
| COMMISSIONERS | CONTACTS |
| Laura Chappelle, Chairman | Dorothy Wideman |
| David A. Svanda | Mary Jo Kunkle |
| Robert B. Nelson | 517.241.6160 |
LANSING, July 11. The Michigan Public Service Commission today
fined AT&T Communications of Michigan, Inc. $30,000 for violating
provisions of the Michigan Telecommunications Act, and awarded $15,000 of
the penalty to Covenant House, the co-complainant in the case. Today's order
marks the first time that a customer has been awarded a portion of the fine as a
result of having its service "crammed," in violation of the MTA. Cramming
refers to the practice of placing charges for unrequested services on a
customers' utility bills. The Commission concluded that AT&T had violated
two provisions of the MTA which prohibit a telecommunications provider
from: 1) including or adding optional services in a customer's
telecommunications package without the express oral or written authorization
of the customer and, 2) charging the customer for service provided after the
effective date the service was cancelled. Today's order also orders AT&T to
pay the complainants' reasonable attorney fees and costs.
Covenant House Michigan and Great Lakes Telecom, Inc., co-
complainants, filed a complaint against AT&T on December 14, 2000, alleging
among other things, cramming, in violation of provisions of the MTA. While
concurring that cramming violations did occur, the Commission dismissed
other provisions of the complaint involving other billing disputes.
The MPSC is an agency within the Department of Consumer and
Industry Services.
Case No. U-12759, U-12764
July 11, 2001
(MPSC fines AT&T $30,000 for MTA violations)