$5 Million Forfeiture Proposed against Mobile Carrier for Deceptive Marketing of Calling Cards

The Federal Communications Commission’s Enforcement Bureau has proposed a $5 million forfeiture against NobelTel, LLC for deceptively marketing prepaid calling cards to consumers.

With this latest enforcement action, the FCC has now proposed forfeitures totaling $30 million against six carriers within the past year to combat the deceptive marketing of prepaid calling cards.

Such cards are commonly sold in convenience stores and gas stations across the country.

In each of the six enforcement actions to date, the FCC’s Enforcement Bureau found that the carrier targeted immigrant populations, and claimed that buyers could make hundreds or thousands of minutes of telephone calls to their native countries for just several dollars.

However, the FCC’s Enforcement Bureau discovered that buyers could make calls for only a fraction of those minutes, due to the carriers’ assessment of various fees that are not clearly and conspicuously disclosed.

FCC Chairman Julius Genachowski said, “As this action makes clear, we remain vigilant in our effort to crack down on prepaid calling card scammers who engage in deceptive marketing. Millions of Americans depend on prepaid calling cards to connect with family and friends around the world, and the FCC will not tolerate predatory schemes that include unfair or unclear fees.

The Commission will continue to monitor marketing activities around prepaid calling cards – and will not hesitate to take decisive action when warranted.”

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