FTC Settles with Diamond Phone Card Over Allegations of False Claims


On May 20, 2010, the Federal Trade Commission (“FTC”) announced a stipulated order (“Settlement Agreement”) resolving its consumer protection case against calling card company, Diamond Phone Card., Inc.  In the complaint, the FTC alleged that the company made false claims about the number of calling minutes its card delivered. The complaint also alleged that the company failed to properly disclose “maintenance fees” and other hidden fees that reduced the number of minutes on the card.  The Settlement Agreement requires Diamond and its principals to pay $500,000 and to disclose clearly all fees associated with their cards.

The FTC’s complaint against Diamond and Settlement Agreement may be obtained through the FTC’s website:  https://www.ftc.gov/opa/2010/05/diamondphone.shtm

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