FCC Can Ban Customer Retention Practices
By Amanda Avila • March 11, 2009 at 3:37 pm
Author: Alex Harris
The DC Circuit upheld a decision of the Federal Communications Commission (“FCC”) prohibiting Verizon from continuing some of the company’s practices in trying to retain customers switching from its phone service to a competitor’s VOIP service. When a customer decided to leave Verizon for a competitor, Verizon would get a notice because it had to transfer the customer’s phone number to the new service. Verizon would then offer the customer incentives to stay, such as discounts and gift cards. The FCC banned the practice and the court upheld the FCC’s decision, reasoning that the FCC’s action survived the weak standard of Chevron deference because the FCC had rationally interpreted the relevant statute. Read more » about FCC Can Ban Customer Retention Practices
