FCC Considers Beefing Up New Anti-Cramming Rule

Law360, New York (May 23, 2012, 7:22 PM EDT) -- The Federal Communications Commission on Wednesday proposed strengthening its recently approved rule to shield consumers from unauthorized third-party charges on landline phones by adding an opt-in mechanism and expanding this rule to cover cellphone and Internet service providers.

The FCC on April 27 adopted its rule to rein in this practice, known in the industry as “cramming.” The measure requires telephone companies to inform customers of their option to block third-party charges on their bills and bolstered the agency's mandate that third-party charges appear separate from the telephone company's charges on bills.

Along with its adoption of this rule, the FCC...

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