Wow, Verizon Really Slapped

Ruuuh-Roooh is right! The FCC has handed Verizon the equivalent of a cease and desist order on customer retention efforts. It was not a suggestion, or even a tradeoff. It is stop or we the FCC will find some appropriate action –

No more letters. No more presents. No more anything.

The federal government, speaking on behalf of former Verizon phone service customers, yesterday sent the communications company a stern message: Stop trying to woo back those consumers who have opted for a new provider. They’ve moved on.

Verizon had been using its proprietary data to contact former customers and try to persuade them to give the company another try. But a majority of members of the Federal Communications Commission yesterday said such practices are illegal and infringe a consumer’s privacy.

“Today we carry out Congress’s unambiguous mandate to protect consumer privacy,” said Robert M. McDowell, a Republican commissioner. Two Democratic and two Republican commissioners voted against Chairman Kevin J. Martin, a Republican. The chairman had pushed for the agency to rule that Verizon’s use of phone numbers to contact its departing customers was legal, despite complaints from cable service operators.

Verizon yesterday evening requested a stay on the FCC decision.

It is surprising in its action. The FCC usually does not have the commissioners issuing action statements like this. That is usually handled as a parliamentary action by the enforcement bureau. Not only that but issues of customer interaction is not generally handled by the FCC either. So for all these forces to converge in this means that there are many complaints on file and some serious pressure on the Commission from the Hill.

I take this two ways. First, glad to see the Commission act for once rather than worry about political aftershocks. They appear to be taking a consumer oriented action. Second, I have concerns here. The primary one being the primacy of free choice in contract law. If a parting customer wishes to hear the retention pitch, its their right.

The crux of course is Verizon overplayed its hand for sure. If having tendered an offer the parting customer say ‘No’. That should be the end of it. Not the continued barrage of emails and letters. The cable guys should not be to overjoyed by this either. For once having spoken the Commission will have to promulgate rules to support the action. Most likely they will apply to them as well as the Telcos. To do otherwise will run foul of 14th Amendment provisions. Oh, an you can fully expect Verizon to run this into the 1st DC Appeals.

More here.