Ownership Rights of Toll Free

This seems to be a hot topic these days. Under rules established in 1997 by the FCC, toll-free service providers cannot reserve a toll-free number without having an actual toll-free subscriber for whom the number is being reserved. By law, available numbers must be doled out on a first-come, first served basis off the main database maintained by the 800 Service Management System (SMS/800). Hoarding numbers is likewise illegal. A subscriber may not acquire more toll-free numbers than they intend to use. By FCC definition, “hoarding” also includes “brokering” which is the illegal lease or sale of toll-free numbers for a fee.

Heafty Fines Can Be Imposed on Toll Free Hoarders

What happens if regulators discover illegal hoarding or sales of toll free numbers. If the FCC discovers illegal hoarding, they immediately send out disconnect and suspend letters to the owner of the numbers. Additionally, the brokering of toll free numbers can result in hefty fines. Remember, last year, an astounding daily fine of $11,000 was reportedly imposed on a California company accused of improperly using toll free numbers.