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April 2008 - The Federal Trade Commission has asked a U.S. district court to halt the alleged illegal practices of a prepaid calling card distributor. The FTC alleges that CTA, Inc. misrepresents the number of minutes consumers purchase, fails to disclose that consumers’ cards are charged whether a call goes through or not and charges hidden fees.
Tests conducted by the FTC using 46 calling cards it purchased, which are distributed by the company, resulted in none of the cards delivering the minutes advertised by posters at retail outlets. CTA sells calling cards in denominations of $2 to $20 under various brand names at small retail outlets like gas stations, grocery stores and newsstands.
In addition to not delivering the advertised minutes, CTA is also accused of inadequately disclosing the charges associated with the cards as well as not informing consumers that they will be charged fees whether or not a call goes through.
The FTC has asked the court to order CTA to halt its allegedly deceptive practices pending to trial and have the company monitored. The commission has also asked the court to require the company to give up the gains it received from its alleged illegal practices.
March 2008 - Effective April 1, the monthly prices of the following Verizon traditional local landline telephone packages have increased:
Verizon Local Package from $29.99 to $31.99
Verizon Local Package Extra from $32.99 to $34.99
Verizon Freedom Package from $66.99 to $68.99
Verizon Freedom Package Extra from $71.99 to $73.99
Verizon Regional Package from $46.99 to $48.99
Verizon Regional Package Extra from $51.99 to $53.99
The price of Verizon’s wireless service is not affected.
Verizon’s local telephone customers who need more information about their local service can call the company at the number listed on their bill. Consumers can compare their local telephone choices by clicking here.
March 2008 - The Federal Communication Commission banned telecommunications carriers from entering into exclusive contracts with landlords at residential apartment buildings. Under previous deals, an entire apartment complex was served by a sole local telephone company and tenants were not allowed to choose an alternative provider. The ruling gives tenants the right to choose whichever company best fits their telecommunications needs and brings competition that tenants may not have had in the past.
For more information on the FCC’s decision click here.
March 2008 - Consumers who experience the trials and tribulations of the cell phone world may be getting the break they need. Draft legislation has been presented to the U.S. House of Representatives that seeks to establish wireless customer protections.
The draft bill has three key sections, according to Rep. Edward Markey (D-Mass.), sponsor of the bill. It seeks to create a national policy of consumer protections that would also give states the ability to enforce any national rules. The wireless consumer protections bill would address protections regarding “wireless early termination penalties, wireless plan and contract disclosures, so-called “truth-in-billing” rules, and service quality reporting,” Markey said during a hearing if the Subcommittee on Telecommunications and the Internet in February.
Consumers and OCC make impact in review of telephone consumer protections
The OCC is here to help you make sense of today's telephone market. We provide fact sheets on topics such as how to choose a local or long-distance telephone provider, how to read a telephone bill and what your rights are as a telephone consumer along with other related materials.