FOR IMMEDIATE RELEASE NEWS MEDIA CONTACTS:

March 1, 2000 Michael Balmoris (202) 418-0253

John Winston (202) 418-1107

**Statement of FCC Chairman William E. Kennard on the Joint FCC/FTC
Policy**

**on Long-Distance/Dial-Around Advertising**

Today I am pleased to announce that we have followed through on the
commitment we made to consumers last November to put an end to
misleading and deceptive advertising for long-distance and dial-around
services. We have joined with the FTC to provide common sense guidance
to industry on what is acceptable advertising.

The new guidelines ensure that consumers will not get the run around on
dial-around. Five-cents a minute is fine, but hiding five-dollars a
month in the fine print is not.

We are issuing today a policy statement adopted by both the FCC and the
FTC that establishes basic principles for truthful advertising. These
principles can be described with four simple words:

-   Truthfulness

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-   Disclosure

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-   Clarity

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-   Conspicuousness

Additionally, we are also undertaking a consumer education effort based
on this policy statement. This follow-up to our Market Sense initiative
informs consumers about how to watch, read and listen to advertising for
long-distance services so that they reap the benefits of the competitive
telecommunications market we are creating.

Our Truth-in-Advertising initiative, which has led to this policy
statement, enjoys wide support from consumer groups, represented here
today by AARP. I would like to particularly recognize the Rev. Kenneth
B. Smith, one of their board members who is here from Chicago to
underscore just how important this issue is to consumers, as well as the
National Consumer League, TRAC, major long-distance providers, and
NARUC, our state partners in consumer protection.

I also am very pleased to announce that the Federal Communications
Commission\'s Enforcement Bureau yesterday entered into a consent decree
with MCI/Worldcom regarding MCI\'s marketing and advertising practices
for its dial-around services. The consent decree obligates MCI/Worldcom
to conform its dial-around marketing practices to principles similar to
those outlined in the policy statement released today.

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.

We are taking a critical step in promoting a competitive market. This
policy statement puts all carriers on equal footing with respect to
advertising practices. It protects carriers who do not engage in
misleading advertising practices from losing customers to those who do.
The FCC stands ready to take enforcement action against carriers that
engage in the kind of misleading practices described in the policy
statement.

I want to thank Chairman Pitofsky and his staff for their considerable
expertise and guidance in developing this policy statement. By working
with each other and with the states in implementing this policy
statement we will ensure consumers get the information they need to make
sense of the market.

\- FCC -