Announcement of Joint Public Forum on the Advertising and Marketing of Dial-Around and Other Long-Distance Telecommunications Services

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