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MCI WorldCom to pay $8.5 million

Date: March 7, 2002

Abstract: MCI WorldCom agrees to settle a major consumer protection lawsuit.

March 7, 2002 - MCI WorldCom agreed to settle a major consumer protection lawsuit filed by the California Attorney General and the CPUC. MCI WorldCom agreed to pay $8.5 million in fines and reimbursements for deceptive marketing practices, slamming and cramming. The lawsuit was filed in July 2000 after receiving thousands of complaints from consumers who had their long-distance service changed without their permission; who were billed for additional add on services that they had not authorized; and for continuing to bill for services after the customer canceled their services with the company. Under the terms of the settlement, MCI WorldCom agreed to track and promptly resolve complaints. The company is also barred from attempting to collect on bills that are still in dispute. In addition, MCI WorldCom must provide its customer service representatives with the training and authority they need to answer customers' questions and resolve complaints.

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