NO SHORTAGE OF TELEMARKETING ENFORCEMENT ACTIONS

August 1, 2005

Telemarketers behaving badly better beware!

That's because the Federal Trade Commission is definitely looking out for the industry's bad apples and is ready to make them pay.

The agency issued its ninth quarterly announcement in which the agency’s enforcement efforts against telemarketing fraud and abuse were summarized.

"The quarterly enforcement update lists significant case developments in 22 federal district court cases occurring between May and July 2005," we learned from the FTC press release.
The FTC also provides "a list of enforcement actions involving telemarketing that have seen developments" since Oct. 1, 2002.

There are links to press releases related to each of these actions.

"The Web page now contains information about 165 actions involving the use of the telephone to market goods or services. This information covers cold-call outbound telemarketing, as well as inbound calls generated from advertisements or other solicitations to purchase products or services," the FTC said.

Regarding the recent quarterly enforcement update, it is on the FTC’s Web site at: www.ftc.gov/bcp/conline/edcams/telemarkfraudenforcement/update05jul.htm.

Some of the more interesting headlines from the recent releases appearing on the site include:

* Defendants Who Deceptively Marketed the “Himalayan Diet Breakthrough” Settle FTC Charges: Agree To Pay $400,000 In Consumer Redress.

* Cross Border Con Artist Ordered to Pay $2.9 Million.

* FTC and Law Enforcement Partners Continue Targeting Scammers of Spanish-Speakers.

* FTC Targets Bogus Anti-Aging Claims for Pills and Sprays Promising Human Growth Hormone Benefits: Settlement Provides Up To $20 Million In Consumer Redress.

* Fraudulent “Debt Negotiators” Settle FTC Charges.

* FTC Cracks down on Internet Mall Pyramid Promoters.

* FTC Bans Bogus Operator from Credit Repair Business.

* Court Order Bars Deceptive Investment Pitches.

There have also been some big fish reeled in by the FTC, including Scholastic and Columbia House, as revealed in the following headlines:

* Children’s Book Publisher to Pay $710,000 to Settle Charges it Violated Commission’s Negative Option and Telemarketing Sales Rule: Complaint Alleges Scholastic, Grolier, and Scholastic-at-Home Failed to Adequately Disclose the Terms of Their Direct-to-Home Book Clubs.

* Columbia House Settles FTC Charges of Do Not Call Violations.

By Glenn J. Kalinoski, Executive Editor, Customer Inter@ction Solutions