At its July 24, 2025 meeting, the Federal Communications Commission (FCC) is expected to adopt a Notice of Proposed Rulemaking (NPRM) seeking comment on whether to repeal its so-called “slamming” and Truth-in-Billing (billing) rules or replace them with a more flexible framework that better reflects today's telecom marketplace and reduces compliance obligations. These legacy rules establish how carriers must verify customer-initiated provider switches, prevent unauthorized charges, and ensure bills are clear and understandable. If adopted as proposed, the NPRM would mark the first overhaul of slamming and billing rules in decades.
The comment period offers businesses and other stakeholders an opportunity to shape the FCC’s new regulatory approach. The NPRM seeks comment on issues including whether slamming and unauthorized billing remain consumer protection concerns, whether the current rules are necessary, and whether the rules can be streamlined. This NPRM also reflects FCC Chairman Carr’s “Build America Agenda,” which aims to eliminate unnecessary regulations, modernize outdated rules, and streamline obligations to ease compliance.
While the FCC’s proposals could ease compliance by eliminating or streamlining requirements, interested parties may wish to participate in the FCC’s proceeding to tailor any remaining rules and clarify any ambiguities that could lead to confusion or raise compliance risk.
Comments will be due 30 days after publication in the Federal Register; reply comments are due 30 days later.
Background
The FCC’s slamming rules were first adopted in 1985, after the AT&T divestiture and at a time when local and long-distance telephone services were offered separately. The FCC was concerned about companies executing a change in consumers’ wireline telephone services without their permission and third parties placing unauthorized charges on consumer telephone bills. To address these concerns, the FCC adopted rules covering the following practices:
- Slamming. Slamming is the illegal practice of submitting or executing a change in a consumer’s wireline telephone service provider for local, local toll, or long-distance service without their permission. The FCC requires wireline telephone service providers to obtain clear consent from the subscriber and verify it using approved methods, including written or electronic authorization, recorded phone verification, or independent third-party verification.
- Truth-in-Billing. In 1999, the FCC added new rules on truth-in-billing, requiring telecommunications carriers to ensure that bills are clearly organized and easy to understand (commercial mobile radio service (CMRS) providers are exempt from certain provisions). The billing rules were initially based on general principles, but numerous specific, additional requirements were adopted over the years.
- Cramming. Cramming involves third parties placing unauthorized charges on consumer telephone bills. The FCC’s rules prohibit wireline carriers from placing charges on a telephone bill without the subscriber’s authorization and require wireline carriers to ensure that bills display contact information to dispute charges and notify customers of their ability to block third-party charges. At the time the rules were adopted, wireline carriers permitted third-party billing but changes in billing practices and the market for third-party services have rendered this practice largely obsolete.
Key Proposals
The draft NPRM notes that today’s telecom market no longer reflects many of the conditions that led to the establishment of these rules, particularly as consumers generally do not purchase local and long-distance service separately, and as all-distance offerings like Voice over Internet Protocol and CMRS have become more prevalent. Accordingly, the FCC now seeks comment on whether slamming, billing, and cramming remain a concern or if the rules should be repealed. If the rules remain necessary, the FCC proposes and seeks comments on a streamlined framework to modernize the requirements and ease compliance obligations.
A. Unified Approach to Slamming and Billing Rules
The FCC proposes to adopt a unified approach to its slamming and billing rules. The FCC seeks comment on whether its slamming and billing rules remain necessary. If so, the FCC seeks comment on proposals to modernize and streamline the rules to protect consumers, promote innovation, and reduce costs to carriers. The FCC proposes to consolidate its slamming and billing rules into a single rule section, and asks whether this would simplify compliance for carriers and provide greater clarity to consumers.
B. Slamming Proposals
The FCC proposes to modernize and simplify the slamming rules. Specifically, the FCC proposes to replace the prescriptive rules for verifying consumer switches with a simple requirement that would ensure consumers authorize switches, but afford providers flexibility in how they demonstrate that authorization. It also proposes to eliminate the rules related to Third Party Verification, Letters of Agency, electronic authorization, and state-enacted verification procedures applicable to intrastate service.
The FCC further proposes to eliminate its requirement that providers ensure consumers can stop, or “freeze,” any attempt to switch their preferred interexchange carrier. It also proposes a single rule to prohibit carriers from submitting or executing a provider change without proper authorization and establishes a clear and convincing evidentiary standard providers must meet. The FCC seeks comment on this approach.
C. Billing Proposals
The FCC proposes to modernize and simplify the billing rules for covered telecommunications carriers (CMRS and mobile providers are exempt from the current rules in some instances). The NPRM proposes eliminating the requirements that bills include a separate section for third-party charges, that specific contact information be included on the bill, and that providers offering third-party charge blocking notify subscribers of this option. The FCC proposes to revise the rules prescribing ways consumers can contact carriers (e.g., a toll-free phone number). The FCC also proposes to streamline the billing rules to specify that bills must be clearly organized, contain clear and conspicuous disclosures, and clearly and conspicuously identify changes in service provider. The FCC proposes to retain its definition of “clear and conspicuous” and its prohibition against unauthorized charges. The FCC seeks comment on these proposals.
Cost-Benefit Analysis
The FCC tentatively concludes that the proposal’s benefits outweigh its costs. The proposed changes would reduce regulatory burdens and offer carriers flexibility to innovate their processes, while preserving consumer protections. The FCC anticipates the costs to carriers would be “negligible” because practices that are compliant with the current rules would satisfy the revised requirements.
Advancing the FCC’s “Build America Agenda”
The NPRM aligns with FCC Chairman Carr’s “Build America Agenda,” which prioritizes eliminating unnecessary rules, modernizing outdated regulations, and streamlining obligations to ease compliance. The slamming and billing rules under review were adopted decades ago, when the telecom market operated under a now-obsolete framework of separate local and long-distance billing. Those conditions no longer reflect how services are delivered or billed today. The NPRM seeks to eliminate unnecessary rules and/or adopt a more flexible framework to better reflect the current marketplace and ease compliance.
Recommended Next Steps
If adopted, the NPRM signals a potential shift from prescriptive mandates to a more flexible regulatory framework. While this approach could reduce compliance requirements, it may also introduce new challenges. For example, the requirement to obtain “reasonable verification” of provider switches could introduce ambiguity, leading to greater uncertainty, compliance challenges, and consumer disputes.
Entities offering telecommunications services (or considering market entry) should audit existing processes that rely on current rules and consider submitting comments to the FCC with the aim of ensuring that any final rules account for real-world challenges.
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