Scammers Stopped! FTC Halts Massive Cramming Scam That Took in $19 Million
“A U.S. district court judge has ordered a halt to the illegal practices of an Internet services company that crammed unauthorized charges onto the telephone bills of thousands of consumers and small businesses for services they never agreed to buy. At trial the Federal Trade Commission will ask the court to halt the practices permanently and force the defendants to give up their ill-gotten gains.
The FTC charged that Inc21 and its affiliated companies sold Internet services, including Web site design services, Web site hosting, Internet directory listings, search-engine advertising and Internet-based faxing, for charges ranging from $12.95 to $39.95 a month.
The FTC alleged that the defendants hired off-shore telemarketers to call prospective clients. Sometimes the telemarketers offered a free trial, without explaining that consumers would have to take certain steps to avoid charges. In other cases the telemarketers said they simply were calling to verify their business contact information.”
Read the entire press release at the Federal Trade Commission.