Florida Investigates Complaints About Prepaid Phone Cards

Summary


"They [companies] can make money by telling the truth." Industry leaders such as IDT Telecom Inc. of Newark, N.J., and its distributor Union Telecard Alliance, based in New York, sued six rivals in 2007 to curtail deceptive practices. Consumer complaints also have prompted state and federal investigations.

Florida Attorney General Bill McCollum has launched an investigation into the marketing and business practices of 10 companies, four of them based in South Florida, prompted by more than 200 consumer complaints filed about calling cards last year. Many consumers, alleged the companies did not disclose hidden fees and misrepresented the number of calling minutes they received. Prepaid calling phone cards are used to buy minutes in advance to make local or long-distance calls.

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Extract


Florida Investigates Complaints About Prepaid Phone Cards

TORONTO:

EVERY WEEK, millions of consumers buy prepaid calling cards, primarily to make international calls to family and fri...

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