Watchdog to scrutinize prepaid phone cards for fine print, hidden fees
06.12.2007 16:02
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- Source: cbc.ca
The federal competition watchdog on Thursday said it will be ringing up providers of prepaid, long-distance calling cards to make certain they are disclosing all terms and conditions to the consumer. The Competition Bureau said it receives a number of complaints each year from frustrated consumers complaining about hidden administration fees, cards that ran short of minutes promised and higher rates than advertised. The federal agency said its new outreach initiative will ensure that all calling card providers adhere to the following protocol: - Disclose rates per minute and the total number of minutes available on each card.
- Ensure that any conditions affecting the rate per minute and number of minutes are printed on the card in a clear font and presentation.
- Stop use of contradictory, fine print disclaimers.
"This is an important initiative. Consumers need to be provided with accurate information so that they can make informed decisions and businesses need to be aware of the standards they need to follow in order to conform to the provisions of the Competition Act," Andrea Rosen, acting deputy commissioner of competition, said in a release. "When deciding which type of prepaid calling card to purchase, consumers should be wary of 'too good to be true' claims such as 'the lowest rates' or 'one cent per minute' as there may be hidden extra charges," the bureau said.
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