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Officials Investigate Online Directory Scams
You want potential customers to find your business quickly on the Internet, right? That question is apparently leading to thousands of complaints by small businesses, churches, even VFW halls. The Federal Trade Commission's Midwest Division and the Illinois attorney general’s office are both taking on alleged "cramming" cases, in which companies put charges on phone bills for Internet listings.

The FTC's Midwest division director, Steve Baker, says he wouldn’t be surprised if the victims are losing tens of millions of dollars each year to these "boiler-room, bogus online directories."

Beth Blackstone, one of Illinois' assistant attorneys general in the consumer fraud division, is also tracking these complaints. She cites two avenues for the cramming: one, a company simply puts a charge on the phone bill; and, two, a company calls a small business or not-for-profit, and asks about an updates listing, then later adds the charge to a phone bill. While some companies may record the phone call, several complaints say when they're asked to hear the recording, much of it is edited out.

The FTC and Illinois attorney general's office have both sued such companies, and have settled out of court for a reversal of at least most of the charges. Both say such suits will continue.

(Illinois Radio Network)
08 04 09 by Newsroom
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