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             California Public Utilities Commission
505 Van Ness Avenue, Room 5301            San Francisco, CA 94102
CONTACT: Dianne Dienstein                June 10, 1996  CPUC - 50
         415-703-2423                               (A.95-09-018)

          CPUC SETTLES FURST GROUP, INC., SLAMMING CASE

     The California Public Utilities Commission (CPUC) has
approved a settlement between its Safety and Enforcement Division
and the Furst Group, Inc.  The settlement resolves the first of
several ongoing investigations the Commission is conducting of
long distance phone companies.
     Furst is one of hundreds of providers of long distance
telephone service in California.  Numerous consumer complaints to
the CPUC over the last several years alleged Furst had switched
their long distance telephone service without their authorization
- a practice known as "slamming".  Most of the complaints came
from owners of small businesses located throughout the State.
     CPUC investigation of Furst's sales and marketing practices
in California found 160 instances in which consumers' long
distance telephone service was switched to Furst without their
authorization or through deceptive telemarketing. The settlement
was reached following the investigation.
     Under the settlement, Furst will give $50,000 to the CPUC,
over the next two years, to be used for consumer education about
how to prevent unauthorized switching of their long distance
telephone service.  In addition, Furst will refund or credit the
initial two months' worth of fees, service charges and long
distance revenues charged or collected by Furst, or by agents or
collection services working on behalf of Furst, to customers
specified in the settlement.
     In addition, Furst will tape all confirmation calls it makes
to customers who confirm they do want to switch to Furst service.
Furst is allowed to continue to operate in California and has
assured the CPUC that it has severed its relationship with
                             -more-
several hundred independent marketing agents and adopted a
quality control policy to avoid future similar problems.
     California consumers who have not previously contacted the
CPUC and who believe they were switched without their
authorization to Furst's long distance service may call CPUC
Investigator Richard Maniscalco at 415-703-1815.
     Consumers who believe they have been switched without their
authorization, by a long distance telephone company other than
Furst, are urged to call the CPUC's Consumer Affairs Branch at
1-800-649-7570.
     Consumers can prevent unauthorized switching of their long
distance phone service by asking their local phone company for a
PIC freeze.
     Consumers can call toll free 1-700-555-4141 to verify their
long distance company (call from your home phone to check the
phone company you use for that phone; call from your business
phone to check the phone company you use for your business
phone).

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