slammed as users see red", The Guardian, 2007-07-23. Retrieved on 2007-07-23. 
  3. ^ "When slamming the phone prompts a row", The Guardian, 2005-04-23. Retrieved on 2007-03-19. 
  4. ^ "Landline Phones - advice about privacy, security issues and unwanted calls", OFCOM. Retrieved on 2007-06-23. 
  5. ^ "Protecting consumers from mis-selling", OFCOM, 2007-05-21. Retrieved on 2007-06-23. 


[edit] External links