FTC Accuses Telemarketer of Violating Settlement

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The Federal Trade Commission said yesterday that it has filed charges against an Oklahoma telemarketing group accused of violating the terms of an October 1996 settlement barring illegal billing for magazine subscriptions.


In papers filed in U.S. District Court, the FTC alleged that the defendants violated the permanent injunction that prohibits the firms from misrepresenting magazine subscription packages to consumers.


In part, the document states, "The FTC charges that the defendants have continued to: misrepresent the cost and duration of subscriptions; misrepresent consumers' ability to cancel their subscriptions; misrepresent enforceability of the subscription package agreements; misrepresent the need for consumers' account information; and charge consumers without authorization or agreement."


The motion seeking a civil contempt ruling names Diversified Marketing Services Inc.; H.G. Kuykendall Jr.; H.G. Kuykendall Sr.; C.H. Kuykendall; National Marketing Service Inc.; NPC Corporation of the Midwest; and Magazine Club Billing Service. All the defendants are based in Oklahoma City.


The agency asked that the defendants be cited for contempt of court, barred from the telemarketing business and ordered to pay $51 million in consumer redress.


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