Federal Agencies Probe Long-Distance Marketing

The Federal Trade Commission and Federal Communications Commission will examine the way long-distance telephone companies advertise and market their dial-around services, generally known as “10-10” numbers, in a hearing set for Nov. 4. Sharp increases in consumer complaints to both agencies about often confusing and misleading direct mail solicitations and direct response print, broadcast and television ads are prompting the hearing, the agencies said in a statement. A large portion of the telephone industry is regulated by the FCC while the industry’s advertising is monitored by the FTC, which also oversees the direct marketing and telemarketing industry’s advertisement and order fulfillment practices. The hearing could lead to tighter control of the way telephone companies, particularly long-distance service providers, advertise their services, either by agency rule or congressional action in the form of tough new laws.