AT&T was fined $80,000 by the FCC for changing the long-distance carrier of two customers without authorization, a practice known as slamming. AT&T challenged the ruling and argued that the FCC exceeded its authority by requiring carriers to guarantee that the customer authorized the service change order. The Communications Act of 1996 prohibits slamming and requires carriers to follow FCC verification procedures. AT&T paid the fine but filed a petition for reconsideration, which was denied. AT&T then filed a petition for review in court, arguing that the customer consent requirement exceeds the agency's power.
The most relevant facts are that the FCC found AT&T liable for slamming and the court had to determine if the regulation exceeded the FCC's authority under the Communications Act. The court also had to decide if the court of appeals had jurisdiction to hear the case since AT&T had already paid the penalty.
AT&T Corp. v. Federal Communications Commission (2003)
United States Court of Appeals for the District of Columbia Circuit
355 U.S. App. D.C. 322, 323 F.3d 1081
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