FTC Takes ISP to Task Over Telemarketing

Consumer Hotline: The FTC will continue to operate a hotline (202-326-2998) to assist the victims of the web cramming engaged in by the defendants. The FTC’s hotline will advise consumers on what steps to take if they receive a notice from the defendants and what consumers should do to obtain a refund.

Case History: In October 2003, the court entered a temporary restraining order against the defendants, stopping their allegedly illegal conduct. A temporary receiver subsequently took control of the defendants’ assets, and the court entered a preliminary injunction against the defendants on November 21, 2003, prohibiting the unfair and deceptive practices that led to the FTC’s complaint and imposing monitoring and compliance requirements. In the time since, the FTC has worked with the defendants to help defrauded consumers cancel orders for the defendants’ services and obtain refunds. To date, the defendants – who are in bankruptcy – have issued more than $3.6 million in refunds and credits to consumers who have cancelled their services.

The Commission vote approving the issuance of the stipulated final order was 5-0. The order was filed in the U.S. District Court for the Southern District of New York on November 20, 2006. The FTC received assistance in its investigation of this case from the U.S. Small Business Administration, the Better Business Bureau Serving Southeast Florida, the Florida and Missouri Offices of Attorney General, and Verizon and SBC.