FEDERAL COMMUNICATIONS COMMISSION
News media information 202/418-0500
FOR IMMEDIATE RELEASE|
December 26, 2002
NEWS MEDIA CONTACT:|
John Winston (202) 418-7450
Washington, D.C. - Today the Federal Communications Commission (Commission) released an order adopting a Consent Decree between the Commission and two affiliated long distance companies, NOS Communications, Inc. (NOS) and Affinity Network Incorporated (ANI). Today's action terminates a Commission investigation into the companies' allegedly unfair and deceptive marketing practices. Under the terms of the Consent Decree, the companies will make a voluntary contribution to the United States Treasury in the amount of $1,000,000.
In addition to the monetary payment, the companies have agreed to revise their marketing and advertising practices to make more clear and conspicuous disclosures regarding their rates, rate structure, promotional plan offerings, and other material facts, and to market in a manner which is reasonably understood by a customer. The companies have also agreed to make only true and accurate representations in their marketing and promotions and to make no material omissions regarding their rates, rate structure, promotional plan offerings, or other material facts.
The Consent Decree follows the Commission's receipt of almost 900 complaints against the two companies, alleging, among other things, misleading advertising and ``bait and switch'' marketing practices. The Commission issued a Notice of Apparent Liability (NAL) against NOS and ANI in April 2001 charging that the companies had apparently willfully or repeatedly violated the Communications Act's prohibition against the use of unjust or unreasonable practices in connection with interstate telecommunications service.
NOS also conducts business as Cierracom Systems, I-Vantage Network, International Plus, 011 Communications, and INETBA (also known as Internet Business Association). ANI also conducts business as HorizonOne Communications and Quantum Link Communications.
Action by the Commission, December 20, 2002, by Order (FCC 02-334). Chairman Powell; Commissioners Abernathy, Copps, Martin and Adelstein.
File No. EB-00-TC-005
Enforcement Bureau Contacts: John Winston at (202) 418-7450 or Donna Cyrus at (202) 418-7325.