COMMENTS OF BLOSSOM A. PERETZ, ESQ.
DIRECTOR, DIVISION OF THE RATEPAYER ADVOCATE

PRESENTED BY MICHELLE GILES
LEGISLATIVE LIAISON

BEFORE THE NEW JERSEY LEGISLATURE
ASSEMBLY TELECOMMUNICATIONS AND UTILITIES COMMITTEE
State House Annex, Committee Room 1

MAY 17, 2001 10 a.m.

Good morning Chairman Zecker and members of the Assembly Telecommunications and Utilities Committee.

My name is Michelle Giles, and I am the legislative liaison with the Division of the Ratepayer Advocate. I am here today on behalf of the Ratepayer Advocate, Blossom A. Peretz, who would like me to convey her sincere regret at not being able to be here personally to address the committee and to thank the Assembly members for moving forward with anti-slamming legislation.

The Division of the Ratepayer Advocate supports bills A-2842 and S-1358. Slamming, defined as the unauthorized switching of a customer=s long distance carrier, is a deceptive and underhanded practice. Far too many unsuspecting consumers throughout New Jersey have fallen victim. The Ratepayer Advocate has, in the past, testified in support of anti-slamming legislation, and we believe this new legislation will further strengthen the state=s laws against this practice.

A main objective of the FCC=s rules is to take the profit out of slamming, specifically by absolving consumers of 30 days of slamming charges; by strengthening the procedures in which carriers must obtain customer verification of preferred carrier change requests; and by requiring that the verification procedures apply to both local and long-distance carriers. The goal of slammers is ultimately to make a profit. By eliminating the profit, we can eliminate the deceitful practice. The new FCC rules require the slammer to pay the carrier 150 percent of the charges it received from the consumer -- and the carrier must in turn reimburse the consumer 50 percent of these charges.

This legislation will require the Board of Public Utilities to enforce the FCC=s anti-slamming rules and regulations. The requirement will work to ensure better overall consumer protection, tougher enforcement, and prompt, effective resolutions to disputes. By having the complaints handled at the state level, rather than the federal level, consumers will be afforded better accessibility to the proper authorities when dealing with slamming issues. The consumers of New Jersey have the right to be safeguarded against slamming, and this legislation will provide consumers with significantly more assistance at a local level.

The Division of the Ratepayer Advocate supports this legislation and the effort to include New Jersey among the states helping the FCC to >slam the slammers.= Thank you.


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