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Fla AG settles with prepaid card company

Date: 1/7/2009 10:59:20 AM

Florida’s Attorney General said Tuesday his office has reached a settlement with Locus Telecommunications over marketing practices related to its international prepaid calling cards in Florida.

An investigation determined that the New Jersey-based telecommunications provider was offering unlimited minutes, which actually were not unlimited, and failed to disclose actual amounts of fees and surcharges, according to a press release.

As part of the settlement agreement, Locus must stop any potentially deceptive ads, provide 100 percent of the minutes advertised, and submit to three years of auditing by the attorney general’s office.

Calls to Locus were not immediately returned.

The settlement also provides $105,000 over three years to The Hispanic Institute, which assisted the attorney general’s office with its investigation into the prepaid calling card industry.

“Many Florida residents use these cards to communicate with their family, friends and loved ones,” said Attorney General Bill McCollum. “These new standards will protect that essential bond of communication.”

Locus is the thirteenth company to reach a settlement with the attorney general over issues related to the prepaid calling card industry.

The Economic Crimes Division is still investigating other companies that have been allegedly engaging in similar deceptive and unfair trade practices.

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Source: http://www.bizjournals.com/southflorida/stories/2008/12/29/daily15.html


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