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Missouri Says "Do Not Call" Means Do Not Call

Texas clothing donor to pay $75,000 for unwanted phone solicits

November 6, 2008

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A Texas business that routinely telephoned Missouri consumers who had asked not to be called in its solicitations will pay $75,000 to the state and develop a series of policies and procedures to ensure further compliance with state consumer protection laws.

Attorney General Jay Nixon reached the assurance of voluntary compliance with Merchandise Pick-Up Service, Inc. of Houston, which does business as Charity Clothing; and its owner, Richard Ferrer-Westrop.

According to Nixon, the Attorney General's Office received complaints from consumers who were repeatedly contacted by Charity Clothing, even after some of the consumers told the defendants to stop calling them. Despite its non-profit sounding name, Charity Clothing is in the business of soliciting, for profit, donations of clothes and other merchandise on behalf of third-party entities.

Under the agreement, the defendants will establish, implement and maintain a number of policies and procedures to ensure future compliance with state consumer protection laws, including:

• Providing the Attorney General's Office with a detailed, written description of all policies and procedures to ensure compliance with the law;

• Instituting a training program for all its employees who engage in telephone solicitation with instruction in customer relations, etiquette, company policies and compliance with state law;

• Maintaining detailed records that prove the defendants are in compliance with all state and federal consumer protection laws; and Conducting reasonable random monitoring of its employees to ensure they are complying with state and federal consumer protection laws.

The defendants also are also required to make a payment of $75,000 to the state as part of the agreement. In addition, the defendants agree that any violation of the agreement may result in contempt of court proceedings and civil penalties of up to $2,000 per violation, and up to $5,000 for any future knowing violation of Missouri consumers' protection laws.

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