Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Two online business directory telemarketers agree to settle FTC fraud charges, (Dec 22, 2014)
Organizations Mentioned:7051620 Canada, Inc. | Your Yellow Book Inc.
By Linda O’Brien, J.D., LL.M.
The defendants in two online business directory schemes have been banned from the business directory business under settlements with the FTC, the agency announced today.
Both operations were charged with defrauding small businesses and nonprofits by charging them for online business directory listings they had not ordered or received. Their deceptive tactics included unsolicited telemarketing calls and fake invoices with the walking fingers image often associated with local yellow page directories.
In June 2014, the FTC and the State of Florida filed a complaint against Francois Egberongbe, Robert Durham, Sr., and 7051620 Canada, Inc., based in Montreal, in the U.S. District Court for the Southern District of Florida (FTC v. 7051620 Canada, Inc., File No. 142-3046). The court halted the operation and froze its assets pending litigation.
Under a settlement with the FTC, the defendants were banned from telemarketing and agreed to pay $1.7 million to reimburse consumers who lost money to the scam.
The Commission vote approving the proposed stipulated order for permanent injunction against in Egberongbe, Durham and 7051620 Canada, Inc. was 5-0.
In a complaint filed in the U.S. District Court for the Western District of Oklahoma in July 2014, the FTC charged Your Yellow Book Inc.(YYB), Michelle Law, Dustin Law, and Robert Ray Law, based in Oklahoma City, with defrauding small businesses, doctors’ offices, retirement homes, and religious schools (FTC v. Your Yellow Book Inc., File No. 142-3070). The defendants asked consumers to verify or update information in YYB’s Internet business directory and to pay up to $487. Many consumers paid, believing their organization had agreed to be listed in the directory.
The settlement order imposed a $715,000 judgment against the defendants, causing them to surrender certain bank accounts and proceeds from the sale of certain vehicles owned by Dustin Law. The judgment against Brandie Law was suspended.
The Commission vote approving the proposed stipulated order for permanent injunction against Your Yellow Book Inc. and the Laws was 5-0.
Under both settlement orders, the defendants were prohibited from making the types of misrepresentations alleged in the FTC’s complaints, profiting from customers’ personal information, failing to properly dispose of customer information, and collecting money from customers.
Companies: 7051620 Canada, Inc.; Your Yellow Book Inc.
News: ConsumerProtection FederalTradeCommissionNews