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


Complain about a product or service

Automotive    Education    Employment    Electronics    Family    Finance    Health    Homeowners    Insurance    Pets    Shopping    Travel     Print This     Email This    



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

Simple.Net Sued for Use of Activation Checks

Sent out small checks that were actually contracts





July 16, 2008

Simple.Net
Simple.Net Sued for Use of Activation Checks
Crammers Settle FTC Charges
---
More Scam Alerts ...

If a company sends you a check for a couple of bucks, for no reason at all, don't think they're just being generous. Cash the check, and you could find yourself signed up for a service you don't really want.

The state of Oregon has filed a civil racketeering lawsuit against an Arizona Internet service provider, charging that it attempted to dupe thousands of businesses and non-profit organizations into depositing negotiable checks that the company claimed were actual contracts for Internet services.

Named in the lawsuit is Simple.net, Inc. of Mesa, Arizona, formerly Dial-Up Services, Inc. doing business as Simple.net.

In the lawsuit, the Oregon Department of Justice (DOJ) contends that Simple.net, from January 1, 2003 through November 2005, mailed over 195,000 solicitations into the state containing "activation" checks of under $3.35, which when cashed according to Simple.net created a contract to pay a monthly charge of $l6.95 or more for dial up internet access.

The alleged victims deposited the checks thinking they were small refunds or payments on small debts, not a contract for services. DOJ claims the company continued charging the recipient's local phone bill or through a draw on a checking account even after the marketing practices had stopped. Most customers never used the Internet service or even knew they had purchased it.

"This is the fifth major investigation that the Department has undertaken concerning the use of 'activation' checks," Oregon Attorney General Hardy Myers said. "We will continue to be a leader in efforts to protect small businesses and non-profits from deceptive solicitations for services such as Internet access and yellow page advertising."

The lawsuit asks for a civil penalty of $250,000, attorney fees and investigative costs and the forfeiture of all monies and property derived from or used in the alleged illegal conduct. The suit also requests restitution for all victims, who paid the defendant for unwanted and unused Internet access billed.

In addition, the lawsuit seeks a permanent injunction prohibiting the company from using "activation" checks to solicit business in Oregon.

Simple.net, meanwhile, has filed a lawsuit in federal district court in Arizona against the states of Oregon, Missouri, North Dakota, and Idaho, asking that the states' investigation should be terminated because the company had entered into a court settlement with the Federal Trade Commission in 2001 about its use of "activation" checks. Simple.net's suit against the states was dismissed for lack of jurisdiction, but is on appeal.

Of the group of 30 states, Idaho and North Dakota are litigating with Simple.net over its alleged failure to provide investigative discovery and Missouri has sued the company under its consumer protection law; that lawsuit is pending.

FTC action

In 2001, the Federal Trade Commission filed a request for a permanent injunction to bar the company's alleged misrepresentations of rebate checks and require them to send customers who signed up for their service confirmation notices giving the consumers the opportunity to cancel and receive a refund.

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.

Share

Follow us on Twitter.

FREE CONSUMER NEWSLETTERS

The Daily Consumer
Afternoons M-F

Sign up now!


Consumer News & Alerts
Every Sunday

Sign up now!





CONSUMER NEWS

SAFETY RECALLS

LATEST RATES

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
HOUSE & HOME
• 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.