ALABAMA A&M and AUBURN UNIVERSITIES

AUBURN, MAY 21---To anybody who watches television, ads for “10-10” long distance phone services are unavoidable. Various actors tell consumers to just hit 10-10 and some combination of three more digits, and substantial savings will be theirs for the taking!

That’s about all the viewer learns.  No doubt because those big discounts tend to evaporate upon close inspection, says Dr. Fred Waddell, Extension family resource management specialist with the Alabama Cooperative Extension System.

These flashy ads tell consumers little about how savings are calculated, what other fees are added, where to get more information or who owns the service.  Some ads have exaggerated savings, confusing rates and buried fees and charges. Making only a few calls can rapidly eat up any savings, says Waddell.

“One ad boasts you can talk 10 minutes and save 50 percent.  What the ad doesn’t say is the savings come off the service’s highest rates, which few people ordinarily would pay,” adds Waddell.

“Another ad says ‘call 20 minutes and pay just 99 cents’.  It fails to tell you a one-minute call also costs 99 cents.”

The most heavily advertised 10-10 services are owned by long-distance giants MCI and AT&T.  Often, these 10-10 services can be more expensive than firms’ regular long-distance calling plans, says Waddell.
 A rising chorus of complaints suggests consumers are being misled. Hundreds have lodged objections with the Federal Communications Commission and state regulators.  Now the federal
government and some states are looking into whether any of the 10-10 ads violate truth-in-advertising laws.
 
“Consumers don’t have to wait for a legal opinion to know that a lot of these ads ride close to the law’s edge, “ Waddell says.

Here is what consumers will find in the “not-so-fine print.

10-10-345 (AT&T)
The claim: Pay 10 cents a minute anytime.
The fine print: The first minute costs 20 cents.

10-10-321 (Telcom USA/MCI)
The claim: Pay as little as 5 cents a minute.
The fine print: That discount comes off rates as high as 30 cents
a minute.

10-10-297 (Excel Communications)
The claim: Pay 15 cents a minute on weekdays, 9 cents other times.
The fine print: Adds 4.4 percent to monthly bill in fees.

10-10-811 (Vartec Telecom)
The claim: Pay 10 cents a minute any time.
The fine print: Minimum charge is 30 cents, and adds 4.9 percent to
bill in fees.

SOURCE:  DR. FRED WADDELL, Extension family resource management specialist, Alabama Cooperative Extension System (334) 844-3244.