Attorney General's News Release

March 28, 1997

Long-distance carrier slammed customers, Nixon charges; asks court to prohibit it from doing business in Missouri

St. Charles, Mo. — Attorney General Jay Nixon filed suit today against Phone Calls Inc., an Arlington, Va., long-distance carrier that Nixon said blatantly "slammed"and billed Missourians for telephone calls without their authorization.

The Attorney General's Office has received more than 110 complaints and inquiries about Phone Calls Inc. in regard to slamming, which refers to the unauthorized switching of a consumer's long-distance carrier.

Nixon said that Phone Calls Inc., which also does business in Missouri as Charity Long Distance, and its president, Daniel Fletcher, violated the state's unlawful merchandising practices law by:

• Switching consumers' long-distance carriers without letters of authorization from the consumers.
• Billing consumers who were slammed at rates substantially higher than the original carrier's rates.
• Switching carriers based on letters of authorization from people without authority to make a switch.
• Telling consumers that they had authorized a change in long-distance service when they had not.
• Continuing to bill slammed consumers who complained to the company that the switches were unauthorized.

"Even when Phone Calls Inc. has been confronted by consumers about the slamming, the company has lied to many of them about the authorization and has continually thrown up roadblocks to frustrate them,"Nixon said. "They've shown little regard for consumers in their business practices, and we want them out of the long-distance business in Missouri."

Nixon's suit, filed in St. Charles County Circuit Court, asks for a court order to keep Phone Calls Inc. and Fletcher from selling long-distance service in Missouri and for the Missouri Public Service Commission to revoke Phone Call Inc.'s authority to offer long-distance service. The suit also asks for restitution to consumers and any civil penalties and court costs to be determined by the court.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818