Attorney General's News Release

April 9, 2002

Texas phone slammer permanently barred from doing business in Missouri after judge finds 15,272 violations

Jefferson City, Mo. — A Jackson County circuit judge today ruled that a Houston re-seller of long-distance services violated Missouri consumer protection laws more than 15,000 times by illegally switching, or "slamming," the service of Missourians without their consent and then doubling their rates and adding fees.

Attorney General Jay Nixon also obtained an order barring the company, Axces Inc., from ever doing business in Missouri again. The prohibition order is the first of its kind against Axces, which has been sued by several other states for its slamming practices.

Nixon sued Axces in March 1998, but Axces chose to take legal steps that led to a protracted court battle. A trial was held on the liability issues of the case in November.

"Axces did everything it could to forestall this day of reckoning," Nixon said. "The judge's finding bears out what we have maintained since we filed our lawsuit four years ago — Axces engaged in the wholesale, rampant and illegal switching of the long-distance service of thousands of Missourians. The price for their actions is that they won't be doing business in Missouri ever again."

Nixon said Axces switched Missourians' long-distance service by enticing them to sign a contest entry form in a purported raffle for a sports car. Entry boxes typically were placed in areas with a lot of pedestrian traffic, such as malls or fairs. At the bottom of the entry form under the signature line was a sentence — in type-face only one-sixteenth of an inch high — giving Axces technical authority to switch the consumer's long-distance service, raise their rates and add various monthly fees.

Jackson County Senior Judge Lee Wells now will conduct a separate discovery phase and trial to determine the amount of damages and civil penalties Axces must pay.

Nixon gave several tips for consumers to avoid or correct unwanted phone service charges:

• Read your phone bill carefully every month. If there are unclear charges, call your local phone company for an explanation. If you are being billed for an unordered service, ask the phone company to remove the charge.
• Avoid entering contests that require your signature on the entry form. If you do enter, read the fine print carefully to make certain you are not authorizing any unwanted phone service.
• If you receive a telemarketing solicitation for phone service, listen carefully to any instructions at the beginning of the call. Be careful not to answer "yes" to anything that might inadvertently authorize an unwanted service.
• To file a complaint, contact the Attorney General's Office at 1-800-392-8222 or with the Federal Communications Commission, Consumer Protection Branch, Mail Stop 1600A2, Washington, DC 20006

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818