Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Your Yellow Book’s assets frozen after alleged sales scam, (Aug 7, 2014)
Organizations Mentioned:Your Yellow Book Inc.
By Greg Hammond, J.D.
The FTC has secured a temporary restraining order against Your Yellow Book Inc. (YYB) for allegedly engaging in the deceptive sales of Internet business-directory listings throughout the United States. The purported scheme bamboozled hundreds of thousands of dollars from small businesses, including doctors’ offices, religious schools, and retirement homes, by charging them for unwanted listings in YYB’s online “yellow pages” directory, the Commission stated (FTC v. Your Yellow Book Inc., File No. 142 3070, Case No. CIV-14-786-D).
In its complaint, the Commission alleged that YYB faxed or mailed documents to consumers, displaying the Yellow Page directories’ well-known symbol of two “walking fingers.” The documents, which resembled invoices, asked consumers to verify or update their current listing information in YYB’s Internet business-directory, and charged consumers around $487 per year. The Commission also alleged that after sending the ads or “invoices,” YYB made unsolicited telephone calls to consumers, representing that consumers previously authorized or agreed for the listings and that they must pay YYB’s “invoice.” In addition, the complaint asserts that YYB made “collection calls” to consumers, or told consumers they would have to pay a cancellation fee. The Commission consequently argues that YYB violated the FTC Act by engaging in unfair or deceptive acts or practices in or affecting commerce.
The federal district court in Oklahoma City, issued a temporary restraining order against YYB on July 25, 2014. As such, the company is currently prohibited from misrepresenting or assisting others in misrepresenting any material fact regarding: (1) preexisting business relationships with consumers; (2) consumer agreements to purchase goods or services from YYB; and (3) consumers owing money to YYB. The court also placed a freeze on the company’s assets.
Although the Commission has obtained a temporary restraining order, it ultimately seeks permanent injunction to prevent future violations of the FTC Act. Additionally, the Commission requests relief to redress consumers’ injuries resulting from YYB’s alleged violations.
Companies: Your Yellow Book Inc.
News: ConsumerProtection FederalTradeCommissionNews