FCC Proposes to Fine Neon Phone Service $3.9 Million for Apparent Slamming, Cramming
The FCC proposed 4-1 a $3.96 million fine against Neon Phone Service for apparently violating rules against making unauthorized changes to consumers' preferred long-distance providers (slamming) and inserting unauthorized charges on phone bills (cramming). The commission, saying Neon also "deceptively…
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marketed" its service, received many consumer complaints, said a release and a notice of apparent liability in Wednesday's Daily Digest. In a couple cases, "Neon fabricated third party verification recordings to make it appear that these consumers authorized the carrier change and then provided those fabricated recordings to the Commission as evidence of consumer authorization," said the NAL, noting Neon didn't respond to a letter of inquiry. Chairman Ajit Pai and Mignon Clyburn said they were pleased the FCC "agreed to consider revoking Neon’s Commission authorizations after it has had the opportunity to respond to this [NAL]. If companies egregiously flout our rules, this option should be on the table." Commissioner Jessica Rosenworcel called this "part of a pattern of similar behavior by others associated with Neon," some subject to multiple FCC enforcement actions: "The Commission should go further to stop these bad actors from engaging in this same fraud again. This agency should use every tool we have at our disposal to stop wrongdoers in their tracks and prevent them from repeating these scams." Commissioner Michael O'Rielly partially dissented without issuing a statement. Company representatives didn't comment or couldn't be reached.