Recent Legal Developments Affecting the Prepaid Calling Card Industry


The Federal Trade Commission and several States have initiated legal proceedings to address alleged illegal practices taking place within the prepaid calling card industry. These new efforts, which directly follow a lawsuit filed by IDT Telecom, Inc. against rival prepaid calling card providers, are aimed primarily at stopping the practice of selling cards which deliver fewer minutes than advertised. In addition, the FTC and States have begun to target prepaid calling card providers who fail to satisfactorily disclose surcharges and fees that may count against the number of advertised minutes.

ATTORNEY ADVERTISING DISCLAIMER: This information may be considered advertising in some jurisdictions under the applicable law and ethical rules. The determination of the need for legal services and the choice of a lawyer are extremely important decisions and should not be based solely upon advertisements or self-proclaimed expertise. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers

Sign Up To Receive Our
Advisories and Compliance Alerts

Sign up for our email list to receive notifications regarding new advisories and news