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.


Loading links....

Sign up to our newsletters

Company of the Week

Since 1985, Melissa Data 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 Data 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 »

DMN's 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