Clifton Telecard Settles Suit With FTC

It was announced today that Clifton Telecard Alliance One, LLC has agreed to a settlement with the FTC in the amount of $1.3 million dollars. The lawsuit was brought against Clifton Telecard back in March 2008 and alleged that CTA had been falsely advertising the amount of minutes available on the prepaid phone cards.

The settlement is to be paid within 5 days and the funds will be wired into a unique bank account for the FTC set up to use for Consumer redress. Any remaining funds will be deposited into the United States Treasury.

The settlement came as no surprise as it is hard to fight the government and win especially when it comes to prepaid phone cards which, let's face it, were engaging in a large abuse of false advertising as a whole over the last few years. However, the amount of the settlement is not much more than a slap on the wrist for a company that produces over 4 billion dollars worth of calling card sales per year.

Source for data in this article = Examiner.com