FTC Charges Directory Marketer

Share this content:
The Federal Trade Commission obtained a court order to freeze the assets of Datatech Communications, a Quebec-based company alleged to have used telemarketing to trick U.S. small businesses into buying business directory listings, the FTC said yesterday.


According to the complaint, Datatech callers failed to disclose their identity or falsely claimed to be affiliated with the Yellow Pages or a local telephone company. The callers also falsely claimed that the call's purpose was to renew a directory listing, when the business had never been listed, the FTC said.


Datatech charged businesses $295.95 for a listing in its directory and a copy of the AT&T National Business Buyers Guide plus shipping and handling, the FTC said. In many cases, Datatech billed businesses even if they refused the offer, according to the complaint.


When businesses refused the offer, Datatech callers assured them that they could cancel the listing without financial obligation, the FTC said. But those who tried to cancel learned that they must pay a cancellation fee ranging from $49 to $159, according to the FTC.


If businesses refused to pay, Datatech referred their accounts to collection agencies and threatened to damage their credit, the FTC said. A federal judge in U.S. District Court in Chicago issued a temporary restraining order and asset freeze against the company Sept. 8.


close

Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above