A Florida-based telemarketer will pay over $90,000 to resolve more than 100 complaints that it illegally contacted consumers on the state’s do not call list and/or charged consumers’ credit cards without authorization.
Pennsylvania Attorney General Tom Corbett’s Bureau of Consumer Protection announced Thursday that it had entered into a agreement with ABI Marketing Inc. of Clearwater, FL to resolve alleged violations of the state’s Telemarketer Registration Act and Consumer Protection Law.
The investigation involved complaints from consumers in every Pennsylvania County except Elk County. According to a statement from the AG’s office, through 2003 ABI Marketing contacted consumers by telephone to sell various goods or services including memberships into buyers clubs.
Many who received the calls were registered on the state’s do not cal” list. Corbett’s office said that according to the consumers contacted, the telemarketers failed to identify themselves or the company on whose behalf they were calling. Consumers also complained that they were misled about the purpose of the calls, saying they were told the calls were to offer coupons or other incentives as a thank you for a previous purchase, rather than to encourage a purchase.
Investigators said unbeknownst to consumers, the free trial offers included hidden processing fees. The costs were automatically charged to their credit or debit cards if they didn’t reject the contracts during a free trial period.
Corbett said in other cases, some consumers were charged for memberships or services even though they said they were not interested.
Under the terms of the settlement, ABI Marketing is required to pay $69,800 in restitution to consumers who already filed complaints or wish to file a complaint before July 30; pay $10,200 to the 102 consumers who filed “Do Not Call” complaints; and pay $10,000 in civil penalties.
ABI is also required to cease transferring to any third parties consumers’ personal or financial data to third parties.
The agreement was filed in Lackawanna County Court. The case was handled by Senior Deputy Attorneys General E. Barry Creany and J.P. McGowan of Corbett’s Bureau of Consumer Protection.
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