Markets Wired

The Federal Trade Commission today announced that phone numbers on the national Do Not Call Registry now exceed 200 million, and that signing up for the Registry to prevent unwanted telemarketing calls is fast, free, and easy.

The Do Not Call Registry empowers consumers to take charge of the commercial telemarketing calls they get at home. The FTC created the Registry in 2003 to make it easier and more efficient for consumers to protect their privacy and stop unwanted telemarketing calls. Consumers can register online at www.donotcall.gov or call toll-free, 1-888-382-1222 (TTY 1-866-290-4236), from the number they wish to register. Once consumers have registered their phone number, they never need to re-register. Also, they can use the Do Not Call website (https://www.donotcall.gov/) to verify that their phone number is still on the Registry if they move or if their phone is temporarily disconnected.

Filing a Complaint

Consumers should file a complaint with the FTC if they receive an unwanted telemarketing call after their number has been on the Registry for 31 days. They also should file a complaint if they get a call that uses a recorded message instead of a live person (commonly known as a “robocall”) whether or not their number is on the Registry, if they have not agreed in writing to receive such calls.

Even if a consumer’s phone number is registered, charities, political organizations, and telephone surveyors are still permitted to call. Companies with which consumers have done business within the last 18 months may also continue to call, unless consumers have asked them to stop calling. Debt collectors may also continue to call consumers, whether their number is on the Registry or not. For more information about consumers’ rights when it comes to debt collection calls, go to: http://www.ftc.gov/bcp/edu/microsites/moneymatters/dealing-with-debt-collection.shtml.

Enforcement

Since 2003, the FTC has brought more than 60 complaints alleging violations of the Registry rules, with the largest settlement resulting in a $5.3 million penalty. A list of all Do Not Call enforcement actions from 2003 through 2010 can be found at: http://www.ftc.gov/bcp/edu/microsites/donotcall/mediacenter.html.

Cell Phones and the DNC Registry

The Do Not Call Registry accepts registrations from both cell phones and land lines. Consumers can place their cell phone number on the Do Not Call Registry to notify marketers that they do not want to receive unsolicited telemarketing calls, but federal regulations already prohibit most telemarketing targeted at cell phones. A consumer alert with more information can be found at: http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt184.shtm.

Privacy and Security

Federal law requires the FTC to tell consumers how the agency collects, uses, shares, and protects their personal information – including phone numbers on the Do Not Call Registry. Federal law also limits how the FTC can use consumers’ personal information. Protecting the privacy and security of consumers’ personal information is very important to the agency. Please read the notice at the following link to understand what the FTC does with the personal information it collects both online and offline: http://www.ftc.gov/ftc/privacy.shtm.

To learn more about the Do Not Call Registry and the rules that enforce it, visit the FTC’s website at www.donotcall.gov or the FCC at www.fcc.gov.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

 

Eight marketers are banned from selling mortgage modification or foreclosure relief services under settlements with the Federal Trade Commission. The FTC alleged that the marketers charged homeowners up-front fees and falsely claimed they could get their mortgage loans modified or prevent foreclosure on their homes. The settlements in three separate actions are part of the FTC’s ongoing efforts against scams that target financially distressed consumers.

The FTC settled with the following defendants:

Federal Loan Modification Law Center. Steven Oscherowitz settled FTC charges that he and others advertised and sold a so-called “Federal Loan Modification program.” They charged up to $3,000, much of which they required up-front, but Federal Loan Modification often failed to live up to the promised results, according to the FTC’s complaint. (4/6/2009 release http://www.ftc.gov/opa/2009/04/hud.shtm). The settlement order against Oscherowitz permanently bans him from selling mortgage relief services and from telemarketing any good or service. Under the order, Oscherowitz also is prohibited from misrepresenting any good or service, selling or otherwise benefitting from customers’ personal information, and failing to dispose of customer information properly. The order imposes an $11.5 million judgment against Oscherowitz, which represents the amount consumers paid to the defendants while he was involved in the alleged scheme. Any money collected to satisfy the judgment will be paid to injured consumers if practicable, or to the U.S. Treasury as disgorgement of ill-gotten gains. Two individual and three corporate defendants already have settled charges against them in this case, and the FTC continues to pursue its case against five other defendants.

Loss Mitigation Services. Dean Shafer, Marion Anthony “Tony” Perry, and Bernadette Perry, also known as Bernadette Carr and Bernadette Carr-Perry, settled allegations that they falsely promised that a loan modification was assured or virtually assured if consumers paid an advance fee of up to $5,500. Shafer and the Perrys, who were principals of Loss Mitigation Services, Inc. (LMS) and Synergy Financial Management Corporation, doing business as Direct Lender or DirectLender.com (Direct Lender), also allegedly misrepresented that the companies were a department of, or affiliated with, the consumer’s lender or mortgage servicer. In addition, Shafer and the Perrys falsely claimed that consumers would receive refunds if LMS or Direct Lender failed to secure a loan modification. In many cases, the defendants failed to obtain loan modifications for consumers, and some consumers lost their homes while waiting for the promised results. (7/15/2009 release http://www.ftc.gov/opa/2009/07/loanlies.shtm.) Under the settlement orders, Shafer and the Perrys are banned from selling mortgage relief services. The orders also impose a $6.2 million judgment that is suspended due to their inability to pay. In addition to the orders against Shafer and the Perrys, the FTC obtained a default order against LMS and Direct Lender, banning them from selling mortgage relief services and ordering them to pay $6.2 million.

Hope Now Modifications. Brothers Salvatore and Nicholas Puglia, Hope Now Modifications LLC, and Hope Now Financial Services Corporation settled FTC charges that they falsely claimed that they could obtain mortgage loan modifications in all or virtually all cases and would refund consumers’ money if they failed, and that they were affiliated with, or part of, the HOPE NOW Alliance, a free federal homeowner assistance program. (3/24/2009 release http://www.ftc.gov/opa/2009/03/newhope.shtm). In addition to banning the defendants from selling mortgage relief services, the settlement order against them permanently bars them from misrepresenting any good or service, violating the Telemarketing Sales Rule, selling or otherwise benefitting from their customers’ personal information, and failing to dispose of their customer information properly. The order also imposes a judgment of almost $5.3 million, which will be suspended when the defendants surrender all of the funds in their bank accounts, which were frozen by the court.

The Commission votes to authorize staff to file the stipulated final orders in Federal Loan Modification Law Center and Loss Mitigation Services were 5-0. The orders were entered by the U.S. District Court for the Central District of California on July 12, 2010, and July 14, 2010, respectively. The Commission vote to authorize staff to file the stipulated final order in Hope Now Modifications was 5-0. The order was entered by the U.S. District Court for the District of New Jersey on July 12, 2010.

NOTE: Stipulated court orders are for settlement purposes only and do not necessarily constitute an admission by the defendants of a law violation. Stipulated orders have the full force of law when signed by the judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

(FTC File Nos. X090041, X090084, X090034)

The marketers of a “Rapid Debt Reduction” program who promised to lower interest rates on credit cards – for an up-front fee of up to $899 – have settled Federal Trade Commission charges that they misled consumers. Under a court order settling the FTC’s case, the pitchmen have been banned from marketing debt-relief services and have agreed to pay $1.5 million that will be used to refund defrauded consumers.

Filed as part of the “Operation Short Charge” law enforcement sweep, the FTC’s complaint alleged that Mutual Consolidated Savings (MCS) and its affiliates and principals used cold calls, pre-recorded “robocalls,” and the Internet to push a phony “Rapid Debt Reduction” program to consumers in the United States and Canada. The defendants convinced consumers to pay $690 to $899 for the program, claiming they would reduce credit card interest rates, save consumers thousands of dollars, and enable them to pay off their debt three to five times faster than they could under their current payment schedule. The FTC also alleged that the defendants failed to honor their money-back guarantee.

In addition, according to the FTC, the MCS defendants called consumers whose telephone numbers were on the Do Not Call Registry, failed to honor consumers’ requests that they not be called again, transmitted fake Caller ID information, failed to identify themselves during telephone pitches, and made illegal robocalls.

The order settling the FTC’s charges bans the defendants from working in the debt relief industry and prohibits them from misleading consumers or helping anyone else mislead consumers about any material facts regarding goods or services they are selling. In addition, they must comply with the agency’s Telemarketing Sales Rule, including not calling consumers on the Do Not Call Registry.

The settlement order also requires the defendants to pay approximately $1.5 million – all of their available assets – that will be distributed to injured customers in the United States and Canada. If they misrepresented their financial condition, the defendants will have to pay the full amount of the alleged consumer injury, $22.5 million.

The FTC vote approving the complaint and proposed settlement order was 5-0. The settlement order was filed on June 14, 2010 in the U.S. District Court for the Western District of Washington at Tacoma and signed by the judge on July 19, 2010. It settles the FTC’s charges against MCS Programs, LLC; United Savings Center, Inc.; and USC Programs, LLC; and their principals, Paul Morris Thompson and Miranda Lynn Cavender.

Law Enforcement Coordination

In investigating and bringing its case against Mutual Consolidated Savings, the FTC received assistance from the Canadian Competition Bureau. Both the Competition Bureau and the FTC are members of the Vancouver Strategic Alliance, a law enforcement task force located in Vancouver, British Columbia, Canada. In carrying out the terms of the court order in Mutual Consolidated Savings, the FTC received assistance from the Police Department of Tacoma, Washington.

NOTE: Stipulated final orders are for settlement purposes only and do not constitute an admission by the defendant of a law violation. Stipulated orders have the force of law when signed by the judge.

Copies of the complaint and final order are available from the FTC’s website at http://www.ftc.gov and from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, click: http://www.ftc.gov/ftc/complaint.shtm or call 1-877-382-4357. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. For free information on a variety of consumer topics, click http://ftc.gov/bcp/consumer.shtm.

(FTC File No. X090066; Civ. No. C09-5380RBL)
(Mutual Consol.final)

The Federal Trade Commission today hosted a roundtable presentation of the Organization for Economic Co-operation and Development’s just-published Consumer Policy Toolkit at FTC headquarters.  This publication will help government policy makers around the world who strive to protect and empower consumers in an increasingly complex global marketplace.

FTC Chairman Jon Leibowitz provided introductory remarks at the roundtable, which was open to the public.  U.S. Ambassador to the OECD Karen Kornbluh discussed the relevance of the guide for U.S. policy makers.  OECD Director of Science, Technology, and Industry, Andrew Wyckoff, also discussed the guide.

The United States is a founding member of the OECD, which is the pre-eminent international forum in which market economies committed to democracy can grapple with economic, social, and governance issues.  The FTC serves as the lead U.S. agency to the OECD’s Committee on Consumer Policy.

The Consumer Policy Toolkit provides advice for consumer protection authorities and other regulators to help them determine where markets may be failing consumers, and what steps they can take in response.  This guide outlines a comprehensive six-step process for choosing the best consumer protection policies, and describes a range of policy options that government officials can use to address consumer problems.  Included in the publication are examples drawn from the experiences of more than 20 countries.

Today’s consumers face unique opportunities – and challenges –from a broader range of increasingly complex products, more global trade, and the development of the Internet.

“The Toolkit will help consumer protection authorities make well-informed policies to protect consumers from unfair practices in the modern marketplace,” said FTC Chairman Leibowitz.  “It will also be a valuable resource for those setting policy for finance, telecommunications, food, drug, and product safety matters.”                                                                                                                                 
“Consumers have more choices than ever before but they often don’t know whom to trust.  The U.S. was pleased to work with the OECD on this Toolkit to help governments empower and protect today’s consumers,” said Ambassador Kornbluh.  “The U.S. is pioneering new ways to empower and protect consumers and we are pleased that the OECD Consumer Policy Toolkit will help all countries adopt best practices.”‪

Government authorities often are under pressure to act quickly on consumer issues.  But deciding what to do has become more difficult because of increasingly complex markets and rapidly evolving business practices – such as those found in electronic commerce.  Policy makers must also keep abreast of developments in behavioral and information economics, as well as new approaches to regulation and enforcement.  This policy making guide addresses these challenges.

The OECD Committee on Consumer Policy already is using this policy making guide to help strengthen consumer protections in electronic commerce, as well as to analyze environmental marketing claims and consumer issues with emerging mobile and online payment systems.

An executive summary of the Consumer Policy Toolkit and a brochure about it can be found as links to this press release and on the FTC’s website at http://www.ftc.gov.  The Consumer Policy Toolkit can be found under the “look inside” button at http://www.oecdbookshop.org/oecd/display.asp?sf1=identifiers&st1=9789264079656.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them.  To file a complaint in English or Spanish, visit the FTC s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357).  The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad.  The FTC s website provides free information on a variety of consumer topics.

(toolkit NR.wpd)

WHO: FTC Chairman Jon Leibowitz

U.S. Ambassador to the Organisation for Economic Co-operation and Development Karen Kornbluh

OECD Director of Science, Technology, and Industry, Andrew Wyckoff

WHEN: Wednesday, July 21, 2010, 10:00 a.m. to 11:00 a.m. WHERE: Federal Trade Commission
600 Pennsylvania Ave., N.W., Room 432
Washington, DC WHAT: The Consumer Policy Toolkit provides advice for consumer protection authorities and other regulators to help them determine where markets may be failing consumers, and what steps they can take in response. This guide outlines a comprehensive six-step process for choosing the best consumer protection policies, and describes a range of policy tools that government officials can use to address consumer problems. Included in the publication are examples drawn from the experiences of more than 20 countries. The OECD is the pre-eminent international forum in which market economies committed to democracy can grapple with economic, social, and governance issues. PRESS: FTC Office of Public Affairs CONTACT: 202-326-2180