Feds Crack Down on Pre-Registration Scams for National "Do Not Call" List

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WASHINGTON, May 8, 2003 -- Two Internet sites claiming that they can "pre-register" consumers with the Federal Trade Commission's National telemarketing "Do Not Call" Registry are the focus of a federal district court complaint filed by the FTC.

The Commission is seeking a temporary restraining order to stop immediately the deceptive claims made on Free Do Not Call List.org (FDCL.org) and National Do Not Call List.US (NDNCL.US), two Internet Web sites operated from Novato, California.

The FTC's registry will accept consumer registrations beginning this summer. Anyone who want to place their telephone number on the list must register from their own phone or through a federal government Web site. Registration will be free.

"These scam artists are seizing on the public's interest in the 'Do Not Call' Registry," said Howard Beales, director of the FTC's Bureau of Consumer Protection. "But the law doesn't allow third party profiteers to be in the do not call business."

The Commission filed the complaint against Ken Chase, doing business as Free Do Not Call List.org and National Do Not Call List.US. According to the Commission's complaint, consumers who respond to Chase's claims and attempt to pre-register for the FTC's "Do Not Call" Registry receive an e-mail stating that their pre-registration has been received and that their information will been transmitted to the FTC as soon as the list becomes available. The Free Do No Call List Web site also allegedly directs consumers who want to stop receiving telemarketing calls to what it describes as "the Active list" at National Do Not Call List.US.

Once there, the complaint alleges that consumers are told that by subscribing to the service they can stop receiving such calls, as well as unsolicited faxes and junk mail. The cost for the service is between $9.99 and $17.99 per year. This site allegedly also falsely claims that it can place consumers on the FTC's "Do Not Call" registry.

The complaint charges Chase with deceptively representing to consumers that the FDNCL.org and NDNCL.US Web sites can arrange for consumers' telephone numbers to be placed on the Commission's "Do Not Call" Registry, in violation of Section 5 of the FTC Act.

In addition, the Commission states that the defendants' claims that the Web sites can be used to sign up for the registry are likely to cause consumers to provide their personal identifying information, and in the case of NDNCL.US, to subscribe to its service. Finally, it is possible that consumers who sign up via one of the two Web sites would reasonably think their names would be included in the national registry and that they would not need to sign up on their own, according to the FTC.

Beginning in July 2003, consumers will be able to put their telephone numbers on the national registry, which telemarketers subsequently will be required to access. When registration opens in July, consumers can register for free in two ways: online or by telephone. The FTC will announce the Web site URL for online registration and the toll-free number in July. As of October, it will be illegal for most telemarketers to call a number listed on the registry.

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