The FTC got the US District Court of Miami to issue a temporary injunction against the deceptive advertising used by Alternatel, G.FG. Enterprises (d/b/a Mystic Prepaid), Voice Prepaid, Voice Distributors, and Telecom Express. The FTC alleges that these companies advertise more minutes than they deliver and knowingly rip off the consumers.
The FTC tested a total of 83 cards from the above mentioned companies and on average delivered only 50% of the advertised minutes. Some of the cards named in this case are “Aló Mamá,” “Coffee Time,” “Rey de Florida,” “Tree Monkey,” and “Voz do Brasil.” One of the cards tested only delivered 23 minutes to Panama out of an advertised 360 minutes.
The agency is also seeking for the companies to provide restitution to those consumers who were ripped off or at least be forced to give up some of their gains received due to these practices. The matter will be brought to trial some time in the near future.
Judging by the slew of recent movement against prepaid cards by various government agencies, I think this business is high on the radar screen and we will be seeing a lot more actions country wide. Don't be surprised if your company is targeted next! The mandate is clear... clean up your business or you will be in for a tough ride!
To read the full details of the FTC ruling got to the FTC Website.
The FTC tested a total of 83 cards from the above mentioned companies and on average delivered only 50% of the advertised minutes. Some of the cards named in this case are “Aló Mamá,” “Coffee Time,” “Rey de Florida,” “Tree Monkey,” and “Voz do Brasil.” One of the cards tested only delivered 23 minutes to Panama out of an advertised 360 minutes.
The agency is also seeking for the companies to provide restitution to those consumers who were ripped off or at least be forced to give up some of their gains received due to these practices. The matter will be brought to trial some time in the near future.
Judging by the slew of recent movement against prepaid cards by various government agencies, I think this business is high on the radar screen and we will be seeing a lot more actions country wide. Don't be surprised if your company is targeted next! The mandate is clear... clean up your business or you will be in for a tough ride!
To read the full details of the FTC ruling got to the FTC Website.
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