FTC Creates Hotline to Assist Victims of Alleged Web Cramming The Federal Trade Commission has created a hotline for consumers who believe they were victims of an alleged Web “cramming” scam.
In October 2003, the FTC sued National Online Services, Inc., Liberty Online Services, Inc., B2B Advantage formerly known as SBA Online, Inc., and Ameripages, Inc. a/k/a Amerilinc, Inc. and their parent company, Epixtar Corporation, alleging that they deceptively marketed a free, 30-day trial of Internet services to small businesses and non-profit organizations.
The complaint alleged the defendants “crammed” a charge of $29.95 per month on the telephone bills of businesses that didn’t cancel during the trial period, without obtaining consumers’ permission to bill them. The FTC then obtained a temporary restraining order that froze the defendants’ assets.
In November 2003, the FTC and the defendants agreed to the terms of a preliminary injunction requiring them to notify current customers they were being billed. They were also required to permit these consumers to cancel if they never authorized service. The preliminary injunction also stipulated that some of the frozen funds would be used for refunds. The injunction will be in effect until the court issues a final ruling on the FTC’s allegations.
The FTC’s hotline, which will open shortly at 202-326-2998, will advise consumers on what steps to take if they receive a notice from the defendants, and what they should do to obtain a refund.
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