Media Contact:
Will Wiquist, (202) 418-0509
will.wiquist@fcc.gov
For Immediate Release
FCC PLANS $2.4 MILLION FINE AGAINST MICHIGAN COMPANY
FOR MISLEADING CONSUMERS
Long Distance Consolidated Billing Company' Allegedly Changed and Added
Charges To Consumers' Accounts Without Authorization
--
WASHINGTON, July 30, 2015 - The Federal Communications Commission plans a $2.4 million
fine against Long Distance Consolidated Billing Company. This telephone company, based in
Waterford, Michigan, allegedly switched consumers' regional toll service providers without their
authorization ( slamming ), misrepresented the company's identity during telemarketing calls,
and placed unauthorized charges on consumers' telephone bills ( cramming ).
It is unacceptable for any company to pad unauthorized charges on bills or trick consumers into
changing their preferred phone company, said Travis LeBlanc, Chief of the FCC Enforcement
Bureau. The FCC will not tolerate companies that deceive consumers into changing their
telephone services or carriers.
The Enforcement Bureau reviewed over 70 complaints against Long Distance Consolidated
Billing Company (LDCB) that consumers filed with the Commission, the Better Business
Bureau, state regulatory agencies, and directly with LDCB. Consumers repeatedly complained
that LDCB switched their regional toll service providers without their authorization. In some
cases, consumers stated that LDCB's telemarketer pretended to be employed by the consumer's
own telephone carrier. The investigation also showed that LDCB placed charges for its service
on consumers' local telephone bills without their authorization.
The Commission has charged LDCB with willfully and repeatedly switching consumers'
preferred regional toll carrier without verified authorization, misrepresenting its identity to
consumers, and cramming unauthorized charges onto consumers' telephone bills. Commission
rules prohibit a carrier from switching a customer's preferred long distance carrier without
obtaining authorization from the customer to make such a change. The Communications Act
makes it unlawful for a carrier to misrepresent its identity or the nature of its service to obtain that
authorization. The Act also makes it unlawful for a carrier to include unauthorized charges or
fees on consumers' telephone bills.
With today's action, the Commission has now taken more than 30 enforcement actions for
cramming or slamming in the past five years. These actions collectively have announced more
than $110 million in penalties to the U.S. Treasury, and are slated to return more than $250
million to consumers.
For more information about the FCC's rules protecting consumers from unauthorized charges on
telephone bills, see the FCC consumer guide to slamming, http://go.usa.gov/3AqPW, or
cramming, http://go.usa.gov/3AqPR.
To file a complaint with the FCC, go to https://consumercomplaints.fcc.gov/hc/en-us or contact
the FCC's Consumer Center by calling 1-888-CALL-FCC (1-888-225-5322) voice or 1-888-
TELL-FCC (1-888-835-5322) TTY; faxing 1-866-418-0232; or by writing to:
Federal Communications Commission
Consumer and Governmental Affairs Bureau
Consumer Inquiries and Complaints Division
445 12th Street, SW
Washington, DC 20554
The Notice of Apparent Liability is available at: https://apps.fcc.gov/edocs_public/attachmatch/
FCC-15-96A1.pdf
Action by the Commission July 30, 2015 by Order (FCC 15-96). Chairman Wheeler,
Commissioners Clyburn, Rosenworcel, Pai, and O'Rielly.
###
Office of Media Relations: (202) 418-0500
TTY: (888) 835-5322
Twitter: @FCC
www.fcc.gov/office-media-relations
This is an unofficial announcement of Commission action. Release of the full text of a Commission order
constitutes official action. See MCI v. FCC, 515 F.2d 385 (D.C. Cir. 1974).
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