FTC Cracks Down on Another Phone Card Distributor for Deceptive Practices

The latest phone card distributor to be slapped on the hand by the FTC is DR Phone Card owned and operated by David Rosenthal, a long standing distributor of prepaid calling cards dating all the way back to the Econophone days from the early 2000s. The FTC is suing the company for deceptive advertising practices using terms like "No Fees" on posters for cards where there were fees and for delivering less than the advertised minutes on its cards. The FTC tested 169 of the companies cards and on each and everyone found that they delivered far less than the advertised minutes. In fact they found that most delivered less than 50% of the advertised minutes. If the lawsuit is successful, consumers most likely stand to get some relief in form of minutes or some sort of other type of financial settlement.

Pending the court hearing DR Phone Cards has agreed to stop all "deceptive" practices the FTC lists in it's suit and has agreed to cooperate fully with the FTC and the courts on this matter.

To read more on the suit, visit the FTC web site.