FTC Updates 42 Telemarketing Fraud Cases
The agency posted a list of the cases and a summary of each on its Web site, ftc.gov. The announcement came as the FTC prepares to begin active enforcement of sweeping new telemarketing regulations, including the national no-call list, starting Oct. 1.
The list of cases includes commonly cited types of telemarketing fraud, including alleged lottery scams, advance-fee credit card schemes and charity scams. Among the more high-profile cases are the following defendants:
· Efficient Telesales Services Inc., which agreed to a $1.3 million payment to settle a complaint alleging that it offered consumers advanced-fee credit cards for a $199 processing fee but sent them only packages with information on how to apply for credit cards.
· Greeting Cards of America Inc., which faces a complaint alleging that the company defrauded consumers of $3 million in a greeting-card business opportunity.
· Skybiz.com, which agreed to pay $20 million to compensate consumers as a result of a complaint alleging that the company ran an international pyramid scheme based in Tulsa, OK.
· Cross Media Marketing, which paid $350,000 to settle a complaint alleging that one of its business units deceptively marketed magazine subscription packages. The company subsequently entered bankruptcy proceedings and liquidated its assets.
For a list of the case summaries, go to ftc.gov/bcp/conline/edcams/telemarkfraudenforcement/tsrsummary.html.