The Federal Trade Commission has filed a civil action against Cross Media Marketing Corp, alleging telemarketing violations by its magazine division.
The complaint was filed on Tuesday against Cross Media, its wholly-owned subsidiary, Media Outsourcing Inc., and certain officers, alleging the unit had violated the Telemarketing Sales Rule, the Federal Trade Commission Act and a 1996 FTC order involving Direct Sales International Inc., a predecessor company.
“Cross Media management was completely surprised by this action,” said Ronald Altbach, chairman and CEO, in a statement. “Since our acquisition of the assets of Direct Sales International, our magazine division, in January of 2000, we have taken regulatory issues very seriously and believe that we have been, and are, in compliance with all telemarketing and other regulatory requirements including the 1996 consent order entered into by the former owner. “
Altbach noted that the company’s recent acquisitions of National Syndications Inc. and Lifeminders, Inc. were not impacted by the FTC action.
