Specifically, the FTC's complaint alleges that the defendants:
* Deceptively misrepresent, in their advertising, that a "reading" will be provided at no cost; * Through their agents, misrepresent the cost of the calls by claiming that consumers' free minutes have not expired, that the consumer had been awarded additional free time, or that the consumer will not be charged while on hold; * Falsely represent that consumers are legally required to pay for services even though, in many instances, no such legal obligation exists; and * Engages in unfair practices by frequently and repeatedly calling consumers, including consumers who had previously indicated they did not wish to receive such calls, and by failing to provide consumers with a reasonable method to stop such calls.
In addition, the complaint alleges that the defendants violated the FTC's 900 Number Rule by:
* Failing to make required cost disclosures in their advertisements, and diluting the disclosures that they do make with contradictory information; and * Threatening to report adverse information to credit reporting bureaus without first conducting an investigation of billing errors.
The FTC is seeking a temporary restraining order against the defendants.
The Commission vote to authorize staff to file the complaint was 5-0. The complaint was filed in U.S. District Court for the Southern District of Florida, in Fort Lauderdale, on February 13, 2002.
NOTE: The Commission files a complaint when it has "reason to believe" that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendant has actually violated the law. The case will be decided by the court.
Copies of the complaint are available from the FTC's Web site at http://www.ftc.gov and also from the FTC's Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint, or to get free information on any of 150 consumer topics, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at http://www.ftc.gov. The FTC enters Internet, telemarketing, identity theft and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
Media Contact: Cathy MacFarlane or Brenda Mack Office of Public Affairs 202-326-3657 or 202-326-2182 Staff Contact: Eileen Harrington or James Kohm Bureau of Consumer Protection 202-326-3128 or 202-326-2640
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timeasmymeasure
Re: miss cleo charged with phone fraud...
Date: 2010-08-16 04:09 pm (UTC)* Deceptively misrepresent, in their advertising, that a "reading" will be provided at no cost;
* Through their agents, misrepresent the cost of the calls by claiming that consumers' free minutes have not expired, that the consumer had been awarded additional free time, or that the consumer will not be charged while on hold;
* Falsely represent that consumers are legally required to pay for services even though, in many instances, no such legal obligation exists; and
* Engages in unfair practices by frequently and repeatedly calling consumers, including consumers who had previously indicated they did not wish to receive such calls, and by failing to provide consumers with a reasonable method to stop such calls.
In addition, the complaint alleges that the defendants violated the FTC's 900 Number Rule by:
* Failing to make required cost disclosures in their advertisements, and diluting the disclosures that they do make with contradictory information; and
* Threatening to report adverse information to credit reporting bureaus without first conducting an investigation of billing errors.
The FTC is seeking a temporary restraining order against the defendants.
The Commission vote to authorize staff to file the complaint was 5-0. The complaint was filed in U.S. District Court for the Southern District of Florida, in Fort Lauderdale, on February 13, 2002.
NOTE: The Commission files a complaint when it has "reason to believe" that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendant has actually violated the law. The case will be decided by the court.
Copies of the complaint are available from the FTC's Web site at http://www.ftc.gov and also from the FTC's Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint, or to get free information on any of 150 consumer topics, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at http://www.ftc.gov. The FTC enters Internet, telemarketing, identity theft and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
Media Contact:
Cathy MacFarlane or Brenda Mack
Office of Public Affairs
202-326-3657 or 202-326-2182
Staff Contact:
Eileen Harrington or James Kohm
Bureau of Consumer Protection
202-326-3128 or 202-326-2640
(FTC File No. 012 3084)
(Civil Action No.: 02-60226 CIV GOLD)