Canadian Telemarketer to Pay Fine After State Investigation

Share this content:
The Pennsylvania attorney general's office yesterday said a Canadian telemarketing firm has agreed to pay the state $7,500 to settle claims that it had used deceptive tactics to market a credit card protection program to consumers in the state.


American Fraud Watch Services Inc., White Rock, British Columbia, also agreed to stop telemarketing to Pennsylvania consumers and to provide refunds to consumers who request cancellation of the service.


According to investigators, American Fraud Watch conducted a telemarketing campaign in which it called consumers to offer them a credit card protection program for $299, which the company claimed would protect consumers against unauthorized charges if their credit cards were lost or stolen.


The investigators claim that the company lied to consumers by telling them that they would be held responsible for charges made to a stolen credit card if they did not report it stolen within 48 hours. Under federal law, consumers cannot be held liable for more than $50 of any unauthorized charge, according to the attorney general's office.


The company also was accused of failing to clearly identify itself when it called customers, charging customers immediately even though they agreed to a 30-day free trial, failing to tell consumers that that they had the right to cancel within three days, conducting telemarketing without registering and securing a bond, and failing to state the purpose of the call.


American Fraud Watch could not be reached for comment.


The $7,500 settlement included $5,000 in civic penalties and $2,500 for the cost of the investigation.
close

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

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