FTC Bans Canadian Firms to Settle Business Directory Listings Scam

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Canadian defendants accused of fraudulently selling business directory listings are now banned from the U.S. business directory industry to settle charges brought by the Federal Trade Commission.

The defendants - Datatech Communications Inc., 9102-3127 Quebec Inc., Elias Bakomichalis, Gregory MacNeil and Robert Brewer - have been told to pay $165,000 in consumer redress. They also are subject to a suspended sentence of $9.1 million, which is the total consumer injury suffered.

According to the FTC, the defendants called small U.S. businesses saying they wanted to renew the called company's directory listings when no such relationship existed.

Responding to this scandal, the FTC yesterday debuted a new consumer education brochure called "Business Directory Scams Try to 'Give You the Business.' "

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