The Oregon Department of Justice (DOJ) and the Public Utility Commission (PUC) have reached an agreement with United Telecom, Inc., that bans the California-based firm from doing business in Oregon.
The company agreed to pack up and leave as part of an agreement to settle allegations of "slamming" and other misconduct. “Slamming” is the practice of changing a consumer's telephone service without getting their informed consent.
"Oregon businesses face enough challenges in today's economic climate without being taken advantage of by service providers," said Oregon Attorney General John Kroger. "The Public Utility Commission was a crucial partner in this action to protect Oregon small businesses."
"This case highlights the value of people bringing issues like this to the PUC. One complaint may seem insignificant, but they help shine the light on unscrupulous operators. Fortunately, we are able to combine our efforts with the Attorney General to protect Oregon consumers. We are pleased with this outcome," said Phil Boyle, Manager of the Oregon Public Utility Commission Consumer Section.
Targeted small businesses
United Telecom is a reseller of long distance plans that offers landline telephone services to many small businesses throughout Oregon.
The state opened an investigation into United Telecom based on complaints forwarded by PUC staff. The complaints filed with the PUC reported frequent misrepresentations on behalf of United Telecom regarding its affiliation with service providers such as Qwest.
Complaints alleged that United Telecom transferred long distance telephone services without prior or proper authorization.
Leave within 90 days
Under the agreement filed in Marion County Circuit Court, United Telecom agreed to cease operation as a provider of telecommunications services in Oregon within 90 days and formally withdraw its Certificate of Authority at the Public Utility Commission's direction.
The company must also refrain from soliciting any new Oregon customers and provide refunds to certain consumers who filed complaints with the Department of Justice or the Commission previously, if any have not yet received appropriate credits. United Telecom also paid costs to the Department of Justice.
“Slamming” is not the problem it was a few years ago, but as the Oregon case illustrates, it's still around. Here are some ways to avoid becoming a “slamming” victim:
- Read your phone bill carefully every month. If there are unclear charges, call your local phone company for an explanation. If you are being billed for an unordered service, ask the phone company to remove the charge.
- Avoid entering contests that require your signature on the entry form. If you do enter, read the fine print carefully to make certain you are not authorizing any unwanted phone service.
- If you receive a telemarketing solicitation for phone service, listen carefully to any instructions at the beginning of the call. Be careful not to answer "yes" to anything that might inadvertently authorize an unwanted service.
If all else fails, complain to your state utility commission. We would appreciate hearing from you as well. Use our complaint form.
