FOR IMMEDIATE RELEASE:

March 1, 2000

**FEDERAL COMMUNICATIONS COMMISSION AND FEDERAL TRADE COMMISSION ISSUE
JOINT POLICY STATEMENT ON DECEPTIVE ADVERTISING OF LONG DISTANCE
TELEPHONE SERVICES**

***New Guidelines Issued to Promote Truth-In-Advertising of
Telecommunications Services, including 10-10 Dialing***

Washington, DC -- Today, the Federal Communications Commission (FCC) and
the Federal Trade Commission (FTC) issued a joint Policy Statement to
protect consumers from unfair and deceptive advertising and marketing of
long distance services, including dial-around services \-- often called
"10-10" numbers. The Policy Statement offers guidance to carriers to
ensure their advertising is truthful, complete and non-misleading.
Additionally, it describes the kind of factors the FCC will consider in
determining whether to bring enforcement action against carriers for
deceptive advertising practices.

In recent years there has been an explosion in competition and
innovation in the telecommunications industry. Consumers have reaped
substantial benefits in the form of greater choice and lower prices. But
the proliferation of advertisements for dial-around numbers,
long-distance calling plans, and other new telecommunications services,
as well as an increase in the number of complaints regarding how these
services are promoted, have raised questions about how the principles of
truthful advertising apply in this dynamic marketplace.

The Policy Statement issued today follows a joint forum held by the two
federal agencies in November 1999, which provided government, industry,
and consumer groups an opportunity to discuss the advertising and
marketing of long distance services (see attached Fact Sheet).

"This policy statement is a critical step in protecting the core rights
of consumers in the competitive market which we have worked so hard to
create. Together with truth in billing and freedom from slamming and
cramming, it ensures that consumers will have the knowledge they need to
select the carrier of their choice and be fairly charged for the
services they use," said William Kennard, chairman of the FCC.

\-- more \--

\"This industry provides American consumers with telecommunications
services that are the finest in the world,\" FTC Chairman Robert
Pitofsky said. "This policy statement will help encourage industry to
develop advertising that matches this high standard.\"

From the joint forum, the two federal agencies developed the FCC-FTC
Policy Statement on Truth-in-Advertising, which offers the following
guidance for truthful advertising of long distance services (see
attached Examples of Misrepresentation):

-   All claims must be 1) truthful, 2) non-misleading, and 3)
    substantiated;

-   Carriers should disclose all costs consumers may incur, such as
    per-call minimum charges, monthly fees, and universal service
    charges;

-   Advertising should disclose any time and/or geographic restriction
    on the availability of advertised rates;

-   The basis for comparative price claims should be disclosed, and only
    current information used in making claims; and,

-   Information should be disclosed in a clear and conspicuous manner,
    and without distracting elements so that consumers can understand
    it, and make fully informed choices.

The FCC has previously found that unfair and deceptive marketing
practices by telephone companies may constitute unjust and unreasonable
practices under the Communications Act. The joint Policy Statement
issued today should provide helpful guidance to carriers who wish to
adhere to lawful advertising practices.

In issuing this joint Policy Statement, the FTC and the FCC encourage
industry to adhere to the standards offered in the joint Policy
Statement. These standards provide guidance for carriers who market
long-distance service. Staff of both FTC and FCC remain open to
discussing long-distance advertising concerns and any questions that
others may have on the Policy Statement itself or more generally.
Additionally, the joint Policy Statement does not preempt existing state
law.

\-- FCC \--

News about the Federal Communications Commission can also be found

on the Commission's web site [www.fcc.gov](http://www.fcc.gov/).

**MEDIA CONTACTS:**

Federal Communications Commission, Mike Balmoris at 202-418-0253
([mbalmori@fcc.gov]{.underline}) or John Winston at 202-418-7450
(jwinston@fcc.gov)

Federal Trade Commission, Mitchell J. Katz at 202-326-2161
(mkatz@ftc.gov)

**STAFF CONTACTS:**

Federal Communications Commission, Lynn Vermillera at 202-418-7120 or
Peter Friedman at 202-418-7586

Federal Trade Commission, Allen Hile, 202-326-3122