FTC Reaches Settlement with NJ Based Millennium Telecard, Inc.

Just wanted to follow up on an earlier post about Millennium Telecard who had run a foul of the Federal Trade Commission for deceptive advertising practices. It seems as if both sides have reached an agreement where Fadi Salim, the principal of this company and two others also under investigation, has agreed to hand over 2.3 million dollars to settle this accusation of wrong doing (without acknowledging that they did anything wrong of course). The money will be paid over a 10 year period and the settlement will ultimately stop Mr Salim from misrepresenting the amount of minutes on a phone card in any of it's advertising campaigns.

The settlement is the biggest of it's kind and is sure to signal the end of what has been a dark period of prepaid calling, where the fees in many cases would out-bill the actual minutes on a card. It is important to note that they will still be allowed to have fees on their cards but they all must be clearly displayed on all printed materials and be easy to understand (better than nothing I guess).

I wonder if this government crackdown is at the beginning, the middle or the end?

To read the full article go to the Star Ledger Article here!

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