The Federal Trade Commission required American Telecom Services, ...
The Federal Trade Commission required American Telecom Services, which sold both traditional and Internet phones bundled with communications services through retailers nationwide, to provide timely rebates, the FTC said. The commission charged the company with deceptive marketing by promising…
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consumers they would receive their rebates within eight weeks of submitting properly completed forms. Offering mail-in rebates ranging in value from $5 to $50 for its “Pay ‘N Talk” program, ATS used third-party fulfillment houses to process and pay rebate requests received from consumers who bought its products. The FTC order prohibited ATS from misrepresenting the time in which any rebate will be mailed and from failing to provide any rebate within the time it specifies -- or within 30 days if no time is specified in the offer. It also prohibited the company from misrepresenting any material terms of any rebate program, including the status of the rebate or reasons for delay in providing a rebate. The order contained record-keeping and reporting provisions designed to ensure compliance.