New Telephone Advertising Guidelines Good for Consumers

WASHINGTON, DC...Consumers will find it easier to compare charges for long-distance and dial-around telephone services under new federal advertising guidelines, according to the nonprofit National Consumers League. The joint policy statement issued today by the Federal Communications Commission and the Federal Trade Commission follows a public forum held last November to examine the problem of deceptive ads for telephone services. NCL participated in that forum and called for truth in telephone advertising. Both the FTC and the FCC already have jurisdiction to take action concerning misleading advertisements; the purpose of the joint policy statement is to clarify what would and would not be likely to result in enforcement action.

"These new guidelines will help stamp out misleading telephone ads," says Susan Grant, NCL vice president for public policy. "No more hidden monthly fees; no more hidden minimum charges; no more hidden conditions or restrictions-what you see should be what you get." Under the guidelines, ads for long-distance and dial-around services (the 10-10 numbers that enable consumers to bypass their regular long-distance companies to make calls) must clearly disclose all costs and conditions. For example, if the ad says that long-distance calls cost 10 cents a minute but there is a $5.95 monthly fee, or a 50 cent minimum charge per call, that information must be clear and conspicuous. In television ads, companies are encouraged to consider making verbal disclosures, rather than simply relying on printed "superscript" on the bottom of the screen, and to show qualifying information for as long as the lead information appears. The guidelines emphasize that advertisements will be judged on whether they would be deemed deceptive based on the overall impression they convey, not just on one element.

"Telephone competition is meaningless if consumers don't have accurate and complete information to compare how much the services cost," says Grant. NCL suggests that consumers ask these questions when considering long-distance telephone services:

• Does the advertised rate only apply to calls made at certain times of day or days of the week? If so, does that fit your calling patterns? What are the charges otherwise?
• Does the advertised rate only apply to calls made to certain geographic areas (out-of-state versus in-state, specific countries, or within a specific number of miles)? Are those the areas you typically call? If not, what are the charges for the places you do call?
• Is there a monthly fee in addition to the cost for the calls? How does that affect the total cost based on your typical calling habits?
• Is there a minimum charge even if you talk for less time?
• If the advertised rate is for calls up to a certain number of minutes, what is the charge if you talk for more minutes?

"If you're not sure how much a company's services cost, take your business elsewhere," advises Grant. The FCC toll-free hotline for information and complaints against telephone companies is (888) 225-5322.

The National Consumers League, founded in 1899, is America's pioneer consumer organization. NCL's three-pronged approach of research, education and advocacy has made it an effective representative and source of information for consumers and workers. NCL is a private, nonprofit membership organization dedicated to representing consumers on issues of concern.

The National Consumers League, founded in 1899, is America's pioneer consumer organization. NCL's three-pronged approach of research, education and advocacy has made it an effective representative and source of information for consumers and workers. NCL is a private, nonprofit membership organization dedicated to representing consumers on issues of concern.