
June 4, 1998
TO HALT "CRAMMING"
"So far, current law is inadequate to protect consumers from cramming which is a relatively new type of consumer fraud. Since the Federal Communications Commission (FCC) began recording cramming complaints in December, they have processed two thousand complaints. Across the nation, local telephone service providers have been receiving thousands of complaints themselves," Dingell said. "The real devil in the matter is that cramming charges on telephone bills are usually undetected by the victims. Therefore, a majority of the problems go unreported," Dingell added.
"It seems like every time we close a loophole," Gordon said, "these scam artists find another niche. It reminds me of an old saying in Tennessee. 'When there is slop in the trough, it's hard to stay ahead of the hogs.' In other words, while technological advances have resulted in enhanced services and better options for consumers, the scam artists seem to stay one step ahead -- looking for any new way to promote their latest scheme."
The Anti-Cramming Protection Act of 1998 entitles consumers to a full credit for charges incurred as a result of cramming, by enabling consumers to have crammed charges dropped from their telephone bills immediately (if they notify their carrier within 90 days of the imposition of any such charges). It authorizes State Attorneys General to sue crammers under Section 5 of the Federal Trade Commission (FTC) Act to protect consumers in their states from crammers. The legislation requires the FTC to write rules to outlaw unfair, deceptive acts and practices in connection with billing for products or services on telephone bills. These rules would ensure that such charges are authorized by the consumer and are easily identifiable on their telephone bill. The legislation would permit consumers to block telephone billing of additional products or services at their own election.
Contact: Dennis Fitzgibbons, (202) 225-3641
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