FCC Says that Verizon's Customer-Keeping Practices Were Wrong

By Alice Turner
13:31, June 20th 2008
41 votes
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FCC Says that Verizon's Customer-Keeping Practices Were Wrong

Apparently, FCC will rule in favor of cable companies against Verizon Communications Inc., claiming that the latter's practices of trying to persuade customers from switching from its phone service to that offered by cable companies are violating privacy laws.

The actual vote is due today, Friday, but leaks to the press on Thursday, quoted by several press agencies, claim that the ruling would uphold a complaint brought by Comcast Corp., Time Warner Cable Inc. and privately owned Bright House Networks. This comes as a surprise because the FCC staff had earlier recommended that the regulator should toss the complaint against Verizon.

Verizon is said to have started the practice of calling up customers who want to cancel their telephone service and offering them different incentives to stay. At issue is the alleged improper use of proprietary information by Verizon in attempting to retain its customers.

The decision, if the leaks turn out to be true today, would be against the opinion of the FCC Chairman Kevin Martin, who earlier recommended that the Commission tosses the complaint. Martin said he thinks the retention marketing practices are good for customers.

However, it appears that the practice is contrary to a 1998 FCC ruling that barred long-distance carriers from using customers' switching information when trying to get them to retain a particular service. Verizon will probably appeal the decision.

Reuters' source claims that supporting the complaint are the FCC's two Democratic commissioners, as well as Republican commissioner Robert McDowell.



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