MISSOURI, 43 OTHER STATES AGREE TO COMBAT 900-NUMBER FRAUD

JACKSON -- Missouri Attorney General William Webster and his counterparts in 43 states have reached agreements with the nation's three major long-distance carriers to combat 900-number consumer fraud.

Webster discussed the agreements briefly prior to a commencement address Wednesday at St. Paul Lutheran School in Jackson.

Missouri along with Kansas, New Jersey and Tennessee was a lead state in drafting the voluntary procedures with American Telephone and Telegraph Company (AT&T), MCI Telecommunications Inc. and Sprint Telemedia.

"These cooperative agreements will help with early detection and prevention of consumer fraud by dishonest 900-prefix telephone number services," Webster said. "These voluntary procedures establish a working relationship between the states and carriers that is unprecedented in the telephone industry.

"The procedures provide a way for us to exchange important information about possibly fraudulent services that are carried on the telephone companies' systems," he added.

For example, if Webster's office finds a 900-number promotion that might be fraudulent, the office first contacts the carrier. The 900-number carrier will then:

Review and investigate the 900-number promotion, and consider whether to terminate services.

20Consider withholding funds that are due to the 900-number sponsor, if allowed under the carrier's contract with the 900-number sponsor.

Upon formal legal request, provide calling information phone number, date and cost of each call for the 900-number promotion in question to the attorneys general.

"In addition to helping the states in our enforcement efforts, the carriers will continue their efforts to review scripts and advertisements of 900 numbers operated on their lines," Webster said. "Also, the carriers have the option of blocking calls that originate from specific area codes within a state to prevent unsuspecting consumers from calling a 900-number that is found to be fraudulent."

Webster said that most recently, the agreements resulted in a restraining order against a Texas company known as Allied Marketing or Sweepstakes Clearinghouse.

"This company allegedly enticed consumers to call a 900 number by sending post cards which promised special awards," he said. "Instead of valuable prizes, consumers in this case received discount certificates good only for purchases made from the Sweepstakes Clearinghouse catalog."