FTC warns consumers about 'unlimited' plans, probing complaints
The Fair Trading Commission (FTC) is urging consumers to be particularly vigilant when the word ‘unlimited’ is used in advertisements, and are encouraged to obtain full information from their telecommunications service providers on the details of calling plans prior to purchase.
The FTC said it has received several complaints regarding restrictions placed on unlimited calling plans by telecommunication service providers and has launched investigations pursuant to Section 37 of the Fair Competition Act, which deals with misleading advertising.
In particular, the FTC said it will be treating advertisements promoting calling plans which are capped or otherwise qualified, and which are referred to as ‘unlimited’ or any other word which may convey a similar meaning, as being misleading or likely to mislead the public.
The commission said that the complaints from the public, which concern the unlimited calling, text and data plans being advertised, would be vigorously pursued as breaches of the Fair Competition Act.