Angles Communication, a company based in Memphis, TN, is distributing a flyer in Kentucky targeted to consumers who receive Food Stamps. The flyer says:
Get Food Stamps? Then get FREE Phone Service Too! Government Pays For Home Phone Service! 1-877-650-8857 usafreephone.com
CLICK HERE to see a copy of the flyer, which was forwarded to the Better Business Bureau by a Western Kentucky consumer. The consumer wanted to know whether this offer “is legitimate.” In a nutshell, the answer is that, yes, this is a legitimate company. And Angles Communication is offering to provide installation and the first month of service without cost for certain eligible subscribers. However, the flyer does not disclose limitations which apply to this offer as the Better Business Bureau believes it should.
After the first month, consumers may qualify for reduced-rate (but not free) telephone service. For any service following the first month of service, the rate in Kentucky appears to be a minimum of $26.72 per month ($14.99 phone charges, plus taxes and fees that bring the total charge to $26.72) for consumers who qualify for federal and state “lifeline assistance.”
The Better Business Bureau is concerned that this flyer will create a false impression that Food Stamp recipients may qualify for government-paid telephone service. The BBB’s concern is due to the absence of disclosures about limitations that apply to this offer and the broad statement on the flyer that “Government Pays for Home Phone Service!” Disclosures of limitations on the offer appear on the company website and, presumably, such disclosures are made to consumers who call the company's toll free telephone number to enroll by phone.
Based on BBB advertising standards, the Better Business Bureau does not believe disclosure of details later is sufficient to overcome an inaccurate impression created by the flyer itself. BBB has encouraged the company to make adjustments to the flyer. However, the company has not agreed to make such adjustments.
The company’s responses to the Better Business Bureau take the position that the offer as stated on the flyer is not misleading. According to the company, a qualifying customer can switch telephone service to Angles Communication and obtain the first month of phone service without cost. Angles Communication CEO Brian Cox stated in an e-mail on June 22, 2009:
The service is completely free for the first month even including a free hook up which costs over $50 from ATT in many cases. Each month thereafter (the service) is discounted with the federal subsidy and the ad clearly states "if you are on food stamps".
….
Our service is prepaid! People buy 30 days of service at a time. Consider a 30 days block of service our widget. They get it free - it they want another later, they pay for it. This is the model for thousands of companies that do giveaways - do you have articles against this marketing concept?
They get free service. Then they get a letter in the mail that tells them if they want another, they simply pay - no obligations, contracts....hence no scam or bad business.
In response, the BBB repeated its belief that the false impression created by the totality of the advertisement was not overcome by the fact that more complete information is provided elsewhere in the sign-up process.
As of June 30, 2009, the Better Business Bureau has not received confirmation that the flyer is being modified in ways that would remove the potential for a false impression created by the flyer, especially by the statement “Government Pays For Home Phone Service!” The BBB considers this statement, absent an explanation on the flyer of limitations that apply to the offer, to be misleading. You can review all the information available in this article and decide for yourself whether you agree with the BBB’s position or the company’s position.
The consumer who sent the flyer to the BBB indicated that she received it in her mailbox. Other consumers have reported receiving the same flyer as a newspaper insert or through a neighborhood flyer drop.
The Federal Communication Commission offers detailed information about the Lifeline and Link-Up programs, which are intended to make affordable telephone service available for income-eligible consumers. This assistance became available after passage of the Telecommunications Act of 1996. For more information, go to http://www.fcc.gov/cgb/consumerfacts/lllu.html.