Toll-Free
Telephone Number Scams |
Calls to 800 and 888 numbers are almost always
free, but there are some exceptions. Companies that provide audio entertainment or
information services may charge for calls to 800, 888 and other toll-free numbers, but
only if they follow the Federal Trade Commissions 900-Number
Rule.
This Rule requires a company to ask you to pay for entertainment or information
services with a credit card or to make billing arrangements with you before
they provide the service. If you dont use a credit card, the law says companies also
must provide you with a security device, such as a personal identification number (PIN),
to prevent other people from using your phone to charge calls to these services.
Presubscription Agreements
For a company to charge you for a call to an 800 or 888 entertainment or
information service, it must obtain your agreement to the billing arrangement in advance.
The company must tell you all relevant information about the arrangement, including the
companys name and address, rates and rate changes, and business telephone number.
The company also must use a security device, like a PIN, to prevent unauthorized
charges to your telephone. The "presubscription agreement" must be in place
before you reach the entertainment or information provided by the service. If you
authorize a company to charge your credit card for an 800 or 888-number call, the company
has met the Rules requirements.
Prohibitions and Unlawful Practices
Certain practices relating to 800 and 888 numbers are prohibited by the 900-Number
Rule. For example, a company cant charge you for dialing an 800 or 888 number unless
you have entered into a valid presubscription agreement. Also, if you dial an 800 or other
toll-free number, the company is prohibited from automatically connecting you to a
900-number service, and from calling you back collect. However, the law allows a company
to promote a 900-number service during the 800-number call, as long as you
would have to hang up and dial the 900 number to reach the service.
Some companies break the law by charging improperly for entertainment and information
services that you reach by dialing an 800 or 888 number. For example, some services ask
you during the course of a call to simply "Press 1" to be charged automatically.
Others advertise a service as "free" but then unlawfully charge for calls placed
to that service. Still others may charge for calls you place to 800 or 888 numbers by
billing you for calls to a different type of service such as calls to an
international number. Some will charge a "monthly club fee" on your phone bill
after you call an 800 or 888 number. Other services fail to take adequate precautions to
prevent the unauthorized use of your telephone to make these calls; they may charge you
for 800-number calls you didnt make or approve.
Minimize Your Risk
Heres how to minimize your risk of unauthorized charges:
- Remember that dialing a number that begins with 888 is just like dialing an 800 number;
both are often toll-free, but not always. Companies are prohibited from charging you for
calls to these numbers unless they set up a valid presubscription agreement with you
first.
- Recognize that not all numbers beginning with "8" are toll-free. For example,
the area code 809 serves the Dominican Republic. If you dial this area code, youll
be charged international long distance rates.
- Make sure any 800 or 888 number you call to get entertainment or information that costs
money provides security devices including PINs before you enter into a
presubscription agreement with them.
- Check your phone bill for 800, 888 or unfamiliar charges. Calls to 800 and 888 numbers
should be identified. Some may be mislabeled as "long-distance" or "calling
card" calls and are easy to overlook.
- Dispute charges on your phone bill for an 800 or 888 number if you dont have a
pre-subscription arrangement. Follow the instructions on your billing statement.
- Realize that if the telephone company removes a charge for an 800 or 888-number call,
the entertainment or information service provider may try to pursue the charge through a
collection agency. If this happens, you may have additional rights under the Fair Debt
Collection Practices Act.
For More Information
The following organizations can provide additional information and help you file a
complaint.
- Your state Attorney General usually has a division that deals with consumer protection
issues.
- The Federal Communications Commissions National
Call Center at 1-888-CALL-FCC (1-888-225-5322). The Center answers consumer inquiries
relating to communications law and policy, matters pending before the FCC, and any
possible violations of FCC law or policy.
The FTC works for the consumer to
prevent fraudulent, deceptive and unfair business practices in the
marketplace and to provide information to help consumers spot, stop and
avoid them. To file a
complaint or to get free information
on consumer issues, visit
www.ftc.gov or
call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The
FTC enters Internet, telemarketing, identity theft and other fraud-related
complaints into
Consumer Sentinel, a
secure, online database available to hundreds of civil and criminal law
enforcement agencies in the U.S. and abroad.
|
FEDERAL TRADE COMMISSION |
FOR THE CONSUMER |
1-877-FTC-HELP |
www.ftc.gov |
|
May 1997 |