Attorney General's News Release

February 8, 1996

Approved agreement between Nixon, United Telephone to provide 20,000 customers with prepaid calling cards

Jefferson City, Mo. — Some 20,000 United Telephone Company customers in Missouri will soon receive prepaid long-distance calling cards worth about $670,000 in all, thanks to an agreement between Attorney General Jay Nixon and United Telephone Company that was approved today by a federal court in Jefferson City.

Each eligible United Telephone customer will receive a long-distance card directly through the mail from the telephone company, most within 60 days. Most cards will be worth about $50 in long-distance calls, Nixon said. The card will be good for long-distance calls anywhere in the United States at a rate of $.30 per minute for a two-year period after it is issued.

The agreement resolves allegations by Nixon that United Telephone violated state and federal antitrust laws and the Missouri Merchandising Practices Act in its marketing of RepairCare, an inside wire maintenance plan for residential customers.

United Telephone began marketing RepairCare to customers for an additional monthly charge in early 1987 through a negative option solicitation; that is, if customers did not inform United Telephone that they did not want RepairCare, it was added to their bills without their affirmative consent. Nixon said that billing these customers for RepairCare was an unfair practice and anticompetitive.

“This settlement sends a clear message that consumers shouldn't be billed for a service they didn't agree to take,” Nixon said.

United Telephone will send the cards to those customers whose RepairCare coverage resulted from the negative option solicitation in 1987 and who paid for RepairCare on any United Telephone bill between Nov. 1, 1992 and Oct. 31, 1995.

In addition to the calling cards, United Telephone will pay to the $62,000 to the Missouri Antitrust Revolving Fund and $5,000 to the Missouri Merchandising Practices Revolving Fund.

United Telephone Company serves 80 communities in Missouri. Among the larger cities it serves are Jefferson City, Maryville, Rolla, Warrensburg, Lebanon and Harrisonville.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818