a bit more on the "800 number ripoff..."

[David Farber <farber () central cis upenn edu>]

Date: Mon, 17 Oct 1994 11:49:00 -0700 (PDT)
From: "Brock N. Meeks" <brock () well sf ca us>
Subject: Re: 800 number ripoff...
To: "Peter Capek (TL-863-6721)" <capek () watson ibm com>






On Mon, 17 Oct 1994, Peter Capek (TL-863-6721) wrote:


> I'd really like to know how this came about.  Had there been any regulation
> (other than convention, initiated by AT&T when they created 800 numbers) on
> whether charging was permissible?


The regulations on 800 numbers were that they were to be free to the
calling party.  About a year ago this changed, and the FCC allowed
companies to start charging callers using 800 numbers.


As you might imagine, problems quickly arose.  For example, Porn lines
that were blocked (900 numbers) used an 800 number "front end" that would
automatically route to a 900 number, thus bypassing theblocking
structures.


The FCC quickly ruled that this was not allowed. Thepractice stopped.


Then comaies, mostly the sex chat lines, started issueing "instant
calling cards" based on the caller's call set up information (thanks to
intelligent networks which send such info automatically).  This calling
card arragnement allowed that there was a "business relationship"
betweenthe caller and the porn company, which then allowed the charges.


The FCC admitted this was a  "loop hole" they hadn't covered.  They are
now trying to correct it after some 2,000 complaints were registered by
citizens such as yourself about 800 number abuse.


> I see an additional bad consequence of
> this practice:  Companies which run PBXs and disallow calls to 900 numbers
> out of (valid) concern for outrageous charges will now feel compelled to do
> the same thing for 800 numbers.  And that will result in an inability to call
> (for example) software help numbers, which are rarely enough these days an
> 800 number in the first place.


Your concern is well placed.  I suggest you call the FCC and ask for any
of the commissioners or call Dr. Robert Pepper, who is the head of the
Policy Bureau there. Better yet, write, ou'll get a much better response.


> Was this changed initiated/requested by MCI for their DIAL-INFO service?  Or
> were they merely the first to take advantage of an FCC-initiated change in
> the rules?


No, MCI was not the first, nor where they alone in pushing for the
structure.  Severalcompanies have been using billed 800 number service
for more than a year.  MCI, however, is aggressive.  They saw a way to
eat into AT&T's huge directory assistance market just as they did  (quite
successfully) with the 1-800-COLLECT service.


Hope that helps.


--Brock