Implications of the new FCC anti-slamming rules

In late December 1998, the Federal Communications Commission (FCC) adopted new rules to combat slamming - the unauthorized switching of a consumer's telephone service. The rules eliminate the so-called "welcome package," require verification on inbound, as well as outbound, telemarketing orders and require verification on carrier freezes (in which the local company agrees not to change the customer's service without direct instructions from the customer). In addition, the FCC decided to absolve consumers from any payment to alleged slammers for the first 30 days of service.

Of all the changes, however, the most surprising was the FCC's decision to put the first round of slam ming …