The Federal Trade Commission has settled a telemarketing complaint with two Canadian brothers and their companies involving international lottery promotions.
Bruce George Alexander Ironside and his brother Stephen Albert Ironside, joint owners and co-directors of the teleservices agencies Newport Group and West Star, have been required to pay $11,800 and $45,700 in consumer redress, respectively
According to the complaint, telemarketers targeted elderly U.S. consumers, telling them they won prizes, but that they needed to pay various upfront fees to collect them. In some instances consumers were contacted several times to persuade them to send multiple payments.
Consumers paid $500 to more than $35,000 purportedly for duties, taxes, entry, processing or participation fees, without receiving any prizes, according to the FTC.
The brothers were charged with violating the FTC Act and Telemarketing Sales Rule. The case was filed in Seattle at the U.S. District Court for the Western District of Washington.
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