ABA Consumer Protection
May 2008 Update
Davis Wright Tremaine LLP
Alan Middleton
Maurita Coley
Ronnie London
FTC Update: New Cases
Operation Tele-PHONEY
Over 180 cases linked
13 new FTC cases – all actions against telemarketers
Typical claims:
Sending unordered household goods to consumers
Offering phony tax rebates or prescription drug plans
Using fraudulent sweepstakes pitches
Offering free gifts
Promising that for an advance fee, consumers would be
“guaranteed” to receive loans or credit cards that never
materialized or were useless
Using consumers’ bank account information to bill them without
their authorization
Harassing consumers to pay for unordered goods
Violating rules of the DNC Registry
FTC Update: New Cases (cont’d)
Operation Tele-PHONEY (cont’d)
Med Provisions: Discounted Canadian prescription drugs
(N.D. Ohio)
Union Consumer Benefits: Canadian marketing of worthless
medical discount packages (N.D. Illinois)
Steven Breitling/ICS Financial: Promise of non-existent
“guaranteed” loans for fee (D. Oklahoma)
American Financial Card: Promise of credit card for
advance fee; subsequent delivery of catalog card (M.D.
Florida)
Integrity Financial Enters.: Same (M.D. Florida)
Financial Advisors & Assocs.: Same (M.D. Florida)
Handicapped & Disabled Workshops: Targeting elderly for
unwanted household products at exhorbitant prices,
misrepresenting charitable nature (D. Ariz.)
FTC Update: New Cases (cont’d)
Operation Tele-PHONEY (cont’d)
Helping Hands of Hope: Same (D. Ariz.)
U.S. Magazine Servs.: Misrepresenting cost of
subscriptions (D. Mont.)
Publishers Business Servs.: Subscription sales
masquerading as survey (D. Nev.)
NHS Systems: False promise of grants, tax refunds,
rebates (E.D. Pa.)
CityWest Advantage dba Unified Servs.: “Internet
shopping spree” scam to obtain banking info (D. Nev.)
Direct Connection Consulting: Promises of free gift
cards, gas cards, or free resort vacations to obtain
banking info (N.D. Ga.)
FTC Update: