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FTC CRACKS DOWN ON PRE PAID PHONE CARD FRAUD

The Federal Trade Commission continued its crackdown on fraud in the prepaid calling card industry, reaching a $500,000 settlement with New York-based Diamond Phone Card.

“Unlike Diamond Phone’s ads, the FTC’s message here is clear,” said FTC Chairman Jon Leibowitz in a statement. “If you deceive consumers about the prepaid calling cards you’re selling, we will take you to court and force you to give up the money you made through deceptive sales tactics.”

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