Bell Firms Told to Halt Credit Card Ads

The Justice Department, citing potentially misleading advertising, ordered the seven regional Bell telephone companies to stop promoting their credit cards for long distance calling, a spokesman said today.

In a letter to the companies, Charles Rule, an acting assistant attorney general, said the agency is investigating the popular calling cards because the credit system “discriminates in favor of AT&T;” by using the firm’s vast communications network.

Rule said advertising for the cards “may mislead” customers of the regional firms by neglecting to mention the American Telephone & Telegraph Co. connection.

The seven regional companies, commonly called “Baby Bells,” were created in 1984 with the dismantling of AT&T.; Since the breakup, AT&T; and the regional companies have issued cards with the same customer identification number.

Calls made on either card are routed over the AT&T; network--even if a regional firm’s customer subscribes to another communications company for long distance service.

As a result, the Justice Department ordered the regional companies to “immediately halt” promoting the cards and advise customers that if they make long distance calls using the credit cards, the calls will be carried by AT&T.;

Rule’s letter, however, noted that the regional companies are developing systems that would allow credit card customers to charge calls to long distance companies other than AT&T; in about two years.