Thursday, July 12, 2012
FTC puts brakes on another calling card outfit
In what has seemingly become a common occurrence, the Federal Trade Commission filed a lawsuit to halt the apparently deceptive advertising practices of another calling card provider. The FTC alleged that New York-based DR Phone Communications Inc. misrepresented the fees and the number of minutes on its calling cards. The FTC said the company agreed to temporarily stop its advertising claims, pending a trial in which the agency will seek to permanently halt the company's practices and return its "ill-gotten gains."
In an investigation into DR Phone Communications, doing business as drphonecom.com, the FTC found that the minutes displayed primarily on posters at the POS were not accurate when compared to the actual calling card minutes provided. Additionally, the FTC said the posters claimed the programs had no hidden fees. However, the "small print at the bottom of the posters made vague reference to fees without adequately disclosing what those fees would be," according to the FTC.
In the wake of the FTC's announcement, the American PrePaid Phonecall Association issued a statement that said it was in the process of "finalizing a detailed standard for those who provide prepaid calling cards and other services for those who need an economical way to call overseas."
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