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Archive of News & Human Interest - March 2002

March 09, 2002 - LEVIN WARNS CONSUMERS OF NEW TELEPHONE SCAM - Senate Subcommittee Attacks One of Michigan's Major Consumer Complaints, Washington--"The telephone cramming scam has to be cleaned up," Sen. Carl Levin (D-Mich.) said today at the Senate Permanent Subcommittee on Investigations hearing. "Consumers should not be billed for telephone services without their consent. We need to both raise consumer awareness, and also determine what more can be done by our enforcement agencies to control this problem." The Michigan Public Service Commission is receiving an average of 10 complaints a day about telephone bills which includes cramming. These kinds of complaints have increased over 200% during the first six months of 1998. Telephone billing complaints, the majority of which are cramming complaints, are currently the #1 complaint to the commission.

"It is critical that consumers carefully review their telephone bill every month. Cramming charges often go unnoticed because they are listed on a phone bill under nondescript names like 'enhanced services.' Cramming victims are victims of deceptive practices and too often are wittingly paying for services such as voice mail, paging or personal toll-free numbers which they did not knowingly order," Levin said.

In a typical cramming incident, Eric Anderson attended a fun fair in Pontiac where he entered a sweepstakes that led to his father being billed by "Hold Billing Service" for a phone calling card he unknowingly ordered when he entered the sweepstakes. When the Andersons tried to cancel the service, the company refused to discuss cancellation and hung up. The Federal Trade Commission recently took action against Hold Billing Service.

There are several agencies that can be contacted to get information and to report cramming scams. Two are the Federal Trade Commission, which protects consumers against deceptive practices, and the Federal Communications Commission, which has jurisdiction over telecommunications companies. The attached "Consumer Alert on Cramming" provides tips on how to avoid being victimized and what to do if you are crammed.

Consumer Alert: Phone Bill Savings - Featured link: What To Do About Phone Cramming: Call the Shots (Philadelphia Inquirer, 6/10/1998), Your local phone bill can contain charges from many businesses besides just your local phone company and your pre-subscribed long distance carriers. There can be charges from pay-per-call services, collect calls, "dial-around" services, and even charges that have nothing to do with phone service. In large part, this is a result of the deregulation of the telecommunications industry, and the right of third parties to have their charges appear on your local phone bill. These charges can appear even if you have 900/976 blocking...

 March 21, 2002 - “Honey, George Bush is on the line” - CHICAGO, From The Economist print edition, Politicians can now phone millions of voters... Unfortunately, AP, A TYPICAL evening in Chicago. First the mayor, Richard Daley, rings up to speak about the Illinois Democratic primary on March 19th. Not long after that, Senator Richard Durbin and former Senator Paul Simon both phone to give their thoughts. Then Gloria Steinem calls to mention how much she likes the Republican candidate for governor...

 March 21, 2002 - Spam: It's completely out of control - By Stefanie Olsen, Special to ZDNet News, Chris Lewis walks a tightrope every day as leader of a spam-eradication team at a major telecommunications company. He is the guardian of roughly 45,000 employees' e-mail in-boxes, protecting against unsolicited commercial messages that are nearly doubling in number every five months--and costing an estimated $1 per piece in lost productivity. But perhaps just as important is Lewis' ability to field the bad mail without discarding the good, such as potential business leads...

 March 18, 2002 - TELETRUTH: A NEW NATIONAL ALLIANCE FOR CUSTOMERS' TELECOM AND BROADBAND RIGHTS IS FORMED. - New York, TeleTruth, a new national, independent, customer alliance focusing telecommunications and broadband service issues, was launched today by a pro-customers alliance of 25 companies and independent industry observers. The organization was created to defend the public's interests, educate and inform customers on how to combat monopoly control, promote competitive fairness and innovation within the industry and accelerate the deployment of advanced networks and services...

 

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