The Federal Trade Commission has filed a complaint against a Canadian company, alleging the firm deceptively telemarkets directories to small U.S. businesses.
According to the complaint, telemarketers for Datatech Communications Inc. call businesses and say they are calling to “renew” a listing in a business directory. The FTC alleges Datatech makes it difficult for consumers to cancel these listings, and that the defendants disguise that they are based in Quebec and not the United States.
Callers frequently do not disclose their identity, according to the FTC, or may claim to be with the Yellow Pages or a local phone company.
Datatech typically charges $299.95 for a two-year listing in its directory, along with a copy of the AT&T National Business Buyers Guide, plus shipping and handling charges. In some instances, when the consumers decline to renew they have been billed anyway, according to the FTC.
In many instances, said the FTC, consumers discover that they never initially purchased a directory listing from Datatech and that they were billed for a “new” purchase instead of a renewal.
According to the FTC, when consumers are reluctant to renew, sometimes the callers state they may cancel without obligation when billed. But when consumers try to cancel, the FTC alleges Datatech doesn’t honor the requests, often arguing that a collection fee typically ranging from $49 to $159 is due.
Datatech Communications, Inc., Datatech-Quebec, and I-Point Media, along with executives Robert Brewer, Elias Bakomichalis, and Gregory MacNeil are named in the complaint.
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