Telecommunications provider New Access Communications agreed to pay $2 million to settle a 10-state lawsuit accusing the company of slamming, the Minnesota attorney general's office said last week.
Slamming is the switching of a consumer's telephone service without permission.
Consumers also complained that New Access telemarketers pretended to be from a different phone company and falsely promised savings without disclosing that “package prices” did not include long distance and extra features, the Minnesota attorney general's office said.
Other states in the settlement are Colorado, Iowa, Michigan, Montana, Nebraska, North Dakota, Ohio, Texas and Wisconsin. Of the $2 million to be paid, $1 million will be used to reimburse consumers for bills, $750,000 will go to the states and $250,000 will be placed in a trust for restitution to victims who can claim an additional $50 payment.