Slams, Crams, Jams, and other Phone Scams

Abstract

The 1984 divestiture of AT&T created a proliferation of telecommunication services and wide-spread opportunities for corporate and consumer fraud. The evolution of the telecommunications industry has resulted in aggressive marketing practices that have affected untold numbers of consumers and has fostered fraudulent practices that pit major long-distance phone companies against each other and against Baby Bells. This article examines slamming, cramming, jamming, holding, and gouging violations. Data from state and federal agencies are analyzed to show the scope of fraudulent practices and the methods of perpetration. The research traces enforcement actions by state public service commissions and the Federal Communications Commission and offers an analysis of the problems associated with regulatory sanctioning efforts that attempt to curtail unethical and illegal practices.