RJB Telecom, an adult Web site company, has settled Federal Trade Commission charges that it illegally billed consumers’ credit cards and phone bills without their authorization, according to the FTC.
As part of the settlement, the firm must establish a $250,000 escrow fund, which will be forfeited if the agreement is violated. The company must also send an e-mail confirming membership agreements or purchase of adult services.
The FTC filed suit last October, alleging that RJB offered consumers a “free teaser” visit to its Web sites, then billed their credit cards for membership fees without authorization. Also named as defendants in the case were the firm’s principals, Robert and Richard Botto.
In some cases, victims had their credit cards billed without ever having visited the sites, according to the FTC.
Consumers who tried to exit the credit card membership screen were shifted to a screen that gave them a phone dialer option, the FTC charged. At this point, the victim’s computer modem was disconnected from his Internet Service provider, and he was connected to the Web sites via an international phone number, the complaint continued.
Victims found additional charges on their long-distance phone bills.
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