[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, I[email protected], (202) 418-7120, Enforcement 
Division, Common Carrier Bureau, Federal Communications Commission, 445 
12th Street, SW, Washington, DC 20554; or Marianne Schwanke, 
[email protected], (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

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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