FTC Settles with Diamond Phone Card Over Allegations of False Claims

SHARE

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

If you have any questions or concerns about the information contained in the attached Advisory, please contact the attorney assigned to your account. Alternatively, you may reply to this message via e-mail and someone will promptly respond to your inquiry.

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