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Telemarketers Barred from Falsely Telling Consumers That Proceeds from the Sale of Household Goods Will Benefit Charities or the Disabled

An Arizona-based telemarketing operation that identified itself as “Helping Hands of Hope” has settled charges that it conned consumers into buying household items such as light bulbs and trash bags that were priced substantially higher than at retail, by falsely promising the proceeds would benefit charities or the disabled. The defendants will be permanently barred from such fraudulent conduct and from calling consumers who have asked not to be called.

According to the FTC’s complaint, filed in May 2008 as part of the “Operation Tele-Phoney” multi-agency law enforcement sweep against telemarketing fraud, the Helping Hands of Hope defendants used telemarketing to target consumers nationwide, including many who were elderly. In addition to making false promises, Helping Hands’ telemarketers harassed consumers who resisted buying products, sent consumers products they never ordered, and then claimed that they had, in fact, ordered them, the complaint alleged. Finally, the FTC charged that Helping Hands’ telemarketers violated the National Do Not Call Registry rules by calling consumers even after they had asked not to be called again.

The court order settles the FTC’s charges against Helping Hands of Hope, Inc.; U.S. Blind Services, Inc.; Employment Opportunities of America, Inc.; Third Strike Employment, Inc.; and Robyn Mayhan. It prohibits the defendants from misrepresenting, or assisting anyone else in misrepresenting, that:

a consumer’s purchase will benefit handicapped or disabled people;
anyone working for the companies is handicapped or disabled;
any of the companies’ products are made or packaged by the handicapped or disabled;
or that any company operates a charitable organization.

The order also bars the defendants from mailing or billing consumer for any merchandise they did not order. Further, Helping Hands and the other defendants are prohibited from violating the FTC’s Telemarketing Sales Rule, including calling any number that is on the National Do Not Call Registry, calling consumers who have asked not to be called again, and failing to pay the annual fee required to access the Registry.

Finally, the order imposes a judgment of $26.3 million against all of the defendants. The corporate defendants will turn over assets worth more than $60,000 in partial satisfaction of the judgment. The judgment against Mayhan, the companies’ president, has been suspended based on her inability to pay. She will have to pay the full amount if she is later found to have misrepresented her financial condition.

The Commission vote authorizing the staff to file agreed-upon final order in consent of the court action was 4-0. It was filed in the U.S. District Court for the District of Arizona, on April 1, 2010, and entered by the Court on April 6, 2010.

NOTE: This stipulated final order is for settlement purposes only and does not constitute an admission by the defendant of a law violation. A stipulated final order requires approval by the court and has the force of law when signed by the judge.

Copies of the stipulated final order are available from the FTC’s Web site 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.

(Helping Hands.wpd)
(FTC File No. X080048; Civ. No. CV-08-0909-PHX-JAT)

Make the Most of Your Money During Financial Literacy Month

April is Financial Literacy Month, and the Federal Trade Commission, the nation’s consumer protection agency, has information to help you make the most of your money whether you’re a student, young adult, parent, older person, or military service member.

“There’s no time like the present to learn proven money-management skills,” said David C. Vladeck, Director of the FTC’s Bureau of Consumer Protection. “Financial Literacy Month is an ideal time to learn – or teach others – the importance of consumers’ rights, and the best way to file a complaint if something goes wrong.”

Information from the FTC can help people explore how advertising affects them; understand credit, credit reports, and credit scores; get tips on how to protect their personal information and minimize the risk of identity theft; shop for a home loan; learn their rights when dealing with a debt collector; explore how advertising affects them; and much more.

ftc.gov/moneymatters, offers short, practical tips, videos, and links to reliable sources on a variety of topics in English and Spanish, ranging from credit repair, debt collection, job hunting, and job scams to vehicle repossession, managing mortgage payments, and avoiding foreclosure rescue scams.
ftc.gov/freereports offers details about a consumer’s right to a free copy of his or her credit report from each of the three national credit reporting agencies, upon request, once every 12 months. Reviewing one’s credit report regularly is an effective way to deter and detect identity theft.
ftc.gov/youarehere is a virtual mall where kids experience the FTC’s mission by learning about advertising, competition, and how to protect their privacy.

All of the FTC’s financial literacy materials are in the public domain. They can be
posted, reprinted, or adapted to educate people about their consumer rights.

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 Charges Payday Lender with Deceiving Employers in Scheme to Collect Debts

The Federal Trade Commission has charged a payday loan operation with illegally trying to garnish borrowers’ wages and using other illegal debt-collection practices. The FTC seeks to stop these practices and require the operators to surrender improperly collected money so it can be used for consumer refunds.

According to the FTC’s complaint, the operators do business as Ecash and GeteCash, offering loans of up to $1,000 to be repaid from a borrower’s upcoming paycheck. They require online loan applicants to check a box indicating their agreement with loan terms. These terms include an inconspicuous statement consumers often don’t see, which states that their wages will be garnished to cover delinquent loan payments. The statement allegedly attempts to circumvent federal requirements, including a debtor’s right to revoke a garnishment agreement.

U.S. law allows federal agencies to require employers to garnish employees’ wages without a court order when the employees owe the government money. According to the complaint, in letters to employers, GeteCash tries to pass itself off as having the same collection rights as the government. The FTC’s complaint also alleges that GeteCash falsely stated that consumers knew their pay would be garnished and had an opportunity to dispute the debt. In addition, GeteCash allegedly violated the law when it told employers and co-workers about consumers’ debt without their consent.

The FTC alleges that, in carrying out their scheme, the operators violated the FTC Act, the Fair Debt Collection Practices Act, and the Credit Practices Rule. The defendants are Eastbrook LLC, also doing business as Ecash and GeteCash; LoanPointe LLC; Joe S. Strom; Benjamin J. Lonsdale; James C. Endicott; and Mark S. Lofgren. Eastbrook, LoanPointe, and Strom have agreed to a preliminary injunction barring them from further unlawful practices.

The Commission vote to file the complaint was 4-0. It was filed in the U.S. District Court for the District of Utah, Central Division on March 15, 2010.

The FTC would like to acknowledge the assistance of the Financial Management Service of the U.S. Department of the Treasury and the Idaho Department of Finance.

NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendants have actually violated the law.

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 No. 102-3021)
(GeteCash)

FTC Approves Final Settlement Orders Regarding Boulder Valley IPA and M. Catherine Higgins; Commission Submits Comments on Measuring the Performance of Electric Regional Transmission Organizations and on FERCs Method of Assessing Partial Acquisitions

FTC Approves Final Settlement Orders Regarding Boulder Valley IPA and M. Catherine Higgins

Following a public comment period, the Federal Trade Commission has approved final settlement orders in the matters of Boulder Valley Individual Practice Association (BVIPA) and its executive director, M. Catherine Higgins, and sent letters to members of the public who submitted comments on the BVIPA order. The separate final orders settle charges that the association and Higgins, acting both in her official capacity and independently, orchestrated and carried out agreements among BVIPA’s members to refuse, and threaten to refuse, to deal with insurance providers, unless they raised the fees paid to the groups’ doctors.

The FTC vote approving the BVIPA final order was 4-0 and the vote approving the Higgins final order was 3-1, with Commissioner J. Thomas Rosch voting no. (FTC File No. 051-0252; the staff contact is Gary H. Schorr, Bureau of Competition, 202-326-3063. See press releases dated December 24, 2008, at http://ftc.gov/opa/2008/12/allcare.shtm and February 5, 2010, at http://www.ftc.gov/opa/2010/02/bouldervlly.shtm.)

Commission Submits Comments on Measuring the Performance of Electric Regional Transmission Organizations and on FERC’s Method of Assessing Partial Acquisitions

The Federal Trade Commission has submitted two sets of comments to the Federal Energy Regulatory Commission (FERC): one addressing the best ways for FERC to measure the performance of regional transmission organizations (RTOs) and independent system operators (ISOs), and the other on the method FERC uses to assess how partial acquisitions of electric power providers affect competition. RTOs and ISOs are organizations responsible for interstate electricity transmission over large geographic areas.

The FTC’s first comment was submitted in a FERC proceeding designed to determine the best ways to measure the performance of RTOs and ISOs. FERC recently issued a notice requesting comments and listing several performance measures it had developed. Although the FTC agrees that developing and tracking the performance of RTOs and ISOs is a worthy goal, the comment points out that the criteria FERC has proposed do not measure all of the “minimum characteristics and functions” of RTOs and ISOs that FERC previously laid out. The comment discusses the detrimental consequences that could arise if performance measures do not appropriately correspond to minimum characteristics and functions.

The comment recommends that FERC select performance measures that assess RTOs’ and ISOs’ adherence to the minimum characteristics and their performance of the required functions. In addition, it urges FERC to consider assessing the efficiency of RTO and ISO operations and their responsiveness to the grid users and the retail electricity customers they serve. An accurate assessment of generator market power, the comment concludes, could be a useful performance measure for FERC’s policy choices.

The FTC’s second comment stems from a proposal that FERC modify the way it determines whether partial acquisitions may harm competition. The Electric Power Supply Association (EPSA) had asked FERC to clarify its policy on how large a stake an investor may buy in an electricity provider before FERC deems the investor to be in “control” – and thus not eligible for blanket approval of proposed transactions, and not exempt from competition review. Specifically, EPSA asked FERC to determine that transactions would remain eligible for this kind of streamlined treatment so long as the investor: 1) owns less than 20 percent of the acquired company’s voting securities; and 2) certifies, through a filing with the Securities and Exchange Commission, that the investment is not for the purpose of controlling the company whose shares are acquired.

FERC responded to EPSA’s request by issuing a notice of proposed rulemaking that would extend its blanket approvals and competitive review exemptions to acquirers of 10 percent or more – but less than 20 percent – of a public utility’s securities, so long as the acquirer affirms that its purpose in holding the securities is not to change or influence the control of the issuing utility.

In addition to the specific affirmations that FERC would require in this process, the FTC’s new comment recommends that FERC require two further certifications: 1) that the acquirer does not compete in the same electricity markets as the issuer of the acquired voting securities; and 2) that the acquirer does not own or control certain inputs to the production of electric energy in the same markets as the issuer. These certifications, the FTC states, would help ensure that a partial transaction does not create adverse incentives to harm competition, and they would reinforce other provisions FERC has already proposed.

The vote authorizing the filing of each comment was 4-0. (FTC File Nos. V100008 and V090008; the staff contact is John H. Seesel, Associate General Counsel for Energy, Office of General Counsel, 202-326-2702.)

Copies of the documents mentioned in this release are available from the FTC’s Web site at http://www.ftc.gov and from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. Call toll-free: 1-877-FTC-HELP.

(FYI 14.2010.wpd)

FTC Tips for Consumers Weighing How to Settle Their Credit Card Debts

Consumers with overwhelming credit card debt may be tempted to seek help from companies that promise to erase their debt for pennies on the dollar, but the Federal Trade Commission urges caution.

In a new consumer publication, Settling Your Credit Card Debts, the FTC says that there is no guarantee that debt settlement companies can persuade a credit card company to accept partial payment of a legitimate debt. Even if they can, clients must put aside money for their creditors each month and may have to pay hefty fees up front to the debt settlement company – putting them further in the hole before they get any relief.

The publication lists additional red flags to watch out for from companies that promise to settle credit card debt, and discusses practical no-cost and low-cost options for help, including dealing with creditors directly and contacting a credit counselor.

To learn more about getting out of the red without spending a whole lot of green, go to ftc.gov/bcp/edu/pubs/consumer/credit/cre02.shtm.

The FTC, the nation’s consumer protection agency, has free information to help consumers with their personal finances. Visit www.ftc.gov/MoneyMatters to learn more.

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.

(FYI debt settlement)

Julie Brill Begins Term at Federal Trade Commission

Julie Brill assumed her position as a Commissioner on the Federal Trade Commission today after being sworn in by FTC Chairman Jon Leibowitz. President Obama named Brill, a Democrat, to a term that expires September 25, 2016. She was unanimously confirmed by the U.S. Senate on March 3, 2010.

“I’m thrilled to have Commissioner Brill join the FTC,” said Leibowitz. “Throughout her career, she has demonstrated a strong commitment to many of the critical issues we focus on for American consumers. Her experience and dedication will serve the Commission – and the public – extremely well.”

Prior to becoming a Commissioner, Brill was the Senior Deputy Attorney General and Chief of Consumer Protection and Antitrust for the North Carolina Department of Justice, a position she held since February 2009. Brill has also been a Lecturer-in-Law at Columbia University’s School of Law. Prior to her move to the North Carolina Department of Justice, Brill was an Assistant Attorney General for Consumer Protection and Antitrust for the State of Vermont for over 20 years (1988-2009). Brill has received several national awards for her work protecting consumers. She has testified before Congress, published numerous articles, and served on many national expert panels focused on consumer protection issues such as pharmaceuticals, privacy, credit reporting, data security breaches, and tobacco. Brill has also served as a Vice-Chair of the Consumer Protection Committee of the Antitrust Section of the American Bar Association since 2004.

Prior to her career in law enforcement, Brill was an associate at Paul, Weiss, Rifkind, Wharton & Garrison in New York (1987-1988), and she clerked for Vermont Federal District Court Judge Franklin S. Billings, Jr. (1985-1986). Brill graduated, magna cum laude, from Princeton University (1981), and from New York University School of Law (1985), where she had a Root-Tilden Scholarship for her commitment to public service.

Edith Ramirez Sworn In as Federal Trade Commissioner

Federal Trade Commission Chairman Jon Leibowitz welcomed Edith Ramirez as an FTC Commissioner at her official swearing-in ceremony today. President Obama named Ramirez, a Democrat, to a term that ends on September 25, 2015. She was unanimously confirmed by the U.S. Senate on March 3, 2010.

“I’m delighted to welcome Commissioner Ramirez to the FTC,” Leibowitz said. “Edith is a talented litigator with a strong commitment to public service and I’m sure her contributions to upholding our mission of antitrust enforcement and consumer protection will be tremendous.”

Prior to joining the FTC, Ramirez was a partner at Quinn Emanuel Urquhart & Sullivan, LLP in Los Angeles, where she handled a broad range of complex business litigation, including successfully representing clients in intellectual property, antitrust and unfair competition matters. She also has extensive appellate litigation experience.

From 1993-1996 she was an associate at Gibson, Dunn & Crutcher, LLP, in Los Angeles and clerked for the Hon. Alfred T. Goodwin in the United States Court of Appeals for the Ninth Circuit from 1992-1993.

Ramirez graduated Harvard Law School cum laude (1992), where she served as an editor of the Harvard Law Review, and holds an A.B. in History magna cum laude from Harvard-Radcliffe College (1989).

Don’t Get Scammed by Phony Census Takers

With the 2010 Census underway, the Federal Trade Commission wants consumers to steer clear of con artists who pretend to be Census takers but are really out to steal personal information or commit some other type of fraud.

The FTC, the nation’s consumer protection agency, tells you what to watch for in a new Consumer Alert, How to Recognize and Report 2010 Census Scams. The Census is administered only through the mail and in person. Census takers do not ask for Social Security numbers, credit card information, or other sensitive data. To learn more about how the Census works and how to avoid and report scams, go to http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt175.pdf.

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.

(FYI census scams)

Want a Census Job? Don’t Get Swindled

The U.S. Census Bureau is filling thousands of temporary, part-time jobs as 2010 Census takers. But job seekers should steer clear of anyone who tells them they need to pay in order to get information on how to apply for work on the Census, or any federal job. No one can “guarantee” a federal job in exchange for a fee.

In a new consumer publication, 2010 Census Job Scams, the FTC provides detailed information about applying to become a U.S. Census taker, and it tells consumers how to access all federal job announcements. To learn more, go to http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt176.shtm.

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.

(FYI census job scams)

FTC Issues 2010 Fair Debt Collection Practices Report to Congress

At a time when many consumers are facing debt problems, the Federal Trade Commission has issued its annual report detailing the steps the agency has taken to protect consumers from unfair, deceptive, and abusive debt collection practices and educate the public on the subject. The 32nd Annual Report to Congress on the Fair Debt Collection Practices Act presents, for 2009, an overview of the types of consumer complaints received by the FTC, descriptions of the agency’s debt-collection law enforcement actions, and a summary of its consumer and industry education efforts and research and policy initiatives. The FDCPA prohibits deceptive, unfair, and abusive practices by third-party debt collectors. The FDCPA requires the FTC to submit annual reports to Congress. The Commission vote to issue the report was 4-0. (FTC File No. P104802; the staff contact is Ron Isaac, Bureau of Consumer Protection, 202-326-3231.)

Copies of the report are available from the FTC’s Web site, http://www.ftc.gov, and the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. Call toll-free: 1-877-FTC-HELP.

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