• On May 5, 2011, the FTC obtained a temporary restraining order from the US District Court for the District of New Jersey enjoining a number of related companies and individuals from deceptive marketing practices surrounding the sale of prepaid calling cards. According to the FTC’s complaint, the defendants marketed prepaid international calling cards that failed to deliver the advertised number of calling minutes. Indeed, according to FTC testing, more than 98% of the cards failed to deliver the number of minutes advertised, and on average the cards provided of only 45% of the advertised minutes. The complaint also alleges that the cards carried hidden fees, such as “hang-up fees” and weekly fees. FTC v. Millennium Telecard, Inc., et al., No. 2:11-cv-02497 (JLL) (D.N.J.).

A copy of the complaint can be found here.

A copy of the Temporary Restraining Order can be found here.

A copy of the FTC’s press release can be found here.

  • On May 26, 2011, the FTC announced that it will be updating its advisory guide on how federal advertising law applies to marketing and sales on the Internet. It last issued guidance on the topic in 2000, in a document entitled “Dot Com Disclosures: Information About Online Advertising.” The agency seeks public comment on possible revisions to the guide, particularly on the technical and legal issues that marketing entities and consumer advocates would like to see addressed. Comments may be submitted until July 11, 2011.

A copy of the Staff Invitation for comments on the Dot Com Disclosure Business Guidance Publication can be found here.

A copy of the FTC’s 2000 guide, “Dot Com Disclosures,” can be found here.

Interested parties may be submit comments electronically here.