The Toll Free Black Market: Phone Number Hoarding

The FCC began investigating hoarding of 800 numbers as far back as 1995, but despite the subsequent release of 888, 877, and 866 pre-fixes, the practice continues to grow along with the skyrocketing popularity of toll free service. The FCC has the 855 pre-fix reserved to alleviate the shortage but has not yet announced plans to release those numbers.

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Black Market: Toll Free Phone Number Hoarding

To overcome severe shortages of available 800, 888, 877, and 866 numbers, hoarding of these cherished phone numbers by toll free providers, and also by individual subscribers, has emerged into an unwelcome black market.

Under rules established in 1997 by the Federal Communications Commission, 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 by individual subscribers is likewise illegal. A subscriber may not acquire more toll-free numbers than they intend to use. By FCC definition, “hoarding” also includes “brokering” –the illegal lease or sale of toll-free numbers for a fee.

The FCC began investigating hoarding of 800 numbers as far back as 1995, but despite the subsequent release of 888, 877, and 866 pre-fixes, the practice continues to grow along with the skyrocketing popularity of toll free service. The FCC has the 855 pre-fix reserved to alleviate the shortage but has not yet announced plans to release those numbers.

Concern about the diminishing stock of 800 numbers is creating an even higher demand for toll free service, a marketing tool that the FCC says is “proven” to increase business. Studies show that telephone orders can increase up to 60 percent and word of mouth referrals can rise by 200 percent if a toll free number is advertised.

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.