[Federal Register Volume 64, Number 187 (Tuesday, September 28, 1999)]
[Notices]
[Pages 52328-52329]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-25212]
[[Page 52328]]
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FEDERAL TRADE COMMISSION
Announcement of Joint Public Forum on the Advertising and
Marketing of Dial-Around and Other Long-Distance Telecommunications
Services
AGENCY: Federal Trade Commission.
ACTION: Notice.
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SUMMARY: The Federal Trade Commission and Federal Communications
Commission plan to hold a public forum in November 4, 1999, to discuss
the advertising and marketing of dial-around and other long-distance
telecommunications services. This Federal Register Notice outlines the
topics to be addressed at the forum and the procedures to be followed
by those who wish to participate in the forum.
DATES: The public forum will be held on November 4, 1999, in
Washington, D.C., from 8:30 a.m. until 5:30 p.m. Notification of
interest in participating in the forum must be submitted on or before
October 20, 1999.
ADDRESSES: Notification of interest in participating in the public
forum should be submitted in writing to Lynn Vermillera, Enforcement
Division, Common Carrier Bureau, Federal Communications Commission, 445
12th Street, SW, Washington, DC 20554. The public forum will be held at
the Federal Communications Commission, 445 12th Street, SW, Commission
Meeting Room, Washington, DC 20554.
FOR FURTHER INFORMATION CONTACT:
Lynn Vermillera, Ivermill@fcc.gov, (202) 418-7120, Enforcement
Division, Common Carrier Bureau, Federal Communications Commission, 445
12th Street, SW, Washington, DC 20554; or Marianne Schwanke,
mschwanke@ftc.gov, (202) 326-3165, Division of Marketing Practices,
Bureau of Consumer Protection, Federal Trade Commission, 600
Pennsylvania Avenue, NW, Washington, DC 20580.
SUPPLEMENTARY INFORMATION:
Section A. Background
As a result of the Telecommunications Act of 1996 \1\ and the
subsequent increase in competition in the long-distance
telecommunications market, many companies are offering consumers a
variety of choices in long-distance calling. Numerous long-distance
carriers, both large and small, heavily promote, through national
television, print, and direct mail advertising campaigns, the use of
their own long-distance telecommunications services, including dial-
around services. These advertisements urge consumers to dial a long-
distance provider's access code (or ``10-10'' number) before dailing a
long-distance number to bypass or ``dial around'' the consumer's chosen
long-distance carrier and to get a better rate. Other advertisements
promote ``calling plans'' that offer a fixed per-minute rate during
certain hours or on particular days. The increased competition for
long-distance call volume through dial-around and other services has
given consumers greater choice in deciding which carrier to use and a
greater diversity in the prices charged for those calls. With accurate
information, consumers will benefit from being able to choose the
particular carrier that meets their long-distance calling needs at the
most economical price. Conversely, if consumers are deceived by the
advertising claims, they cannot make informed purchasing decisions and
ultimately the growth of competition in the long-distance market will
be inhibited. Since consumers of dial-around services must rely on the
information contained in the advertisements as the basis for
determining whether to choose a particular dial-around service, it is
even more critical that such advertising claims be truthful and not
misleading.
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\1\ 47 U.S.C. 228 and 15 U.S.C. 5714(1).
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Because of the proliferation of advertisements for these new
services, as well as the increased number of complaints by consumers
regarding how dial-around and other long-distance services are
marketed, the Federal Trade Commission (``FTC'') and Federal
Communications Commission (``FCC'') have concluded that a public forum
would be appropriate to afford staff and interested parties an
opportunity to explore the issues raised by the advertising and
marketing of dial-around and other telecommunications services. Based
on the information provided at the forum, the agencies will determine
whether future action is necessary regarding the advertising and
marketing of long-distance telephone services.
Section B. Public Forum
The FCC and FTC staff will conduct a public forum to discuss issues
raised by the advertising and marketing of dial-around and other long-
distance services. The purpose of the forum is to facilitate a
discussion among members of industry, consumer groups, and law
enforcement about issues raised by claims made in many dial-around and
other long-distance telephone service advertisements, and possible
solutions to these concerns, including additional guidance to the
industry. The forum will be divided into two sessions. The morning
session will begin with an overview of applicable advertising law,
which prohibits deceptive representations. This overview will be
followed by a discussion among representatives from industry, consumer
organizations, and law enforcement, as well as marketing and
advertising experts, regarding various issues, including consumers'
need for cost information, the use of comparative claims, and the
effectiveness of disclosures. The afternoon session will provide
participants with the opportunity to analyze claims made in various
mock advertisements illustrative of the issues raised by current
advertisements for dial-around and other long-distance telephone
services. Following this discussion, participants will have the
opportunity to present possible solutions to the concerns raised by
current advertising in this area. There also will be time for public
comment following the afternoon session.
Section C. Request To Participate
The FCC and FTC invite members of the public, industry, and other
interested parties to participate in the forum. To be eligible to
participate, you must file a request to participate by October 20,
1999. If the number of parties who request to participate in the forum
is so large that including all requesters would inhibit effective
discussion among participants, staff of the FTC and FCC will select as
participants a limited number of parties to represent the relevant
interests. Selection will be based on the following criteria:
1. The party submitted a request to participate by October 20,
1999.
2. The party's participation would promote the representation of a
balance of interests at the forum.
3. The party's participation would promote the consideration and
discussion of the issues presented in the forum.
4. The party has expertise in issues raised in the forum.
5. The party adequately reflects the view of the affected
interest(s) which it purports to represent.
If it is necessary to limit the number of participants, those who
requested to participate but were not selected will be afforded an
opportunity, if at all possible, to present statements during a limited
time period at the end of the session. The time allotted for these
statements will be based on the amount of time necessary for discussion
of the issues by the selected parties, and on the number of persons who
wish to
[[Page 52329]]
make statements. Requesters will be notified as soon as possible after
October 20, 1999, if they have been selected to participate.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 99-25212 Filed 9-27-99; 8:45 am]
BILLING CODE 6750-01-M
