States Settle with New Access

June 7, 2004
In a ten-state settlement, New Access LLC, a reseller of local and long-distance phone services, has agreed to halt misleading telemarketing campaigns.

"Consumers deserve protection from deceptive telemarketing, particularly with regard to telephone service," Michigan Attorney General Mike Cox said. "This settlement is a significant victory in the fight to ensure that companies adhere to fair and honest business practices."

New Access allegedly deceived consumers by switching their telephone service without consent and misrepresenting the actual price of its services, its affiliation with a consumer’s current phone service provider and the savings consumers could realize if they switched to New Access. The company denied the allegations but cooperated in reaching a settlement.

Under the agreement, New Access will credit more than $1 million to former customers and will establish a $250,000 trust fund for additional claims, to be supplemented if necessary. The company will pay the investigating states $750,000 for penalties, attorney’s fees and costs.

New Access cannot engage in deceptive telemarketing practices and must provide new customers with live, toll-free customer service, clearly disclose its service costs during telemarketing calls, obtain authorization when adding features to a customer’s service and implement a year-long nationwide system for recording solicitation calls.

"This case should stand as a warning to unscrupulous telecommunication providers that high pressure tactics, phone slamming, and deceptive practices will not be tolerated." Cox stated. "I urge consumers who believe they were deceived by New Access to immediately file a claim."

Participating in this settlement with Michigan are Minnesota, Colorado, Ohio, Montana, Nebraska, North Dakota, Iowa, Texas and Wisconsin.

Consumers who have filed complaints against New Access or who do so within 90 days of the settlement are eligible for restitution. For information on filing a claim, residents of the ten states should contact their Attorney General's office.

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