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FOR IMMEDIATE RELEASE: NEWS MEDIA CONTACT:
October 2, 2012 Neil Grace (202) 418-0506
Email: neil.grace@fcc.gov
FCC PROPOSES $5 MILLION FORFEITURE TO COMBAT DECEPTIVE MARKETING OF
PREPAID CALLING CARDS TARGETING IMMIGRANT COMMUNITIES
Prepaid Calling Card Forfeitures Total $30 Million in Past Year against
Six Carriers;
FCC Warns Consumers to Beware of Deceptive Prepaid Calling Card Schemes
Washington, D.C. -The Federal Communications Commission's Enforcement
Bureau has proposed a $5 million forfeiture against NobelTel, LLC for
deceptively marketing prepaid calling cards to consumers. With this latest
enforcement action, the FCC has now proposed forfeitures totaling $30
million against six carriers within the past year to combat the deceptive
marketing of prepaid calling cards. Such cards are commonly sold in
convenience stores and gas stations across the country.
In each of the six enforcement actions to date, the FCC's Enforcement
Bureau found that the carrier targeted immigrant populations, and claimed
that buyers could make hundreds or thousands of minutes of telephone calls
to their native countries for just several dollars. However, the FCC's
Enforcement Bureau discovered that buyers could make calls for only a
fraction of those minutes, due to the carriers' assessment of various fees
that are not clearly and conspicuously disclosed.
FCC Chairman Julius Genachowski said, "As this action makes clear, we
remain vigilant in our effort to crack down on prepaid calling card
scammers who engage in deceptive marketing. Millions of Americans depend
on prepaid calling cards to connect with family and friends around the
world, and the FCC will not tolerate predatory schemes that include unfair
or unclear fees. The Commission will continue to monitor marketing
activities around prepaid calling cards - and will not hesitate to take
decisive action when warranted."
To illustrate the kind of practices at issue, the Commission observed in
the case against NobelTel, LLC that a $2 card marketed as offering 400
minutes of calls to Mexico might be exhausted after just one 10-minute
call. This is due to different fees, such as "daily" and "hang-up" fees,
that might be assessed after the call was completed. The card advertising
contained disclosures, but only in small type and without clarity about
when the fees would and would not apply. According to the FCC, the only
possible way consumers might be able to make calls of 400 minutes was if
they made a single call of that length - almost seven hours.
To continue to heighten public awareness of these practices, and to warn
carriers about the consequences of engaging in them, the FCC is also
releasing an Enforcement Advisory about deceptive marketing of prepaid
calling cards, in both English and Spanish.
For further information, contact Richard A. Hindman at (202) 418-7320.
News and other information about the FCC is available at www.fcc.gov.
-FCC-
NEWS
Federal Communications Commission
445 12th Street, S.W.
Washington, D. C. 20554
This is an unofficial announcement of Commission action. Release of the
full text of a Commission order constitutes official action.
See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).
News Media Information 202 / 418-0500
Internet: http://www.fcc.gov
TTY: 1-888-835-5322