Cross Media Denies FTC Telemarketing Charges

Share this article:
Cross Media Marketing Corp. issued a statement yesterday saying that its magazine division is under investigation by the Federal Trade Commission. In the same statement, Cross Media denied the charges -- that its magazine division had violated telemarketing regulations.


It is unclear why Cross Media made the announcement, and FTC officials were not immediately available for comment. The company said the FTC had charged the company on Tuesday with violating the Telephone Sales Rule and the Federal Trade Commission Act. The nature of the charges were not specified.


According to Cross Media, the FTC also said Cross Media had broken an agreement made in 1996 by Direct Sales International, which the company bought in January 2000. Without admitting wrongdoing, Direct Sales made the agreement to settle charges that it misrepresented costs and conditions of magazine subscriptions and charged consumer bank accounts without authorization.


Cross Media said it verifies and records all magazine subscription agreements made by phone and is reviewing those records. The company said it has found that in some of the consumer complaints cited by the FTC, consumers had never been Cross Media customers, while in other cases consumers had asked for and received refunds.


When it bought Direct Sales, Cross Media changed the company's name to Media Outsourcing Inc.


Share this article:
close

Next Article in News

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

News Byte: Comcast Expanding Global Ad Delivery Through Partnership

News Byte: Comcast Expanding Global Ad Delivery Through ...

Through a partnership with Adstream , Comcast's AdDelivery Service expands its footprint across the globe.

40 Under 40 2014: Nominations Are Now Open!

40 Under 40 2014: Nominations Are Now Open!

It's time to nominate the 2014 crop of young marketing luminaries for Direct Marketing News's 40 Under 40 Awards. The deadline is Friday, June 6, 2014.

News Byte: MediaCrossing Partners with ASL Marketing on Youth Marketing Tool

News Byte: MediaCrossing Partners with ASL Marketing on ...

The digital media trading firm and marketing database company aim to help marketers target 13 to 34 year olds.