Attorney General's News Release

Nov. 23, 1998

Texas business to pay $27,500 to state, restitution to consumers to resolve slamming allegations

Jefferson City, Mo. — Attorney General Jay Nixon today announced that a Houston business that allegedly switched the long distance service of Missourians without their knowledge or consent -- a practice known as slamming -- will provide full reimbursement to those consumers and pay $27,500 to the state in penalties and costs.

Nixon filed a lawsuit in March against Telecommunications Co. of the Americas Inc., or Telcam, for allegedly using sweepstakes entry boxes and forged signatures to slam phone customers.

Under the permanent injunction issued in Jackson County Circuit Court, Telcam will provide refunds to consumers who were slammed, pay civil penalties of $17,500 to the state and reimburse the state $10,000 for the costs of investigation and prosecution.

The order also prohibits Telcam from:

• Billing, charging, attempting to collect and receiving payments for long distance services from consumers who did not order them.
• Forging consumers' signatures on letters of authorization, which are used to switch services.
• Using advertising, sweepstakes or other contests which may mislead consumers.

Nixon gave several tips for consumers to avoid or correct unwanted phone service charges:

• Always read your phone bill carefully. If there are charges you don't understand, call your local phone company for an explanation. If you are being billed for a service you did not order, ask the phone company to remove the charge.
• Avoid entering contests that require you to put your signature on the entry form. If you do enter such contests, read the fine print carefully to make certain you are not authorizing unwanted phone service. If you receive a telemarketing solicitation for phone service, listen carefully to any instructions at the beginning of the call. Be careful not to answer "yes" to anything that might inadvertently authorize an unwanted phone service.

Contact the Attorney General's Office at 800-392-8222 or the Federal Communications Commission to file a complaint. Complaints to the FCC should be sent to FCC, Consumer Protection Branch, Mail Stop 1600A2, Washington, DC 20006.

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