The FCC warned long-distance phone customers.
Consumers should be wary of long-distance telephone companies that sell unlimited flat-rate service through “pyramid” marketing schemes, the Federal Communications Commission said. The agency warned that buyers might lose their money or get poor service in the multilevel marketing plan, which offers customers commissions for selling the service to other customers. “Persons at the lowest level of the pyramid, the later entrants, earn less and frequently are unable to enjoy the promised benefits,” the FCC said. The FCC has received inquiries about pyramid plans in Wisconsin, California, Kansas, North Dakota and Alabama.
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