Newsletter
FTC APPROVES DRAFT GUIDE-LINES AGAINST MISLEADING OR FRAUDULENT MARKETING PRACTICES IN THE MOBILE TELECOMS MARKET
In early August the FTC approved the draft of its "Guidelines for Warnings Concerning Mislead-ing or Fraudulent Marketing Practices in the Mobile Telecommunications Market." With regard to marketing promotions by some mobile operators, in which a handset is bundled with a number, the FTC will require that operators not discourage consumers from terminating agree-ments early without legitimate grounds or by means of obviously unfair compensation clauses; and that they stipulate a fixed period of service in a prominent position in the master contract, and properly inform consumers of their related ob-ligations. The FTC will also require operators to draw up reasonable operating procedures and dispute resolution mechanisms to handle con-sumers' early terminations of agreements.