FOR IMMEDIATE RELEASE March 1, 2000

Washington, DC - Today, the Federal Communications Commission (FCC) and the Federal Trade Commission (FTC) issued a joint Policy Statement to protect consumers from unfair and deceptive advertising and marketing of long distance services, including dial-around services -- often called ``10-10'' numbers. The Policy Statement offers guidance to carriers to ensure their advertising is truthful, complete and non-misleading. Additionally, it describes the kind of factors the FCC will consider in determining whether to bring enforcement action against carriers for deceptive advertising practices.

In recent years there has been an explosion in competition and innovation in the telecommunications industry. Consumers have reaped substantial benefits in the form of greater choice and lower prices. But the proliferation of advertisements for dial-around numbers, long-distance calling plans, and other new telecommunications services, as well as an increase in the number of complaints regarding how these services are promoted, have raised questions about how the principles of truthful advertising apply in this dynamic marketplace.

The Policy Statement issued today follows a joint forum held by the two federal agencies in November 1999, which provided government, industry, and consumer groups an opportunity to discuss the advertising and marketing of long distance services (see attached Fact Sheet).

``This policy statement is a critical step in protecting the core rights of consumers in the competitive market which we have worked so hard to create. Together with truth in billing and freedom from slamming and cramming, it ensures that consumers will have the knowledge they need to select the carrier of their choice and be fairly charged for the services they use,'' said William Kennard, chairman of the FCC.

"This industry provides American consumers with telecommunications services that are the finest in the world," FTC Chairman Robert Pitofsky said. ``This policy statement will help encourage industry to develop advertising that matches this high standard."

From the joint forum, the two federal agencies developed the FCC-FTC Policy Statement on Truth-in-Advertising, which offers the following guidance for truthful advertising of long distance services (see attached Examples of Misrepresentation):

The FCC has previously found that unfair and deceptive marketing practices by telephone companies may constitute unjust and unreasonable practices under the Communications Act. The joint Policy Statement issued today should provide helpful guidance to carriers who wish to adhere to lawful advertising practices.

In issuing this joint Policy Statement, the FTC and the FCC encourage industry to adhere to the standards offered in the joint Policy Statement. These standards provide guidance for carriers who market long-distance service. Staff of both FTC and FCC remain open to discussing long-distance advertising concerns and any questions that others may have on the Policy Statement itself or more generally. Additionally, the joint Policy Statement does not preempt existing state law.

MEDIA CONTACTS:
Federal Communications Commission, Mike Balmoris at 202-418-0253 (mbalmori@fcc.gov) or John Winston at 202-418-7450 (jwinston@fcc.gov)
Federal Trade Commission, Mitchell J. Katz at 202-326-2161 (mkatz@ftc.gov)

STAFF CONTACTS:
Federal Communications Commission, Lynn Vermillera at 202-418-7120 or Peter Friedman at 202-418-7586
Federal Trade Commission, Allen Hile, 202-326-3122