FTC v. Interbill Ltd., et al., 2:06-CV-01644-JCM-PAL (D. Nev., filed Dec. 26, 2006)
FTC Sues Payment Processor That Took Millions From Consumers’ Bank Accounts Without Their Knowledge
A payment processor violated federal law when it debited, or tried to debit, more than $9.9 million from consumers’ bank accounts – at $139 each – without their approval, according to the Federal Trade Commission.
[TXT]
FTC v. Global Mktg. Group, Inc., et al., Civil Action No.: 8:06-CV-02272 (M.D. Fla., filed Dec. 11, 2006)
FTC Stops Payment Processor Who Aided Cross-Border Telemarketing Fraud
International Operation Tapped Bank Accounts for Advance-Fee Credit Card Schemes
[TXT]
FTC v. 1522838 Ontario Inc., a corporation d/b/a International Indus. Trade Directory, Civil Action No. 06C-5378 (N.D. Ill, filed Oct. 4, 2006), press release available at ;
FTC Puts Brakes on International Bogus Billing Scam
At the request of the Federal Trade Commission, a federal judge has stopped a Canadian billing scheme that, since 2001, has targeted businesses and municipalities nationwide, and hotels and resorts in the U.S. and more than 25 other countries. The FTC charged three individuals and an Ontario corporation with defrauding U.S. businesses out of millions of dollars by billing and accepting payment for unauthorized listings and advertisements in non-existent business and travel directories, and for unordered and undelivered office supplies and consulting services.
[TXT]
FTC v. Digital Enterprises, Inc. d/b/a Movieland.com et al., Civil Action No.: CV06-4923 CAS (AJWx) (C.D. Cal., filed Aug. 8, 2006)
FTC, Washington Attorney General, Sue to Halt Unfair Movieland Downloads
The Federal Trade Commission has filed a complaint in U.S. district court, seeking to halt an operation that downloads software that barrages consumers with pop-ups demanding payment to make the pop-ups go away. The Office of the Attorney General of the State of Washington also has sued the operators. The FTC’s complaint asks the court to order the defendants to give up their ill-gotten gains to provide for consumer redress. A U.S. district court judge denied a request by the FTC to issue a temporary restraining order. Trial on the merits of the case will be scheduled for a later time.
[TXT]
FTC v. Datacom Mktg. Inc., et al., Civ. No. 06C 2574 (N.D. Ill., filed May 9, 2006)
Court Halts Canadian Operation Charging for Unordered and Unwanted Business Directory Listings
Operators Targeted Small Businesses and Non-Profits
At the request of the Federal Trade Commission, a U.S. District Court has halted a Canadian operation that raked in as much as a million dollars a month by tricking businesses into paying for unordered and unwanted business directories and listings. The court issued a temporary restraining order with an asset freeze against the defendants. This was the latest case announced today as part of “Global Con,” a coordinated, international effort to crack down on cross-border fraud.
[TXT]
FTC v. Accusearch d/b/a Abika.com, et al., Civil Action No.: 06-CV-0105 (D. Wyoming, filed May 1, 2006)
FTC Seeks Halt to Sale of Consumers’ Confidential Telephone Records
The Federal Trade Commission has filed federal court complaints charging five Web-based operations that have obtained and sold consumers’ confidential telephone records to third parties with violating federal law. The agency is seeking a permanent halt to the sale of the phone records, and has asked the courts to order the operators to give up the money they made with their illegal operations.
[TXT]
FTC v. Universal Premium Servs., et al., Civ. A. No. CV06 0849 (C.D. Cal., filed Feb. 14, 2006)
FTC Obtains Injunction Against the Companies Running the “Wal-Mart Shopping Spree” Scam
Defendants Took Cash from Consumers’ Bank Accounts Without Their Express Informed Consent
The Federal Trade Commission today announced it has obtained a temporary restraining order against a group of defendants running what has become known as the “Wal-Mart Shopping Spree” scam. The order prohibits the defendants from making misrepresentations to consumers and from engaging in deceptive or abusive telemarketing practices, freezes the defendants’ assets, and appoints a temporary receiver over the corporate defendants.
[TXT]
FTC v. Remote Response Corp., et al., Case No. 06-20168-CIV-Altonaga/Turnoff
(S.D. Fla., filed Jan. 23, 2006)
FTC Continues Campaign to Stop Fraud in the Spanish Language
Hispanic Law Enforcement and Outreach Forum Held in San Diego
False promises of a pre-approved, guaranteed MasterCard for a fee have been halted by a U.S. District Court at the request of the Federal Trade Commission. The FTC is also announcing today charges against a mortgage broker who offered his Spanish-speaking customers one set of terms verbally in Spanish, and another set of terms in documents written entirely in English. Also, the FTC staff sent guidance letters today to the owners and operators of 40 radio and television stations that ran Spanish-language ads that the FTC challenged as deceptive. The announcements came at a workshop held in San Diego today for law enforcement officials, consumer groups, and Hispanic leaders to discuss new ways to fight fraud in the community.
[TXT]
Canadian Scammers Permanently Banned from Telemarketing Three Ontario, Canada-based telemarketing companies and their principals have been permanently banned from engaging in telemarketing in the future under a settlement with the FTC. The companies were charged with duping consumers into revealing their bank account information and then debiting hundreds of dollars from their accounts. The settlement also provides that accounts with companies that processed the debits will be turned over to the FTC for consumer redress.
[TXT]
FTC Targets Scams Aimed at Hispanics Advancing its fight against scams targeting the Hispanic community, the FTC announced six law enforcement actions during the Hispanic Law Enforcement and outreach Forum in Phoenix, Arizona.
[TXT]
Cross Border Con Artist Ordered to Pay $2.9 Million The operator of a Canadian business directory scam, Terrence Croteau, has been ordered to pay $2.9 million to the FTC in consumer redress. Croteau had been previously charged with scamming small businesses and charities in the United States out of millions of dollars by billing them for business directory services they did not order or authorize.
[TXT]
International Competition Network Conference Promotes Convergence Among World’s Antitrust Enforcers The International Competition Network (ICN) held its fourth annual conference in June in Bonn, Germany. The ICN includes almost every competition agency in the world, and conference attendees included more than 400 representatives of 80 competition agencies and competition experts from around the world. At the conference, members approved recommendations designed to improve merger review processes, commended the success of ICN’s anti-cartel work, and showcased the significant progress member jurisdictions have made in implementing ICN recommendations. The Federal Trade Commission was represented by Chairman Deborah Platt Majoras, as well as several staff members.
[TXT]
FTC, Partners Launch
Campaign Against Spam “Zombies”
The FTC and 35 government partners announced “Operation
Spam Zombies,” an international campaign to educate Internet
Service Providers about hijacked, or “zombie,” computers
through which spammers route their e-mails, hiding the true
origin of the spam and flooding in-boxes. These FTC and its
partners sent letters to more than 3,000 ISPs around the world,
urging them to employ protective measures against this problem.
[TXT]
FTC and Law Enforcement
Partners Continue Targeting Scammers of Spanish-Speakers
On the one-year anniversary of the FTC’s Hispanic law
Enforcement and Outreach Initiative, the Federal Trade Commission
and state and local law enforcement officials announced 55 law
enforcement actions as part of their ongoing campaign to stop
fraud exploiting the Hispanic community.
[TXT]
FTC Submits Statement
to Canadian Parliament On National Do Not Call Registry
The Federal Trade Commission submitted a statement to the Committee
on Industry, Natural Resources, Science, and Technology of the
Canadian Parliament, providing an overview of the Telemarketing
Sales Rule and Do Not Call Registry and calling the Registry
“enormously successful.”
[TXT]
Two Companies Deceptively
Marketing Computer Systems To the Hispanic Community Settle
FTC Charges The Federal Trade Commission reached settlements
with companies it alleged had deceived Spanish-speaking consumers
who had responded to ads for low-cost computer systems. The
companies are Unicyber Technology, Inc., and Latin Shopping
Network, and the cases are part of the FTC’s Hispanic
Law Enforcement and Outreach Initiative. The settlements require
the defendants to pay a total of $545,000 in redress to consumers.
[TXT]
International Consumer
Protection Group Meets in Scotland To Address Cross-Border Fraud
Developments The Federal Trade Commission and members
of the International Consumer Protection and Enforcement Network
(ICPEN) met in Edinburgh, Scotland, on March 9-10 to discuss
the progress of international efforts to combat cross-border
fraud and explore new international initiatives to protect consumers
around the world. ICPEN also announced the results of a February
2005 Internet spam sweep, while the FTC issued a report detailing
cross-border fraud complaints for 2004.
[TXT]
Canadian Defendants
Charged with Bilking U.S. Consumers in Nationwide Business Directory
Scam A federal district court in Washington has granted
an order temporarily halting the business practices and freezing
the assets of several Canadian-based companies and their principles.
The Federal Trade Commission charged that these defendants targeted
United States consumers in a scheme to trick them into paying
for unordered business directories and listings in the directories.
[TXT]
FTC, Spanish Data
Protection Agency Working Together to Fight Illegal Spam
The Federal Trade Commission and Spain’s Agencia Española
de Protección de Datos (AEPD) have signed a bilateral
Memorandum of Understanding to promote enhanced cooperation
and information-sharing on spam enforcement activities.
[TXT]
FTC,
International Partners Unveil New Tool To Help Consumers Resolve
Cross-border Problems The Federal Trade Commission and
consumer agencies around the world have created a new tool to
help consumers locate neutral providers of resolution services
in their country to help them resolve cross-border disputes,
known as the International Alternative Dispute Resolution (ADR)
Directory. The Directory was unveiled on econsumer.gov, a joint
website operated by consumer protection agencies in 20 countries.
[TXT]
FTC Sues “Credit
Repair” Companies The Federal Trade Commission
has asked a federal district court to halt the illegal business
practices of two companies targeting Spanish-speaking consumers.
The FTC alleges that Florida-based Sunshine Credit Repair, Inc.
and Service Brokers Associates, Inc. used Spanish and English-language
advertising while making claims that they could improve consumers’
credit ratings, and that both companies violated the Credit
Repair Organizations Act.
[TXT]
FTC Signs Memorandum
of Understanding with Mexican Consumer Protection Body
The Federal Trade Commission and Mexico’s consumer protection
agency, the Procuraduría Federal del Consumidor (Profeco)
signed a bilateral Memorandum of Understanding in Washington,
D.C., to promote enhanced cooperation in the fight against cross-border
fraud.
[TXT]
International Telemarketing
Network Defendants Banned from Telemarketing The FTC
announced settlements with officers of a company that directed
an international telemarketing network that defrauded hundreds
of thousands of consumers, the Assail Telemarketing Network.
The FTC’s complaint alleged that the defendants operated
their advance-fee credit card scam through a network of telemarketing
boiler rooms, Canadian front men, and outsourced fulfillment
and customer service centers, and that they maintained their
own telemarketing boiler rooms in the United States, while also
keeping contact boiler rooms in the United States, Canada, India,
and the Caribbean.
[TXT]
Marketers of Herbal Dietary Supplement
Promoted in Chinese-Language Community Settle FTC Charges
Sagee U.S.A. Group, Inc., a company that heavily advertised
an herbal dietary supplement called “Sagee” to Chinese-language
and Vietnamese-language communities, has settled FTC charges
of making false and unsubstantiated claims for the product.
The defendants are prohibited from making unsubstantiated efficacy
claims for any dietary supplement, food, drug, device or service,
and must pay $10,000 in redress.
[TXT]
Swiss Company to
Provide Refund to U.S. Consumers The Federal Trade Commission
reached a settlement with a Switzerland-based company and its
United States counterpart, which sold a variety of dietary supplements
and devices that they alleged cured advanced and terminal cancers,
AIDS, and other serious diseases. The FTC alleged that the defendants
did not have a reasonable basis to substantiate the health and
safety claims made in their ads.
[TXT]
Court Finds Canadian
Defendants Violated Asset Freeze, Orders Defendant Jailed
A U.S. district court judge has held two Canadian corporations
and their principal, defendants in a July 2004 FTC lawsuit,
in contempt of court, and ordered that the individual be jailed
for violating a court-ordered asset freeze.
[TXT]
FTC Halts International
Credit Card Scam The Federal Trade Commission has charged
a telemarketing enterprise with boiler rooms in the United States,
Canada, and India with defrauding consumers out of millions
of dollars by offering them a “guaranteed” low-interest
credit card for an advance fee, then failing to come through
on its promise. A U.S. district court in Chicago issued a temporary
restraining order halting the defendants’ illegal activities,
freezing their assets, and appointing a receiver to take over
their operation.
[TXT]
Cross-Border Law
Enforcement Yields $1.5 Million in Redress for U.S. Consumers
Cross-Border cooperation between Canadian and U.S. law enforcers
will provide approximately $1.5 million in redress for victims
of four international lottery scams operated by telemarketers
based in Canada that targeted consumers in the United States.
[TXT]
Cross-Border Cops
Crack down on Bogus Advance-Fee Loans, Advance-Fee Credit Card
Schemes The Toronto Strategic Partnership, a group of
law enforcement agencies in the United States and Canada that
shares information and collaborates to combat cross-border fraud,
has targeted a scam involving unfulfilled “loans”
promoted by Ontario-based telemarketers who target U.S. citizens.
The FTC also announced an advance-fee credit card case developed
through work with the Partnership.
[TXT]
Canadian Enterprise
to Stop Selling Nonexistent Credit Cards A federal district
court has ordered a Montreal-based enterprise to stop calling
consumers and selling nonexistent credit cards. The Federal
Trade Commission alleged that the defendants charged consumers
an illegal advance fee of $299 and then never delivered the
promised credit cards.
[TXT]
FTC, International
Agencies Adopt Action Plan on Spam Enforcement The Federal
Trade Commission was one of nineteen agencies from fifteen countries
to announce an Action Plan on Spam Enforcement, a plan to combat
spam on a global level. The Action Plan calls for increased
investigative training, the establishment of points of contact
in each agency to respond quickly and effectively to enforcement
inquiries, and the creation of an international working group
on spam enforcement.
[TXT]
Canadian Marketers
of Fraudulent Weight-Loss Products Pay Redress to Settle FTC
Charges A Canadian-based fulfillment company doing business
as Beauty Visions Worldwide and SlimShop agreed to settle Federal
Trade Commission charges that it made false and unsubstantiated
weight-loss claims for two purported weight-loss patches, “Hydro-Gel
Slim Patch” and “Slenderstrip.”
[TXT]
FTC Continues Crackdown
on Scams Aimed at Hispanic Consumers The Federal Trade
Commission announced six law enforcement actions and a new consumer
education campaign to attack consumer fraud targeting the Hispanic
community. The companies named in the law enforcement actions
were involved with the marketing of bogus weight-loss products
and deceptive credit card offers, work-at-home scams, and a
scam involving English-language and auto mechanic courses.
[TXT]
U.S. and Canada
Sign Agreement to Provide For Enhanced International Antitrust
Cooperation Representatives of the United States and
Canada signed an agreement enhancing the process under which
they will refer cases of anticompetitive activities to each
other’s authorities for appropriate law enforcement action.
The agreement builds on the positive comity provision in the
1995 antitrust enforcement cooperation agreement between the
U.S. and Canada, and provides for more efficient application
of the two countries’ enforcement resources.
[TXT]
FTC Crackdown on
Illegal Canadian Lottery Sellers In several cases targeting
cross border scams by telemarketers, the FTC has charged Canadian
defendants with targeting seniors in the U.S. in illegal foreign
lottery schemes. In one of the cases, a federal judge has ordered
the defendants to pay $19 million in consumer redress.
[TXT]
Bogus California
Operation Targets Hispanic Consumers with Work at Home Opportunity
Scam The FTC is seeking preliminary and permanent injunctive
relief and consumer redress against a Los Angeles-based operation
for allegedly perpetrating a work-at-home scam targeting Spanish-speaking
consumers. The scammers allegedly place ads in Spanish-language
newspapers and magazines, offering easy product assembly work
with high earning potential.
[TXT]
FTC Launches Consumer Fraud Awareness
Campaign Targeted to Spanish Speakers
The Federal Trade Commission is launching a Spanish-language
consumer fraud awareness campaign, Mantente alerta contra el
fraude. Infórmate con la FTC (“Be on the alert
against fraud. Stay informed with the FTC”). The campaign
will be a pilot in 11 U.S. cities, and will include a series
of radio public service announcements and banner ads on Web
sites geared to Latino audiences.
[TXT]
Consumer Protection
Cops Join Forces to Fight Illegal Spam: Six Agencies on Three
Continents Will Leverage Law Enforcement Efforts The
Federal Trade Commission and five law enforcement agencies from
the United Kingdom and Australia announced a Memorandum of Understanding
which provides a framework for international cooperation in
fighting illegal spam. The agencies plan to promote wide attendance
at an October 2004 meeting in London which will deal with spam
enforcement issues.
[TXT]
FTC Charges Canadian
Defendants in Business Directory Scam The Federal Trade
Commission has requested a temporary restraining order and asset
freeze for Canadian defendants Pinacle Publishing and M.D.S.C.
Publishing, which have been charged by the FTC with scamming
small businesses and charities. The defendants allegedly bill
consumers for business directory services they did not order
or authorize and then refuse consumers’ requests to cancel
the services.
[TXT]
FTC Challenges
Cross-Border Telemarketing Scam Targeting Elderly Americans
The Federal Trade Commission has charged the Canadian telemarketer
International Protection Center with operating a “consumer
protection service” that promises to protect consumers
against telemarketing and unauthorized bank activity, then perpetrates
that very fraud. The FTC has obtained a temporary restraining
order and an asset freeze against the defendants, who often
pose as government or bank officials to dupe consumers into
disclosing their bank account information.
[TXT]
Fraudulent “Green Card”
Lottery Operators Hit a Red Light with the FTC and Florida U.S.
Attorney’s Office The Federal
Trade Commission helped shut down the fraudulent “green
card” lottery scam known as U.S.A. Immigration Services,
operated by husband and wife team John Romano and Hoda M. Nofal.
Both Romano and Nofal pled guilty and were sentenced to prison,
and are required to pay $2.2 million in consumer redress.
[TXT]
Canadian Telemarketer
Banned from Selling Business Directories and Office Supplies
The Federal Trade Commission announced a settlement in which
Albert Mouyal, the remaining defendant cited by a FTC action
with operating a bogus telemarketing boiler room in Canada,
is banned from telemarketing various products in the United
States. The defendant engaged in fraudulent business practices
in the sale of business directories and non-durable office supplies.
[TXT]
Canadian Telemarketers
Settle FTC Charges The FTC has obtained a stipulated
order including a permanent injunction against three companies
operating as a single enterprise out of Canada. The defendants
operated telemarketing boiler rooms allegedly selling bogus
credit card protection services and advance-fee credit cards
to U.S. consumers.
[TXT]
FTC Continues Campaign to Halt Deceptive
Advertisements & Other Scams Aimed at Hispanics
As part of its Hispanic Law Enforcement and Outreach Initiative,
the FTC settled lawsuits against both Paymentech Promotions,
involving fraudulent work-at-home business opportunities, and
BBCOA, involving fake international driving permits, bogus credit
repair services, and sham debt termination programs. The FTC
also announced a new law enforcement action against Kamarfu
Enterprises, challenging false advertising for their 1-2-3 Diet
Kit. All three of these companies have been known to target
Hispanic consumers.
[TXT]
FTC to Host Hispanic
Outreach and Law Enforcement Event The FTC will host
two workshops, “Hispanic Consumer Outreach Forum,”
and “Hispanic Consumer Protection Law Enforcement Workshop,”
on May 12-13, 2004.
[TXT]
Court Order Closes the Book on Canadian
Registry Scheme The FTC filed
a stipulated final judgement and order against defendants Ambus,
Sukhraj Singh Chana, and Garther Cheung, all based in Calgary,
Canada. The FTC alleged that these defendants deceived consumers
and businesses by claiming that someone in their office had
already agreed to purchase a business directory and a listing
in the directory and then failing to honor their 30-day refund
policy .
[TXT]
Federal Agencies
Publish Spanish-Language Version of Consumer Brochure on Predatory
Lending The federal Interagency Task Force on Fair Lending,
composed of the Federal Trade Commission and nine other federal
agencies, has published a Spanish-language version of a brochure
that alerts consumers to potential borrowing pitfalls. The brochure
cautions against “predatory lenders” and provides
tips for getting the best financing deal possible.
[TXT]
Third Annual International
Competition Network Conference To Take Place in Seoul, Korea
Two Federal Trade Commission officials will participate in the
International Competition Network Conference on April 21 and
22, 2004. The conference will focus on the recent work of three
ICN working groups: the Merger, the Capacity Building and Competition
Policy Implementation, and the Antitrust Enforcement in Regulated
Sectors Working Groups.
[TXT]
International Competition
Network Conference Adopts Recommended Practices to Improve Merger
Review Processes, Establishes Cartel Working Group The
International Competition Network’s conference in Seoul,
South Korea, resulted in the adoption of four new Recommended
Practices and the creation of a Cartel Working Group. The non-binding
Recommended Practices have to do with the conduct of merger
investigations, procedural fairness, confidentiality, and interagency
coordination.
[TXT]
FTC Announces Hispanic
Law Enforcement and Outreach Initiative Designed to Stop Deceptive
Advertising and Other Scams Aimed at Hispanic Consumers
The Federal Trade Commission announced its Hispanic Law Enforcement
and Outreach Initiative and announced seven matters against
allegedly deceptive advertising aimed at Spanish-speaking consumers.
The complaints filed were against Paymentech Promotions, American
Dream Enterprises, Latin Hut, Heritage Health Products, Unicyber
Technology, PT Resource Center, and Alternative Medical Technologies,
Inc. The FTC is also hosting a Hispanic Consumer Outreach Forum
on May 12, 2004 and a Law Enforcement Workshop on May 13, 2004.
[TXT]
Canadian Company
Settles FTC Charges that it Offered Bogus Cancer Therapy to
U.S. Citizens
The Federal Trade Commission reached a settlement with British
Colombia-based defendants in a bogus cancer cure lawsuit. The
defendants allegedly claimed that their "Zoetron machine"
could heat and kill cancer cells, and charged consumers $15,000
to $20,000 to receive the treatment in Tijuana, Mexico.
[TXT]
FTC Halts Fraudulent
Computer Business: Scam Targeted Spanish-speaking Consumers
The Federal Trade Commission filed a complaint against California-based
Unicyber Technology, Inc., Unicyber Gilboard, Inc., and Chul
K. Han, charging these entities with deceiving Spanish-speaking
consumers who were trying to order computer systems advertised
on Spanish-language television. The FTC alleges that these consumers
received boxes with only useless computer peripherals or salvaged
and refurbished computer models, and that consumers were charged
more than the price indicated in the advertisement.
[TXT]
Consumer Protection
Agencies from Around the World Meet in Finland to Combat Cross-Border
Fraud The Federal Trade Commission and members of the
International Consumer Protection and Enforcement Network (ICPEN)
will meet in Finland on March 22, 2004, to discuss international
efforts to combat cross-border fraud. Some of these efforts
include the recent "Too Good to be True" internet
sweep and ICPEN's econsumer.gov alternative dispute resolution
(ADR) pilot project.
[TXT]
FTC and International
Agencies Announce “Operation Secure Your Server”
The Federal Trade Commission and 36 other agencies in 26 countries
announced “Operation Secure Your Server,” an international
effort to reduce the flow of unsolicited e-mail. This initiative
urges organizations to close open relays and open proxies, servers
that allow any computer to bounce or route e-mails through severs
of other organizations, disguising the real origin of the e-mail.
[TXT]
Court Bars Canadian
Company from Misleading Consumers in Marketing of Internet Domain
Name Services The Federal Trade Commission announced
a stipulated final order against Domain Registry of America
(DROA), based in Ontario, Canada. The FTC alleges that DROA
sent mass-marketed direct mail to U.S. consumers, informing
them their Internet domain registrations were expiring, thereby
soliciting them to transfer their domain name from their current
Internet domain name registrar to a company called eNom, Inc.
DROA has been ordered to pay consumer redress and to comply
with future monitoring by the FTC.
[TXT]
Canadian Telemarketers
Banned from Selling Business Directories and Office Supplies
The Federal Trade Commission and Canada’s Competition
Bureau reached a settlement with the Canadian telemarketing
companies Hanson Publications, Inc., 9069-5057 Quebec, Inc,
and Associated Merchant Paper Supplies, Inc, as well as Adrian
P. Towning, and Charles Hamouth. The defendants allegedly used
deceptive scripts to mislead U.S. consumers to believe that
their business had a prior, ongoing relationship with them,
and to convince the consumers to accept delivery of and make
payments for business directories and paper and ink supplies
for credit card machines.
[TXT]
FTC Urges Consumers
to Be Wary of “El Gordo” Spanish Lottery Scam
The Federal Trade Commission is urging consumers to beware of
a foreign lottery scam that adopts the name of Spain’s
largest lottery prize, “El Gordo,” to con consumers
out of considerable sums of money. Consumers in the United States
may receive phony letters claiming that they have won a large
cash prize, but must pay a sum that will go towards taxes, bank
costs, and processing fees before the prize can be claimed.
The FTC also reminds U.S. consumers that participating in a
foreign lottery is illegal.
[TXT]
Court Order Puts
Brakes on International License Markets The Federal Trade
Commission announced a stipulated final judgment against Mountain
View Systems, Ltd., Wheelie International, Ltd., S.C. Hyacinth
S.R.L, Jason Abraham, Caroline Shallon, and Charles Fogel for
selling fake international driver’s permits (IDPs) and
related materials. The FTC alleges that the defendants misrepresented
that their IDPs enabled consumers to drive legally in the United
States and abroad and placed consumers, including immigrants
and those with limited English proficiency, at risk of legal
action or arrest if caught driving with only these documents
and no valid license.
[TXT]
FTC Advises
Customers of USA Immigration Services to Re-Register for 2003
State Department ‘Green Card’ Lottery
The Federal Trade Commission obtained a temporary restraining
order and asset freeze against USA Immigration Services for
misleading prospective immigrants into believing that the company
was affiliated with the U.S. government, and, for a fee, could
help consumers register through the diversity visa (DV) lottery
for a chance to apply for a green card. Entering the DV lottery
is free and individuals can enter on their own at the State
Department’s web site.
[TXT]
Cross-Border Con:
FTC and Canadian Authorities Shut Down Telemarketers Calling
Foreign Lottery “Winners” The Federal Trade
Commission received a temporary restraining order against telemarketing
operators based in Vancouver, British Columbia, doing business
as West Star and Newport Group. According to the FTC, these
companies called primarily elderly U.S. consumers and told them
they had won a foreign lottery but must pay a variety of up-front
fees to collect their winnings, but few consumers received any
money.
[TXT]
Court Orders Canadian Enterprise
to Stop Calling U.S. Consumers and Selling Nonexistent Credit
Cards The Federal Trade Commission
charged in federal court that a Montreal enterprise known as
Kinito has been calling U.S. consumers with poor credit histories,
promising major credit cards and charging as much as $299 without
ever delivering the cards. Often consumers receive only packets
of promotional materials and are unable to obtain refunds from
Kinito.
[TXT]
Consumer Protection
Agencies Meet in Helsinki to Share Investigative Techniques
and Combat Cross-Border Fraud At a two-day meeting being
held in Helsinki, Finland, the Federal Trade Commission and
members of the International Consumer Protection and Enforcement
Network (ICPEN) announced several initiatives to combat cross-border
fraud. In addition, the network unveiled new developments for
its website, www.econsumer.gov: a pilot project that gives consumers
who visit the website the option of having their cross-border
complaint referred to a provider of alternative dispute resolution
(or ADR) services, and it announced that the website is now
available in Korean.
[TXT]
FTC and the Irish
Director of Consumer Affairs Agree to Enhance Cooperation on
Consumer Protection Matters The Federal Trade Commission
and Ireland’s Office of the Director of Consumer Affairs
(ODCA) signed a Memorandum of Understanding (MOU) that was announced
at the International Consumer Protection and Enforcement Network
(ICPEN) meeting in Helsinki, Finland.
[TXT]
FTC Shuts Down Operators
of Web Sites Who Allegedly Falsely Claimed to Help People Enter
State Department’s ‘Green Card’ Lottery: Posing
as Government Agency, Defendants Operated Fraudulent ‘Registration’
Web Pages The Federal Trade Commission obtained a temporary
restraining order and asset freeze against Global Web Solutions,
Inc., and related defendants for violating the FTC Act in a
variety of ways, including misleading consumers into believing
they were affiliated with the U.S. government, and that they
could help consumers register through the Diversity Visa lottery
for a chance to apply for a permanent resident visa (green card).
[TXT]
International Telemarketing
Network That Sold Bogus Advance-Fee Credit Card Packages Banned
from Telemarketing A U.S. district court has approved
three separate settlements filed by the Federal Trade Commission
against companies that were part of the Assail Telemarketing
Network, permanently barring them from engaging in telemarketing
of any kind based on the FTC’s allegations that the defendants
violated the FTC Act by operating an advance-fee credit card
scam that specifically targeted consumers with poor credit histories.
[TXT]
Canadian Telemarketers
to Pay for Duping U.S. Consumers into Buying Bogus Credit-related
Products: Defendants Were Sued as Part of “Operation No
Credit” Sweep A U.S. district court has approved
a settlement between the Federal Trade Commission and several
related Toronto-based telemarketers that includes a wide ban
on selling or distributing advance-fee credit cards and other
credit-related products as well as provisions for redress.
[TXT]
FTC Settles with
Cross Border Con Artists: Nearly $1.9 million Recovered for
Consumer Redress Settlements providing a total of $1.9
million in consumer redress were entered by a U.S. District
Court in Seattle in two separate cases involving foreign lottery
schemes that specifically targeted the elderly.
[TXT]
FTC Chairman Testifies
on International Consumer Protection: Muris Says Cross-Border
Fraud Is on the Rise, Urges Legislative Improvements
In a testimony before the Subcommittee on Commerce, Trade, and
Consumer Protection of the House Committee on Energy and Commerce,
FTC Chairman Timothy J. Muris testified in support of the International
Consumer Protection Act of 2003, proposed legislation to improve
the FTC’s enforcement authority to combat cross-border
fraud.
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FTC Charges Canadian
Company with Fraudulent Sales of Business Directories: Commission
Obtains TRO and Asset Freeze The Federal Trade Commission
obtained a temporary restraining order and asset freeze against
a Quebec-based company, Datatech Communications, Inc., and related
defendants for deceptively marketing “business directories”
to small businesses in the U.S. in violation of Section 5 of
the FTC Act.
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FTC Drives International
License Marketers out of Business Several marketers of
bogus International Driver’s Permits, including several
foreign-based defendants, settled Federal Trade Commission charges
that they violated the FTC Act by deceptively claiming that
their documents were legal substitutes for a government-issued
driver’s license or other photo identification.
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American Business
Registry’ Sellers Barred from Billing U.S. Consumers Who
Never Authorized Listings Canadian-based defendants who
called American consumers and misrepresented that they have
agreed to purchase the company’s “American Business
Registry” and a listing in the directory agreed to be
preliminarily enjoined to suspend their activities.
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FTC Halts Bogus
Cross-border Lottery Scheme The Federal Trade Commission
has filed suit in U.S. District Court to shut down the operation
of a cross-border con artist who targeted elderly U.S. citizens
in a bogus foreign lottery scheme.
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FTC Joins International
Law Enforcers in Announcing Newly Developed Cross-Border Fraud
Guidelines FTC Chairman Timothy J. Muris and FTC Commissioner
Mozelle W. Thompson, Chair of the Committee on Consumer Policy
of the Organisation for Economic Cooperation and Development
("OECD"), together with officials from the OECD, announced
new Guidelines that outline a framework for international cooperation
in the effort to combat the growing problem of cross-border
fraud.
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FTC Commissioners
Testify on Agency’s Reauthorization Request In
separate testimony before the Subcommittee on Competition, Foreign
Commerce, and Infrastructure of the Senate Commerce Committee
and the Subcommittee on Commerce, Trade, and Consumer Protection
of the House Energy and Commerce Committee, the FTC requested
that Congress enact legislation that would “better address
the changing nature of the consumer marketplace and improve
the agency’s ability to cooperate and share information
in cases and investigations relating to cross-border fraud.”
The FTC’s recommendations focus primarily on improving
its ability to combat fraud involving foreign parties, evidence,
or assets. The proposals would help the FTC fight deceptive
spam by allowing the Commission to investigate more fully spam
originating from outside the United States.
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Fraudulent Canadian
Credit Card Operation Permanently Halted As part of a
settlement with the Federal Trade Commission, a U.S. court has
entered an order permanently barring a Toronto-based company
from selling advance-fee credit cards and requiring it to pay
$1.3 million for consumer redress.
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Skybiz Pyramid Settlement
to Provide $20 Million for Consumers Distribution of
$20 million dollars in consumer redress will begin in the near
future for victims of SkyBiz, an alleged massive international
pyramid operation, that victimzed consumers in more than 50
countries.
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International Telemarketing
Network Ordered To Stop Marketing Bogus Advance-Fee Credit Card
Packages A federal district court barred an international
telemarketing network operating from the Caribbean, United States,
Canada and India from illegally marketing advance-fee credit
card packages.
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Consumers Nearly
Double; More than $60 Million Paid by U.S. Consumers for Fraudulent
Products or Services As part of its two-day "Partnerships
Against Cross-Border Fraud" workshop, the Federal Trade
Commission has released a report detailing consumer complaints
about cross-border fraud and listing the top complaint categories
reported by consumers in 2002.
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Canadian Operation
That Charges U.S.Consumers Without Authorization Challenged
by the FTC The Federal Trade Commission has asked a federal
court to bring an end to the practices of a Canadian enterprise
that charges consumers' credit cards and debits their bank accounts
without authorization.
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FTC, Canada, and
Mexico Officials Crack Down on Foreign Companies That Offer
Bogus Cancer Treatment In coordination with officials
in Canada and Mexico, the Federal Trade Commission has charged
CSCT, Inc., based in British Columbia, with making false claims
that it can treat cancer by using an electromagnetic device
to kill cancer cells.
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FTC Cross-Border
Fraud Workshop to Address Trends, Partnerships Representatives
from the U.S. and abroad gathered for two days in Washington,
D.C. to explore ways the public and private sectors can work
together cooperatively to combat cross-border fraud. The workshop
has been organized as part of the FTC's Five-Point Plan for
Fighting Cross-Border Fraud, announced in October 2002.
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Cross Border Fraud
Trends (January - December 2002) Consumer Sentinel is
a secure automated consumer complaint database developed by
the Federal Trade Commission (FTC), in cooperation with its
law enforcement partners, to collect and make available investigative
information about consumer fraud and deception. Currently, the
Consumer Sentinel database has over a million complaints received
by the FTC and other data contributors. The collected investigative
information is accessible to federal, state, and local law enforcement
agencies in the United States, Canada, and Australia through
a secure, password-protected Web site. Between January 1999
and December 2002, more than 100 organizations contributed data
to Consumer Sentinel. More information on this joint project
is available at www.consumer.gov/sentinel.
[PDF]
Court Halts Illegal
Canadian Lottery Scheme A U.S. district court has granted
a preliminary injunction halting the operation of Canadian telemarketers
who illegally marketed lottery tickets to senior citizens in
the United States in violation of federal laws.
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FTC's Five-Point
Plan For Attacking Cross-Border Fraud FTC Chairman Muris
Presents the FTC's New Five-Point Plan For Attacking Cross-Border
Fraud and Highlights Links Between Competition and Consumer
Protection
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Consumer Protection
Agencies Combat Cross-Border Fraud At a three-day meeting
being held in Sydney, Australia, the Federal Trade Commission
and members of the International Marketing Supervision Network
(IMSN) announced two initiatives to combat cross-border fraud:
The network reported the results of a global law enforcement
sweep involving Internet health scams, and it unveiled the newly
designed Web site, www.econsumer.gov
, where consumers can file cross-border e-commerce complaints
that can be accessed by IMSN partners.
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U.S., Canadian Law
Enforcers Target Cross-Border Telemarketers Law enforcers
from both sides of the border have taken aim at Canadian telemarketers
who target U.S. citizens for cross-border scams. In a series
of coordinated crackdowns, the Federal Trade Commission and
17 Canadian and U.S. law enforcement and consumer protection
agencies have unleashed criminal and civil law enforcement initiatives
to stop the schemes and recover money for victims, many of whom
are elderly.
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Canadian Company
Targets U.S. Citizens with Phony Credit Card Offers for an Advance
Fee The Federal Trade Commission has charged a Toronto-based
company with eight telemarketing boiler rooms with operating
a fraudulent advance-fee credit card business. The defendants'
telemarketers told consumers that they would receive pre-approved
MasterCard or Visa credit cards with low interest rates, credit
limits of $2,000 or $2,500, and no annual fees. Consumers paid
the defendants by agreeing to have their bank accounts debited
for the advance fee of $189 to $219. The Commission alleges
that the defendants violated the FTC Act and the Telemarketing
Sales Rule (TSR) in the promotion of advance-fee credit cards.
A federal district court in Chicago has entered a temporary
restraining order prohibiting false claims and freezing the
defendants' assets.
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Partnership Fights
Cross-Border Fraud A recently announced U.S. Federal
Trade Commission case involving fraudulent Canadian telemarketers
who targeted American consumers highlights the success of a
new strategic partnership formed to fight cross-border fraud.
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[PDF]
Deposit Check, Forfeit
Cash: The New Twist in Phony Prize Promotions Imagine
getting a phone call announcing that you've won $125,000 in
a foreign lottery. You're told that a cashier's check for $25,000
- the first installment on your winnings - is in the mail, but
that you won't have to pay the fees and taxes on your prize
until you've deposited the check in the bank.
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[PDF]
Don’t Let
Scam Artists Make You a Lottery Loser
[PDF]
Federal Trade Commission
Testifies On Actions to Combat Cross-border Telemarketing Fraud
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Law Enforcers Target
"Top 10" Online Scams; Consumer Protection Cops From
9 Countries, 5 U.S. Agencies, And 23 States Tackle Internet
Fraud
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United States and
Twelve Countries Unveil econsumer.gov
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