FTC Crack Down Continues - Diamond Phone Card the Latest Target

The Federal Trade Commission has once again cracked down on phone card distributors, this time going against Diamond Phone Card, Inc. a Elmhurst NY based distributor. The FTC is claiming that Diamond has been misleading consumers with false advertising practices (the same claims as with the ones from before) which stated more minutes on posters than the cards actually delivered. They are also accused of not adequately disclosing all terms and fees on their products and marketing materials.

The FTC has brought the mater to the district court and is seeking an immediate halt order to be issued to stop these deceptive practices. They are also seeking punitive damages, most likely in the millions if you use the Clifton Telecard Suit as a benchmark.

One of the examples given by the FTC was that one Mexico product from Diamond advertised 400 minutes to Mexico but only delivered 106 minutes of calling time.

This most likely will not be last case we see against phone card distributors. It just shows that all of the distributors and service providers need to clean up their act or else it could end up costing them millions.

Read the full article here: http://www.consumeraffairs.com/news04/2009/08/ftc_callingcard_scam.html