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FTC Takes Action Against Millenium Telecard
Posted by [realname-link] on 02 Aug 2011
The FTC has issued a temporary restraining order against Millenium Telecard for false marketing claims. In particular, the FTC says that consumers did not receive the advertised number of minutes on Millenium phone cards.
Millenium sells calling cards thru a number of websites (such as MTCcard.com), in many retail and convenience stores, and in their own retail outlets located in New Jersey.
The FTC explains that the basis for the legal action is a careful analysis of Millenium phone cards which determined that consumers were not getting enough minutes to match the company's advertising claims. They write:
...in extensive testing of the defendants’ cards conducted by the FTC between August 2010 and March 2011, the cards delivered an average of only 45% of the advertised minutes. Of the 141 cards tested, 139 – more than 98% – failed to deliver the number of minutes advertised on the point-of-sale posters.
The FTC also indicates that the company charges numerous hidden fees, such as 'hang up fee's, which are not clearly or prominently explained. They write: "Such fees are disclosed in a tiny font and in vague terms that are hard to understand in any language".
We advise our visitors to avoid Millenium calling cards for the time being.
However, it is important to note that this legal filing is not a finding of guilt. Rather, it is a temporary restraining order pending action by the courts. No doubt the FTC will present a compelling case, but final action must wait until the court case concludes.
In addition to Millenium Telecard, the company owner and a number of related companies, including Coleccion Latina and Telecard Center USA, were also cited. The case was filed in the US District Court in New Jersey.
These calling cards get our 'Best Buy' rating.
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