The Prepaid Press - APPPA Completes Disclosure Standards Draft

05/24/2013

APPPA Completes Disclosure Standards Draft

Prepaid Phonecall Association Set to Publish Standards

WASHINGTON, DC (July 30, 2012) The American PrePaid Phonecall Association, APPPA, has completed a first draft of industry standards for prepaid phonecall products. The standards are designed to protect the interest of consumers by establishing a set of minimum standards for the disclosure of rates and terms for prepaid calling products.

"It is important to have well thought out standards for all the details regarding how prepaid calling product providers disclose the terms, conditions and rates of their products to consumers," said Abe Greenfield, of DollarPhone, an APPPA founding member. "A lack of clear disclosure standards has been the main source of consumer concern and APPPA has now developed a detailed standard to protect consumers."

Greenfield also said that the APPPA board will review the proposed standard at its next Board meeting in early August. The Standards specify how disclosures on the prepaid phonecall products are made to consumers, and how consumers are informed of balances and usage information, voice prompts, fees and advertising.

"Much of the frustration expressed by consumers and the concerns of government regulators involves disclosures," said Greenfield. "This Standard will clearly establish the minimum standard for disclosure." "We have been working on these standards since APPPA was formed earlier this year," said Gene Retske, executive director of APPPA. "Coming up with a clear set of standards is a vital step in our quest to protect consumer interests and assure products that can be understood and trusted." Retske also said that after the APPPA Board review, the Standards will then be reviewed with interested parties and consumer groups to get their input before the Standards are finalized.

Any parties interested in commenting on the Standards should contact executive director Gene Retske, gene.retske@apppa.us.

Source: APPPA