LV telecom firm sued, appeals fine

Tuesday, May 8, 2001 | 10:43 a.m.

NOS Communications, a Las Vegas-based telecommunications firm, has been hit with four lawsuits alleging the company defrauded some customers with deceptive advertising.

Las Vegas-based law firm Albright, Stoddard, Warnich & Albright filed the suits on behalf of Olga Fisher of Fisher Enterprises, Kids International Inc., Hudson Capital Partners and Omni Pure Filter Co.

U.S. regulators last month fined the company and a subsidiary $1 million for similar actions. The Federal Communications Commission said it received more than 900 complaints since 1997 against NOS and its Los Angeles-based subsidiary Affinity Networks about an alleged "bait and switch" marketing scheme.

NOS Communications lawyer Danny Adams said the company has not paid the fine. Instead, it filed an appeal to the FCC Wednesday denying the charges.

"The FCC is incorrect in its conclusion that our disclosure to customers have been inadequate," Adams said. "The scripts for telemarketers have made it clear that the 'cents-per-minute rate' was a promotional rate."

Following the two-month promotional period, customers were billed based on a different complex formula, based on cents per "total call unit." The total call unit often resulted in rates that were twice the advertised cents-per-minute rate, the FCC alleges.

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