GPSPS Fined $9M for Illegal Phone Co. Swaps, Charges, Fake Recordings

Media Contact:

Shannon Gilson, (202) 418-0505

Shannon.Gilson@fcc.gov

For Immediate Release

FCC FINES GPSPS $9.065 MILLION FOR ILLEGALLY BILLING

CUSTOMERS AND SWITCHING THEIR PHONE COMPANES

Long Distance Carrier Relied on Fabricated Authorization Recordings to Mislead

the Commission and State Regulators

--

WASHINGTON, July 23, 2015 - The Federal Communications Commission has fined GPSPS,

Inc., an Atlanta, GA telephone company, $9,065,000 for switching consumers' long distance

carriers without their authorization ( slamming ), billing consumers for unauthorized charges

( cramming ), and submitting falsified evidence to government regulatory officials as proof

that consumers had authorized the company to switch their long distance providers.

Companies that engage in these practices betray consumers who trust that their telephone bills

will contain only authorized charges, said Travis LeBlanc, Chief of the Enforcement Bureau.

Today's announcement makes clear that the FCC will take strong action against those who

switch consumers' telephone carriers without authorization and then mislead the government to

try to avoid detection.

The Enforcement Bureau reviewed more than 150 complaints against GPSPS that consumers

filed with the Commission, the Federal Trade Commission, the Public Utility Commission of

Texas, and the Better Business Bureau. Consumers complained that GPSPS switched their long

distance service provider without their authorization even though they had never heard of or

spoken to the company before discovering GPSPS's charges on their telephone bills. In many

cases, GPSPS refused to refund all of the unauthorized fees it charged consumers.

Instead, the company misrepresented to consumers that they or someone in their household had

authorized GPSPS's service, and that GPSPS possessed an audio recording evidencing the

authorization. The audio verification recordings GPSPS mentioned to consumers were fake.

GPSPS submitted these fabricated recordings to the Commission and state regulatory authorities

as proof that the consumers authorized its service.

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 have announced more than $100

million in penalties, 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

phone bills, see the FCC consumer guide, Cramming - Unauthorized, Misleading, or Deceptive

Charges Placed on Your Telephone Bill. For information about other communications issues,

visit the FCC's Consumer website, 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 Forfeiture Order is available at: https://apps.fcc.gov/edocs_public/attachmatch/FCC-15-

93A1.pdf

The Notice of Apparent Liability is available at:

https://apps.fcc.gov/edocs_public/attachmatch/FCC-15-26A1.pdf

Action by the Commission July 23, 2015 by Order (FCC 15-93). Chairman Wheeler,

Commissioners Clyburn, Rosenworcel, Pai, and O'Rielly. Commissioner Pai issuing a statement.

###

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).

LINK:	http://www.fcc.gov/document/gpsps-fined-9m-illegal-phone-co-swaps-char...
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