William.Degnan@f39.n382.z1.fidonet.org (William Degnan) (12/14/90)
We received the following news release concerning "slamming":
Pioneer TeleTechnologies, Inc.
For Immediate Release
SERGEANT BLUFF, Iowa -- Pioneer TeleTechnologies, Inc. (PTI), and MCI
Communications Corporation today announced that they have reached an
out-of-court settlement with AT&T in a lawsuit involving telemarketing
practices.
Terms of the settlement agreement were not disclosed.
The three firms also agreed to propose adoption by the FCC of
mandatory industry standards to protect consumers against being
switched to a long distance carrier without authorization.
"With this agreement, the consumber benefits through standardized
telemarking practices, and the industry benefits since both companies
can get on with the business of serving consumers in a competitive
marketplace," Bert C. Roberts, Jr., MCI president and chief operating
officer, said.
PITI, MCI and AT&T said they will urge the Federal Communications
Commission to adopt mandatory telemarketing standards as quickly as
possible to ensure that consumers are switched to a carrier only with
their permission. Those standards would permit long distance carriers
to confirm that a customer has agreed to a switch in anay one of four
different ways. The four ways include:
-a customer-initiated call to an 800 number of the carrier to which
the customer is switching;
-independent third party confirmation;
-signed letter of authorization;
-a call placed by the customer to their local or long distance
telephone company.
MCI and PTI said they plan to implement the safeguards as quickly as
possible. "We view the proposal as extremely positive for consumers,
the industry and everyone involved in these proceedings," said Jon
Winkel, President and CEO of PTI.
On October 10, 1989, MCI sued AT&T for false and deceptive advertising
under the Lanham Act, and on October 26, AT&T counterclaimed with the
same allegations. On January 10, 1990, AT&T sued MCI and PTI for false
and deceptive telemarketing practices.
PTI is a privately held corporation based in Sergeant Bluff, Iowa.
###
(Special disclaimer: We have no connection with any of these firms although
we know people who do.)
Disclaimer: Contents do not constitute "advice" unless we are on the clock.
William Degnan | wdegnan@mcimail.com
Communications Network Solutions | !wdegnan@at&tmail.com
-Independent Consultants | William.Degnan@telemail.com
in Telecommunications | UUCP: ...!natinst!tqc!39!William.Degnan
P.O. Drawer 9530 | ARPA: William.Degnan@f39.n382.z1.FidoNet.Org
Austin, TX 78766-9530 | Voice +1 512 323 9383