Attorney General's News Release

July 20, 2000

MCI ads for "5¢ everyday" calling plan are deceptive and misleading on extra charges and limits, Nixon says

Jefferson City, Mo. — Attorney General Jay Nixon today filed a lawsuit against long-distance giant Worldcom Inc., formerly known as MCI Worldcom Inc., saying the company's ads were deceptive and misleading.

Nixon's lawsuit states that consumers have switched their long-distance service to MCI as a result of the deceptive ads, but have ended up with substantially different calling plans than those advertised and have paid higher charges and rates than those advertised.

"MCI has used one of the most recognizable figures in the world, Michael Jordan, to advertise its 'five cents everyday' calling plan on television," Nixon said. "Rather than having Mr. Jordan banter with Bugs Bunny, MCI should have him look into the camera and tell consumers about the monthly fees and charges associated with the plan, and that the plan applies only to calls made outside the state on evenings and weekends.

"MCI discloses only some of that information and only in small type across the television screen, generally at the same time there is a lot of activity on the screen by a cartoon character," Nixon said. "It's not difficult to see that an image of Wile E. Coyote running across the screen would command more attention than several lines of dense type explaining terms and conditions of the plan."

Nixon said MCI's misleading practices also extended to telemarketing calls made by the company. Telemarketers failed to tell consumers about the time and geographical restrictions on calls, Nixon said, and also omitted information about monthly recurring charges, the monthly minimum charge, the carrier access charge and federal universal service fee, and the fact there was a surcharge on all calling card calls.

The lawsuit, filed in St. Louis City Circuit Court, seeks a permanent injunction to prevent MCI from making misleading or deceptive claims in its marketing practices or from omitting information regarding charges to consumers. The lawsuit also asks the court to award appropriate penalties and costs to the state.

"There's only one message we want to send MCI regarding their misleading ads," Nixon said. "That's all, folks."

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818