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Florida Seeks Nationwide Telephone Billing Probe

By Mark Huffman
ConsumerAffairs.com

May 23, 2006

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Florida Attorney General Charlie Crist, who last week announced an investigation of telephone company billing practices, is now seeking to expand the probe nationword.

In a letter to his fellow Attorneys General, Crist said the placing unauthorized charges on consumers' bill – a practice known as "cramming," is a national problem requiring a national solution.

"Because there is reason to believe that this conduct crosses state lines and involves multiple telephone companies, I am requesting your participation in a multi-state task force that will be formed to jointly investigate this conduct," Crist wrote.

The state initiated the investigation following media reports of "cramming," targeted against Florida consumers.

A number of consumers complained that their phone bills contained $12.95 charges for a service called Email Discount Network, which purports to offer members a discount for Internet shopping done through the company's Web site.

The company operating Email Discount Network is based in Plantation, Florida.

"We have learned that customers of BellSouth, AT&T, SBC Communications, Quest and Verizon also discovered the unauthorized charges on their bills," Crist said.

"Under Florida law, telephone companies are responsible for third-party billers who place charges on their bills."

Congress' Contribution

The Telecommunications Act of 1996 requires local telephone companies to allow other service providers to charge customers on their local phone bills.

The idea was to open up telecommunications to competition, but in practice the provision of the law has been abused by some companies who have engaged in "cramming."

ILD Telecommunications is one of the nation's largest third-party billing companies, which acts as a broker for smaller companies who want to bill consumers through their local phone bills.

ILD has been the subject of repeated consumer complaints as they have passed along many of the unauthorized charges that consumers object to.

A spokesman for Crist tells ConsumerAffairs.com that the investigation, at this point, is not targeting any specific company or group of companies, but will look at the role local telephone providers, third-party billers and other service providers play in the growing problem of "cramming."

"At this point we're just looking at everyone and everything, to see how they all fit together," said spokesman John Sherer. "We're just trying to see the big picture."

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