The Federal Trade Commission announced a settlement yesterday with a Canadian company and its two principals involving allegations of deceptive telemarketing practices.
The FTC contends that Ambus Registry Inc. called U.S. consumers and misrepresented that they had agreed to buy the company's “American Business Registry” and a listing in the directory.
According to the FTC, Ambus trained its telemarketers to use deceptive sales tactics to convince U.S. consumers and businesses that someone in their company had authorized a listing in the directory, as well as to buy the directory itself. The defendants are alleged to have billed the consumers for $299 to $399, the FTC said, and, despite a supposed 30-day trial period, rejected requests for a full refund.
The defendants, Garther Cheung and Sukhraj Singh Chana of Calgary, Alberta, agreed to stop calling U.S. consumers and to suspend collecting on accounts that were established before the FTC filed its lawsuit last month, the commission said.
The FTC worked with the Canadian Competition Bureau and Alberta Government Services in investigating this case and filing the complaint.