NEWS    RECALLS    COMPLAINT FORM    SCAM ALERTS   RESOURCES  
Small Claims Guide   Class Actions   Lemon Laws   FAQ   Newsletters  


Complain about a product or service

Automotive    Education    Employment    Electronics    Family    Finance    Health    Homeowners    Pets    Shopping    Travel   



NEWS   Latest |  Archives |  Auto |  Cells, etc. |  Computers |  Financial |  Health |  Homeowners |  Parents |  Privacy |  Scams |  Seniors |  Travel

Canadian Telemarketers Ordered to Pay $5 Million

Consumers never received the goods they were promised





May 5, 2008


Read More Scam Alerts ...

A U.S. District Court judge in Illinois has ordered a telemarketing company based in Ontario, Canada to pay $5 million for defrauding U.S. consumers.

Under the terms of the final order and judgment, the defendants – collectively known as Pacific Liberty – are barred from violating the Federal Trade Commission Act and the Commission's Telemarketing Sales Rule (TSR). The $5 million judgment represents estimated losses suffered by consumers.

The FTC's complaint charged the defendants with using outbound telemarketing to call U.S. consumers. For an advance fee of $319, which they electronically debited from the consumers' bank accounts, the defendants promised that they could deliver Visa or MasterCard credit cards, along with free gifts such as cell phones.

No consumers who paid the money received either credit cards or "complimentary" gifts.

Instead, consumers received only a "member benefits" package with items such as booklets on how to improve their creditworthiness. Some also received a "member merchandise" card valid only for purchases from a catalog supplied by the defendants.

The defendants also called consumers offering them a brand-name personal computer if they agreed to have a fee debited from their bank account. No one received the promised computers. Instead, they received certificates purportedly redeemable for off-brand computers, but the consumers first had to pay additional fees. The FTC is not aware of any consumer who ultimately obtained a computer.

The court order and final judgment found that the defendants failed to respond to an FTC motion for summary judgment, as well as to other information requests. According to the order, the commission submitted considerable additional evidence to support the allegations in the complaint, including that the defendants engaged in deceptive acts or practices, and that they are accordingly liable for them.

Specifically, the order states that the defendants:

1) misrepresented that after paying a fee, consumers would, or were highly likely to, receive an unsecured major credit card such as a Visa or Mastercard; and

2) requested and received a fee from consumers before arranging to provide them with such a card.

In addition, the court found the defendants or their employees misrepresented or failed to disclose a variety of information to consumers, including that they would receive a specific brand-name computer and the total cost to buy and receive the computer.

More Scam Alerts ...

Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.



Asterpix

CONSUMER NEWS

SAFETY RECALLS

LATEST RATES

PRINT, ETC.

Print This

Email This


FREE CONSUMER NEWSLETTERS

The Daily Consumer
Afternoons M-F

Sign up now!


Consumer News & Alerts
Every Sunday

Sign up now!

MOST-VIEWED PAGES

NEW COMPLAINTS

Hey there! ConsumerAffairs.com is using Twitter.
Twitter is a free service that lets you keep in touch throughout the day. Join today to start receiving ConsumerAffairs.com's updates.

Back to the top |

Advertisement


Custom Search
AUTOMOTIVE
• Dealers
• Manufacturers
• Service
• Extended Warranties
• Lemon Laws
• Recalls
• Tires
• Transporters

FAMILY
• Aging
• Children, Parenting
• Recalls
• Dating
• Education
• Entertainment
• Pets
• Weddings
FINANCE
• Annuities
• Banks
• Credit Cards
• Debt Collection
• Debt Counseling
• Insurance
• Investing
• Loans
• Mortgages
• Payday Loans
• Student Loans
• Tax Prep

HEALTH
• Doctors
• Drugs, Pharmacies
• Health Clubs
• Hearing Care
• Hospitals
• Nursing Homes
• Nutrition, Diets
• Vision Care
• Weight Loss
HOMEOWNERS & RENTERS
• Appliances
• Cookware
• Furniture
• Home Improvements
• Lawn & Garden
• Movers
• Pools & Spas
• Realtors, Rental Agents
• Recalls
• Utilities

ELECTRONICS
• Cable TV/DBS
• Cameras
• Cell Phones
• Computers
• Home Electronics
• Internet Access
• Local Phone Service
• Long Distance
• VoIP
SHOPPING
• In-Home
• Online
• Retail Stores
• Sporting Goods
• Supermarkets
• Telemarketers

TRAVEL
• Airlines
• Bus Lines
• Car Rental
• Cruises
• Hotels
• Travel Agents
• Trains

RESOURCES
• Class Actions
• Complaint Form
• Small Claims Guide
• Lemon Laws
CONSUMER NEWS
• Latest News
• Automotive
• Telecom
• Financial
• Health
• Homeowners
• Scams
• Seniors
• Travel
• More ...

RECALLS
• Automotive
• Children's Products
• Drugs
• Food
• Household Products
• Sporting Goods

ABOUT US
• FAQ
• Privacy Policy
• Advertise With Us
• Newsroom
• Syndication
• Terms of Use

Terms of Use Your use of this site constitutes acceptance of the Terms of Use

Advertisements on this site are placed and controlled by outside advertising networks. ConsumerAffairs.com does not evaluate or endorse the products and services advertised. See the FAQ for more information.

Company Response Welcome If complaints about your company appear on our site, we welcome your response. Please see the Response Form for more information.

For more information, see the FAQ and privacy policy. The information on this Web site is general in nature and is not intended as a substitute for competent legal advice.  ConsumerAffairs.com Inc. makes no representation as to the accuracy of the information herein provided and assumes no liability for any damages or loss arising from the use thereof. 

Copyright © 2003-2009 ConsumerAffairs.com Inc.  All Rights Reserved.    The contents of this site may not be republished, reprinted, rewritten or recirculated without written permission.