FRAUD WATCH
Beware Of Baseball Player Phone Cards - Unscrupulous prepaid phone card dealers have preyed on immigrant communities in the U.S. for years, offering “bargain” rate cards which failed to live up to their promise. Recently, this practice was highlighted by a scam involving prominent Major League Baseball players from the Dominican Republic. The so-called “Grandes Ligas” prepaid cards distributed by New Jersey-based telecom Compass Global Inc. featured photos of famous Dominican players like pitchers Pedro Martinez and Octavio Dotel and sluggers Miguel Tejada, Vladmir Guerrero, and David Ortiz. Thousands of consumers in New York City, many of them low-income Dominican immigrants, purchased the cards for as little as $2 each. However, most callers found that when they tried to call friends and relatives in the Dominican Republic with the cards, they either could not get through or the minute amount on the cards were far less – often by an hour or more -- than advertised. Consumers should steer clear of these and other prepaid phone cards offered by Compass Global. Prepaid phone cards are often a good deal for consumers who are light long distance users, but be sure to check the fine print before buying one. Prepaid phone cards should have billing information either on the card itself, its packaging, or on an advertisement in the store where they are sold. Watch out for high billing increments (anything more than 1 minutes should be avoided), high connection fees, and cards that expire less than 30 days after first use. TRAC has found that large discount warehouse stores like Costco, B.J.’s, and Sam’s Club are generally a good bet for finding attractively priced phone cards without a lot of add-on fees and surcharges. For more information on the Grandes Ligas scam, click here (registration required).
WASHINGTON WATCH
TRAC Applauds Pennsylvania Wireless Tax Repeal - Pennsylvania wireless consumers are one step closer to having more money in their pockets this holiday season. Last week the Pennsylvania House of Representative voted to pass House Bill 338 which repeals the state’s 5% Gross Receipts Tax (GRT) on wireless bills. The measure, which still requires approval by the state Senate and Governor Rendell, will help reduce the burden the state’s wireless consumers shoulder. Wireless taxes and fees make up approximately 20% of the average Pennsylvania wireless consumer’s bill. “Thanks to this sensible action by the Pennsylvania House, consumers in the Keystone State – especially low-income users and others on fixed budgets – will be better able to afford the convenience and efficiency that a wireless phone brings,” said TRAC Research Associate John Breyault. For more information on this issue, click here.
WIRELESS WATCH
Donated Cell Phones Yield Prepaid Cards For Soldiers – Sometimes all it takes to make a difference are a couple of determined teenagers. In April 2004, thirteen year old Brittany Bergquist and her twelve year old brother Robbie of Norwell, Massachusetts heard a news story about a soldier in Iraq who had run up a huge phone bill calling home. The decided that something needed to be done and started Cell Phones for Soldiers with their piggy bank money and snack money from friends at school, with the goal of helping soldiers overseas call home. They hope to provide as many soldiers as possible with prepaid calling cards for now, with an ultimate goal of providing banks of satellite phones, video phones and VOIP communications. Through generous donations and the recycling of used cell phones from drop-off sites across the country, they have already distributed thousands of calling cards to soldiers in Iraq, Kuwait, Afghanistan, and elsewhere. A list of drop-off sites is available online by clicking here. Service people and their families interested in applying for a card should click here. For additional information on Cell Phones for Soldiers, click here or visit www.cellphonesforsoldiers.com.
TRAC IN THE NEWS
Using Cell Phones to Compare Prices – In October, we wrote about a new technology called ScanZoom that allows consumers to use their cell phones to scan bar codes on items in stores to compare prices in nearby stores and online (click here to read that article). In the December 11 edition of the Chicago Tribune, TRAC’s recommendation is quoted as a way for sharp-eyed consumers to save money. Click here to read that article.
INTERESTING LINKS
FCC Main Page: http://www.fcc.gov
FCC Complaint Form - http://svartifoss2.fcc.gov/cib/fcc475.cfm
List of State Regulatory Commissions: http://www.naruc.org/displaycommon.cfm?an=15
What do you think? Got a tip you want to share? Nominate your "Scam of the Week" and your "Tip of the Week" - If we select your submission, we'll give you a one-year free membership in TRAC and acknowledge your contribution by name in TRACNotes. Send an e-mail to trac@trac.org to submit your ideas!
TRACNotes is distributed to TRAC members and those who have signed up on the TRAC website "Newscenter." If you do not want to receive TRACNotes, simply click here and let us know. You won't receive these in the future. We hope you choose to remain a part of our network, and that you find TRACNotes helpful. Our goal is to provide you with useful information about what is happening in the telecommunications marketplace for consumers and to keep you up to date on TRAC's policy advocacy. If you like what you see, please consider becoming a member of TRAC by clicking here.
©2005 Telecommunications Research and Action Center. TRAC grants unlimited rights to reproduce TRACNotes or any information contained in it provided attribution is given as follows: "Source: Telecommunications Research and Action Center. http://www.trac.org"
