FTC preparing lawsuit against IDT

notice: the following article was sent to clients of commlawgroup.com - and is not original content authored by calling-card-review.blogspot.com

Subject: Fwd: CLIENT ADVISORY - Prepaid Services Clients
Begin forwarded message:
From: "Jonathan S. Marashlian" <jsm@commlawgroup.com>Date: September 28, 2007 2:26:50 PM EDTTo: <mail@commlawgroup.com>Subject: CLIENT ADVISORY - Prepaid Services Clients
To Firm Prepaid Services Clients:

Our office recently learned that the Federal Trade Commission (“FTC”) is preparing to file a lawsuit against IDT Telecom (“IDT”) in federal court. We believe the lawsuit will allege that IDT engaged in deceptive practices in connection with the company’s marketing and advertising of prepaid calling cards. Details of the lawsuit have not been made public yet, but we expect the complaint to be filed in federal court shortly. Our office is closely monitoring this proceeding and will advise clients once details are publicly available.

The anticipated FTC lawsuit comes on the heels of pending Congressional legislation (HR 3402) that would regulate marketing and other prepaid industry practices, investigations by the Attorney General of the State of Florida, an IDT lawsuit against several of its competitors, and a variety of class action lawsuits in several states. Our office recently published an article in The Prepaid Press detailing the history of these proceedings, and the possible effect they have on the future of the industry. Clients are invited to read this article at: http://www.prepaid-press.com/news_detail.php?t=paper&id=1919.

In addition, our office has prepared the attached summary of the existing state laws and regulations affecting a prepaid calling card service provider’s advertising and disclosure requirements. This document is intended to provide a brief overview of the existing state laws and regulations governing the marketing and other business practices of prepaid calling card service providers operating in the respective states.
If you would like to receive further updates regarding the FTC lawsuit, have further questions about the applicability of the list of state statutes/regulations to your company, or require assistance with related matters, please contact Jonathan Marashlian at 703-714-1313 or by e-mail: jsm@commlawgroup.com.