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America June 4, 2024 3 mins read

FCC Orders Clear Rate to Wipe Charges for Alleged Slamming for Third Time This Year

America ı By Rochdi Rais

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Michigan-based Clear Rate Communications is yet again in the Federal Communications Commission's crosshairs over allegations of "slamming," with the commission ordering the company to wipe new customers' charges for the third time this year.

In a series of orders released Friday, the commission found credible four customer complaints claiming Clear Rate misrepresented itself on sales calls to get Verizon business customers to change their service, mandating that Clear Rate remove all charges incurred by the customers during the first 30 days after the change.

In February, the commission found that Clear Rate had used a similar practice on five business customers and ordered the same remedy. In April, the FCC cited the company again for using the same practice — known as "slamming" — saying it had continued to run afoul of the agency's 2018 anti-slamming order.

The four customer complaints featured in Friday's orders told the same story. Three businesses subscribing to Verizon were contacted by salespeople who claimed to be from Verizon, telling the customers they would have to switch service or otherwise signing them up for Clear Rate. One had been a customer of Frontier Communications, who said the salesperson claimed to be from Frontier.

"My account was switched and it has been a nightmare ever since," the previous Frontier customer told the commission, according to the agency order. "Clear Rate is incompetent to put it mildly but the disturbing part is their sales rep posed as someone from Frontier. ... I would have never switched but was told I didn't have a choice."

The Frontier customer received the call to switch in April, after the two previous commission citations.

"I never knew I wasn't talking to a Verizon employee who stated she was calling to make sure I was paying a good rate," another customer told the agency, per its order.

According to the commission, Clear Rate responded to the complaints by providing audio recordings from what it called "quality assurance calls" to the agency, but didn't share recordings of the sales calls or other evidence showing that its sales people hadn't misrepresented themselves.

"Based on the evidence in the record, we find complainant's allegation of a sales call misrepresentation to be credible," the agency wrote in the four orders. "We further find that Clear Rate has failed to provide persuasive evidence to rebut complainant's misrepresentation claim and therefore that complainant's authorization to change carriers is invalid."

According to the orders, Clear Rate will have to pay the original service provider for any service after the initial 30 days.

Clear Rate CEO Stephen Oyer, as well as several other corporate officers, declined to respond Monday to repeated inquiries on the FCC orders. Representatives for the FCC did not immediately respond to request for comment on whether it will ramp up enforcement efforts against the company.

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Rochdi Rais

Rochdi Rais is the Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.

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