FCC Eyes $29.6 Million Fine of OneLink for Apparent Slamming, Cramming, Fabrications

The FCC proposed fining OneLink Communications $29.6 million for apparently committing various “fraudulent, deceptive, and manipulative practices targeting consumers with Hispanic names,” said a commission release Friday night. It said OneLink and three companies it manages -- Cytel, TeleDias Communications and TeleUno -- apparently “slammed” consumers by switching their long-distance service to other carriers without consent, “crammed” unauthorized charges onto consumer bills and fabricated audio recordings to try to justify the actions. “The apparent practices reflect an ongoing, expansive, calculated, and multi-pronged campaign to allegedly ‘win’ customers through deceit and fraud,” said an FCC notice of apparent liability (NAL). “The Companies’ apparent practices included misrepresenting themselves to consumers including by ‘spoofing’ the Companies’ telephone number, tricking consumers into making statements or disclosing information that the Companies recorded and then used to ‘verify’ that the consumer had authorized a change in telephone service provider, charging for services that the consumer had not ordered, and submitting to the Commission false and/or misleading information.” The commission said the companies often used telemarketers to obtain information from consumers. “In many cases, the Companies claimed to be calling the consumers from a U.S. Post Office or elsewhere under the pretext of notifying the consumer about a package delivery. The Companies then provided fabricated audio recordings to the Commission as purported proof that consumers had authorized the Companies to switch their long distance carriers,” said the NAL, saying the agency received more than 200 consumer complaints about the companies. The FCC said the apparent unauthorized charges and deceptive calls were “unjust and unreasonable” practices under the Communications Act. The companies will have a chance to respond to the allegations, but the commission expressly noted it could move to revoke the companies’ authorization to operate. Commissioner Ajit Pai, who supported the NAL, said in a statement that there had been a rise in “hucksters and criminals” profiting in a “market for fraud” from unauthorized service changes and charges. “Today’s case may be the worst yet,” he said. “To put it mildly, OneLink’s conduct was appalling. ... For conduct this egregious, the book should be thrown.” Commissioner Mike O’Rielly partially approved and partially dissented but didn't issue a statement. OneLink had no comment.