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Deregulation in any industry creates new opportunities for businesses, greater competition, less red tape, and lower rates for wise consumers. After any deregulation occurs, the Bureau experiences an increase in complaint activity related to the deregulated industry. The recent expansion of deregulation among the telecommunications industry has created endless new possibilities for business communications. In this new environment it is essential for the buyer to beware. Protect your company from and educate your employees to watch out for the following deceptive practices:

Phone Slamming

Changing your long distance carrier without your permission is standard operating procedure for some unscrupulous long distance companies. Many use gimmicks or sweepstakes while others just go through the phone book and switch unsuspecting customers.
This practice, known as "phone slamming," primarily targets residences but has caught some businesses by surprise. The best way to prevent this from happening to your company is to call your local phone company and tell them you want to prohibit any changes in your long distance service without your written authorization.

Deceptive Sales Practices

Long distance carrier salespeople may offer attractive packages of free long distance and lower rates for companies. The Bureau urges managers to read the fine print, check references, and check with the BBB before signing up. A disconnected business phone due to a billing dispute can severely affect your sales and operations. A clause in the service agreement of one Houston telecommunications company states:

"Customer may cancel this Agreement without penalty should Customer convert to another Service Option with a Term which equals or exceeds the Initial Term. Otherwise, Customer agrees to be subject to an Early Termination Fee of $150 per month for each month of the term remaining plus an amount equivalent to the promotion credit exercised (if any) by the Customer." According to BBB complaint files, some business customers who have subscribed to these packages have not received the type of service or rates they were presented.

MLMs & Long Distance

Be skeptical of multi-level marketing opportunities that promise to make you rich by changing your long distance carrier and persuading your friends to change their service as well.

"Service Technicians"

Beware of bogus service technicians claiming to be from your telephone company. These con artists are telephoning companies and asking for assistance in testing the phone line. The unsuspecting employee is asked to test the line by pressing certain numbers on the telephone keypad and then hanging up. Doing so allows the "technician" access to one of your outside lines. The thief then uses your phone line to make international or long distance phone calls.

FCC Imposters

Be suspicious of scam artists posing as Federal Communications Commission (FCC) agents. They ask people to assist in an investigation of long distance fraud. The "FCC agents" are providing bogus badge numbers and the names of supposed supervisors to add credibility to their stories. They are also asking people to disclose their calling card numbers and authorization codes for long distance calls.

"Shoulder Surfers"

Beware of individuals who are lurking around pay phones at airports and other busy areas hoping to steal your calling card number. They may eavesdrop on your conversation with a telephone operator or watch you dial your calling card number.

Internet Access Providers

When selecting an access provider, avoid paying for a long term subscription in advance. At least one local upstart closed down without refunding long term subscriptions.

The Better Business Bureau does not endorse, recommend, or disapprove any product, service or organization.