11/25/2015
The FCC has been issuing more fines than ever as it cracks down on poor company behavior, but found itself under fire this week for not bothering to collect any of them. The FCC has issued hundreds of millions of fines in recent years, with many of them levied on AT&T (for defrauding the lifeline program, defrauding IP Relay services, and its misleading throttling practices). The disconnect between attention-grabbing headlines and the lack of collections appears to have drawn the attention of Congress this week.
The FCC didn't comment on the record, but the partisan nature of the FCC's political appointees mean investigations and collections tend to take a long time. An anonymous FCC insider told Politico the announcement of the fines sometimes still facilitate change in company behavior:
quote:
But a spokesperson said the practice of issuing proposed fines technically called notices of apparent liability (NALs) is a major tool to protect consumers, even if companies don t ultimately pay a full penalty. The FCC, which says it normally conducts extensive inquiries before proposing a fine, has seen instances of companies adjusting practices to comply with agency rules after an NAL is filed, said the spokesperson, who declined to be identified, saying the FCC has a policy about not speaking on the record about its enforcement bureau.
Consumers and citizens will have to remember that excuse the next time Uncle Sam comes looking for money owed.read comment(s)
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