FCC Fines Calling Card Cos. $20M Over Shady Marketing

Law360, Chicago (September 2, 2011, 12:58 PM EDT) -- The Federal Communications Commission slapped four prepaid calling card companies with fines totaling $20 million Thursday for allegedly targeting low-income and minority communities with deceptive marketing practices.

The regulator ordered Lycatel LLC, Touch-Tel USA LLC, Locus Telecommunications Inc. and STi Telecom Inc.— formerly Epana Networks Inc. — to each forfeit $5 million for allegedly violating the Communications Act of 1934 by including hidden fees and surcharges on their calling cards that leave customers able to use only a fraction of the phone minutes they thought they...
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