WASHINGTON-The Federal Communications Commission and the Federal Trade Commission have released a policy statement on the advertising practices of long-distance companies-specifically 10-10 dialing, sometimes referred to as dial-around services.
FCC Commissioner Harold Furchtgott-Roth dissented saying, “certain carriers’ marketing may be confusing, misleading, or even fraudulent [and] I share the desire to see this advertising curtailed … [however] when we act outside our description, our `moonlighting’ is not only questionable as a matter of law, it shortchanges the American people on the job they hired us to do.”
Furchtgott-Roth acknowledged there was a gap in authority between the FCC and FTC as to who should patrol such practices but said Congress should move to close the gap, not the FCC.
At the same time, the agencies announced the guidelines, the FCC also announced a consent agreement with MCI Worldcom Corp. which requires the long-distance company to review a year’s worth of past ads for dial-around services, submit a report to the FCC and pay a $100,000 fine.
“To reaffirm this commitment and to address concerns expressed with certain aspects of the company’s dial-around advertising, MCI Worldcom entered into a consent decree with the FCC. As confirmed by the terms of the consent decree, MCI Worldcom is confident that its advertising fully complies with, and in many respects exceeds, the new guidelines announced today,” said MCI spokeswoman Claire Hassett.
Additionally, legislation has been introduced on Capitol Hill to help curb the problem.
