News Release

For Immediate Release:
April 21, 2008
Contact: Richard Garcia
Office: (323) 201-1261
Bill To Require Calling Cards To Provide Full Disclosure To California Consumers

SACRAMENTO, California – California State Assemblyman Tony Mendoza (D-Norwalk) moved closer to providing consumers with detailed information on the costs and fees they pay for when purchasing calling cards.  Passing with a 7-2 vote in the Assembly’s Business and Professions Committee, Assemblyman Mendoza’s bill AB 2136 now moves to the Assembly’s Appropriations Committee for a vote.

Many Californians have opted to use prepaid calling cards for a variety of reasons ranging from a method of controlling personal spending costs to placing calls to family members in other states and countries as a result of not having or being able to afford a long distance carrier.

AB 2136 would require distributors and vendors of prepaid calling cards to print the total cost a consumer can expect to pay on the advertisement of the product.  AB 2136 would establish in essence the communications industry’s “Truth in Pricing” policy for consumers.

“Compared to land line and cell phone services, calling cards often offer the consumer the cheapest means of keeping in touch with family and friends abroad,” said Assemblyman Mendoza. “For instance, calling cards have become the means of communication for many immigrants.  Unfortunately, some calling companies have exploited this dependency by advertising rates that are misleading and in some cases flat out false.” 

Many retailers hang posters in their stores advertising rates to various countries.  Unfortunately, these posters often remain on the wall for long periods of time and contain outdated and misleading    information.  This bill will prohibit a retail vendor from publicly displaying any information on calling card rates or charges that have expired.

In today’s world of economic pressures consumers need to be fully informed on what they are paying for in order to make sound fiscal decisions for them and their families.  AB 2136 aims to assist with a part of that process.

Assemblyman Tony Mendoza is an educator that proudly represents the communities of Norwalk, Artesia, Cerritos, Hawaiian Gardens, Buena Park, Santa Fe Springs and parts of Lakewood and Whittier. The Assemblyman was first elected to the State Assembly in November 2006 and currently serves as a member of the Assembly’s Banking and Finance, Elections and Redistricting and Rules committees.

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