The US Court of Appeals today issued a decision upholding the Federal Communications Commission decision to end the practice of long distance companies filing tariffs. 

            TRAC was a participant in the proceeding at the FCC and on reconsideration.  TRAC initially opposed detariffing. It subsequently asked for and obtained a modification of the FCC decision to require that rates and terms of service by long distance companies be made available to the public.  With the elimination of tariffs, it will now be necessary for long distance carriers to have contractual arrangements with each of their customers.

            The following statement is attributable to Samuel A. Simon, Chair of the Board of TRAC:

            “The elimination of tariffs may well be more of a nightmare than a benefit for the average consumer.  Consumers need to get ready for even more changes as a result of this decision.  Soon they can expect to receive in the mail a ‘contract’ from their long distance carrier setting out the terms of service.  While certain legal implications of tariffs were anti-consumer, there is no guarantee that the new ‘contracts’ to be issued by long distance companies will offer more protection.  Just look at the fine print on your credit card bills, and you know what consumers are in for on their long distance bills.

            TRAC is pleased that the new rules, however, will require that long distance companies post their rates and terms of service on the internet and make them otherwise publicly available.  This will enable TRAC and other consumer groups to continue offering rate comparison information.

           The decision to de-tariff was premised on the long distance market being competitive today.  We believe that should the FCC approve the merger between MCI/Worldcom and Sprint, this would not longer be the case, and the tariff requirement should be reinstated.”