Get the Facts Before You Stuff Your Stockings!

What you need to know before purchasing prepaid long distance phone cards

December 13, 2006 — Prepaid long distance phone cards make great Christmas stocking stuffers. However, before you consider making such a purchase, be sure the value of your phone card has not been reduced through undisclosed or hard-to-find information.

The Competition Bureau receives numerous complaints throughout the year relating to prepaid long distance phone cards. The complaints deal with issues such as: less minutes provided than advertised, hidden fees, and higher per-minute rates than advertised.

Check Out the Details!

The following tips will help consumers protect themselves and ensure that they purchase cards that deliver the number of minutes advertised:

• Beware The Fine Print Advertising posters for prepaid long distance phone cards often include information in fine print listing additional charges such as: connection fees, minimum charges, calling time restrictions, service fees or other surcharges, additional fees for calling a cellular phone or for calling from a pay phone, and/or weekly maintenance fees. These fees and charges could greatly reduce your calling time.
• Beware Vague Language Some ads for prepaid cards use vague language such as "may include", "may charge", or "may apply". In general, it is easier to calculate the number of minutes on a prepaid long distance phone card that has few or no fees.
• Beware The Unbelievable Deal Some prepaid phone cards offer fantastic rates: "the lowest" or "one cent per minute". A card with a higher price per minute may be a better deal compared to a card with a lower price per minute that has added fees and charges.

Consumers who suspect they have been the victim of deceptive business practices or who want information on the application of the Competition Act should contact the Bureau's Information Centre at 1-800-348-5358, or visit the Web site at www.competitionbureau.gc.ca.

The Competition Bureau is an independent law enforcement agency. We contribute to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

For media enquiries, please contact:
Maureen McGrath
Communications Advisor
Competition Bureau
819-953-8982

For general enquiries, please contact:
Information Centre
Competition Bureau
819-997-4282
1-800-348-5358