FTC and FCC to Probe Long Distance Advertising Practices

The Federal Trade and Communications Commissions jointly plan to examine the way long distance telephone companies advertise and market their dial-around-services, generally known as “10-10” numbers at a joint public hearing on November 4.

Sharp increases in the number of consumer complaints to both agencies about often confusing and misleading direct mail solicitations and direct response print, broadcast and television ads are prompting the hearing, the FCC and FTC said in a joint statement.

A large portion of the telephone industry is regulated by the FCC while the industry’s advertising is monitored by the FTC, which also oversees the direct marketing and telemarketing industry’s advertisement and order fulfillment practices.

The hearing could lead to tighter controls over the way telephone companies, particularly long-distance service providers, advertise their services, either by agency rule or Congressional action in the form of tough, new laws.

Both agencies are asking individuals and trade association representatives interested in testifying at the hearing to register with them by Oct. 20.

The agencies’ statement on to say that while the increased competition for 10-10 services is providing consumers with greater choices in deciding which carrier to choose, they must have accurate information. Without correct and truthful information, consumers cannot make informed purchasing decision sand the “long-distance [telephone] market will be inhibited.”