The Federal Trade Commission has settled with a Canadian-based telemarketer over a cold-call scheme that promised to remove consumer’s personal information from the Internet to protect against identity theft.
The FTC alleged that the telemarketer and his related businesses called tens of thousands of U.S. consumers in an attempt to sell them fake identity theft protection services and low-interest credit cards, the FTC said.
Under the terms of the court settlement, the telemarketer will refund consumers more than $111,354.
The FTC reached the settlement with Reuben Ross, an officer of R&R Consultants Inc., also named in the agreement and Coast to Coast Benefits Inc. doing business as R&R, Peace and Quiet, Consumer Alert, R&R Financial and Consumer Information Services.
The defendants also allegedly promised to delete consumer’s names from all telemarketing lists and in a separate scheme told consumers they could receive a low-interest credit card for an advance fee of a few hundred dollars. The consumers received tips on applying for credit cards and a list of banks, the FTC said.
Under the court order, the defendants are banned for life from marketing credit-related goods or services and protection services, the FTC said. The order was filed in the U.S. District Court for the Northern District of New York on April 12.
The settlement is part of a broader enforcement program called “Operation Ditch the Pitch” that began in 2001to crack down on out-bound telemarketing fraud.
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