McHOSE BILL CALLS FOR FULL DISCLOSURE
FOR PREPAID PHONE CARDS

Legislation co-sponsored by Assemblywoman Alison Littell McHose, which requires disclosure of the terms, conditions and limitations of prepaid telephone calling cards, was approved today by the Assembly Consumer Affairs Committee."This legislation is another effort to stem the tide of consumer fraud in New Jersey," said McHose, R-Sussex, Hunterdon and Morris. "Have you ever attempted to purchase a prepaid phone card? All too often, it's incredibly confusing. People often buy them thinking they can be used anywhere at any time only to find out there are a host of limitations. This bill is intended to make sure that consumers get exactly what they are expecting and paying for."

The bill, A-1361, would make it unlawful for a person or business to sell a prepaid telephone calling card in New Jersey unless all terms, conditions and limitations are printed on the card or its packaging so that the purchaser can read them prior to purchase. Information must include whether the phone card is intended specifically for domestic or international use, a toll-free customer service number consumers may call for information on international rates or other rate information, and the length of calling time remaining on the card.

Failure to comply under the Consumer Fraud Act would be punishable by a fine of not more than $10,000 for a first offense and not more than $20,000 for subsequent offenses. In addition, the injured party may be awarded punitive damages.

The bill now heads to the full Assembly for consideration.

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For more information, contact:
Assemblywoman Alison Littell McHose/973-726-0954
Assembly Republican Office/609-292-5339