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Proposed AT&T fine is $780,000 ; FTC cites violations of do-not-call rules

Posted on: Tuesday, 4 November 2003, 06:00 CST

AT&T Corp. may be fined $780,000 by the Federal Communications Commission for allegedly violating the commission's do-not-call rules.

AT&T, the largest U.S. long-distance phone company, made solicitation calls to 29 consumers on 78 occasions after those people had asked that Bedminster-based AT&T not call them again, the FCC said in a statement. That would violate a rule saying telemarketers must remove a telephone number from their solicitation list on the consumer's first request.

This is the first proposed fine against a telemarketer since the FCC adopted do-not-call rules in 1992. The agency has said it would make enforcement of the regulations a priority after 54.2 million people added their numbers to a national do-not-call registry earlier this year. Commercial telemarketers can be fined for calling numbers on the list, which took effect Oct. 1.

"The FCC is sending a clear signal to companies that when a consumer asks to be put on the do-not-call list, they're going to pay a significant price if they don't honor that request," said Chris Murray, an attorney with Consumers Union in Washington.

FCC officials began probing AT&T telemarketing practices after a review of more than 300 complaints against the company, the agency said. The FCC is proposing a $10,000 penalty for each of the 78 alleged violations. The action is related to the FCC's telemarketing rules established in 1992, not the new national registry.

AT&T hasn't yet responded to the proposed fine, FCC spokesman Richard Diamond said. After reviewing the company's answer, the FCC may fine AT&T or reduce or cancel the penalty.

"We have been cooperating with the FCC over the past several months in investigating claims that date well back into 2002," AT&T said in a statement. "We are confident we can persuade the FCC in its fact-finding proceeding that there were not 78 do-not-call violations." AT&T spokesman Bob Nersesian declined to elaborate on the number.

AT&T shares rose 28 cents to $18.87 at 4:01 p.m. in New York Stock Exchange composite trading. The shares have fallen 28 percent this year.

"This puts telemarketers on notice that we will take all measures necessary to protect consumers who chose to be left alone in their homes," FCC Chairman Michael Powell said in a statement

As of today, the do-not-call registry, which is being run by the Federal Trade Commission and jointly enforced with the FCC, had generated more than 51,610 complaints via a toll-free hot line or www.donotcall.gov from people saying telemarketers continued to call them, said Cathy MacFarlane, FTC spokeswoman.

The FCC had received 4,341 do-not-call complaints as of Oct. 29, according to the agency.

The agencies haven't yet proposed fines for violations of the do- not-call registry, the FCC and FTC said.

National Consumers League President Linda Golodner said the FCC's move against AT&T may be a sign of more to come from the agency. "I hope that it will also apply strict enforcement to the do-not-call list," she said.

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