Florida Agencies, FTC Announce Local Results for National Telemarketing Sweep

National operation includes more than 180 actions against instances of telemarketing fraud

May 20, 2008 -- TALLAHASSEE, FL – Florida Attorney General Bill McCollum, Florida Agriculture and Consumer Services Commissioner Charles H. Bronson, the Federal Trade Commission (FTC), and a series of Florida partners today announced the results of a national telemarketing fraud sweep, including several actions taken throughout Florida over the past few months.

Nationwide, authorities believe more than 500,000 consumers have been affected by the 180 cases unveiled today, which may have defrauded victims out of approximately $100 million. The Florida actions included five agreements totaling more than $126,000 in reimbursements for consumers and charitable donations, 12 arrests, and one lawsuit filed against a Clearwater company accused of engaging in deceptive and unfair practices by marketing and charging for "foreclosure consulting services" but failing to provide the assistance promised.

"Telemarketing is not only annoying, but it can be deceptive and sometimes blatantly illegal," said Attorney General McCollum. "Consumers deserve to be protected and this cooperative effort exemplifies what our federal, state and local partners can do with combined resources for the good of our citizens."

The Florida Attorney General enforces Florida's Unfair and Deceptive Trade Practices Act and other laws applying specifically to telemarketing. Among the areas being investigated are the credit and debt consolidation business, the sale of catalog credit cards, and the timeshare advertising and sales industries. The Florida Attorney General's office is also investigating the mortgage foreclosure rescue industry, which is also being widely marketed through telemarketing sales. Consumer surveys conducted by the FTC showed that consumers in financial distress or on fixed incomes were targeted, as were senior citizens. African American and Hispanic consumers also reported more fraud.

"Operation Tele-Phoney" is the largest sweep of telemarketing frauds cases ever coordinated by the Federal Trade Commission, with more than 180 actions being announced today. The comprehensive attack on telemarketing fraud was launched by the FTC, the U.S. Department of Justice, the U.S. Postal Inspection Service, state Attorneys General and other state enforcement authorities, and the Competition Bureau in Canada and other Canadian law enforcement agencies. Florida agencies involved in the sweep include the Florida Department of Agriculture and Consumer Services, the Pinellas County Department of Justice and Consumer Services and the Clearwater Police Department.

"The sheer breadth of 'Operation Tele-Phoney' is a testament to the ability of law enforcement agencies at all levels to work together effectively to help protect consumers both in the United States and abroad," FTC Chairman William E. Kovacic said. "I'd like to personally thank all of our partners in this sweep for helping to eradicate the scourge of telemarketing fraud."

Under "Operation Tele-Phoney," the FTC has filed more than 10 new telemarketing fraud cases; each FTC region has filed at least one. Authorities estimate that consumers will save $30 million next year as a result of these cases. Florida's actions announced as part of "Operation Tele-Phoney" include lawsuits, cease and desist orders, settlements, and assurances of voluntary compliance. The actions are against telemarketers pitching magazine subscriptions, medical prescription programs, automobile warranties, etc. A complete list of Florida-based actions is available online at: http://myfloridalegal.com/webfiles.nsf/WF/MRAY-7ETGX3/$file/TelePhoneyFLActions.pdf.

In March and April 2008, Florida Agriculture and Consumer Services Commissioner Charles H. Bronson's department led a major sweep of telemarketing boiler rooms in five Florida counties, with assistance from the Attorney General's Office and the Pinellas County Department of Justice and Consumer Services. These actions were included in the national statistics for "Operation Tele-Phoney," among which are 42 indictments, 32 guilty pleas or convictions, and 17 sentencings, four of which resulted in prison terms for 10 years or longer.

"Illegal boiler rooms that prey on citizens are unfortunately all too commonplace," said Commissioner Charles Bronson. "This sweep shows that we will go after them wherever we find them."

In addition to announcing the cases today, the FTC and its partners unveiled a consumer protection initiative designed to educate consumers about telemarketing fraud and help report fraud to the authorities. The campaign features a new website and two short videos located at http://www.ftc.gov/phonefraud and http://www.YouTube.com/ftcvideos and is also available in Spanish. To recognize and avoid telemarketing fraud, consumers are encouraged to ask the following questions:

-Who's calling and why? Telemarketers must state they are making a sales call, provide the name of the seller, and explain what they're selling before they make their pitch. If they don't provide the required information, get off the phone.
-What's the hurry? Fast talkers who use high pressure tactics could be hiding something. Most legitimate businesses will provide time and written information about an offer before asking consumers to commit to a purchase.
-If it's free, why are they asking for a payment? Question any charges needed to redeem a prize or gift. If there is a price involved, it's a purchase – not a prize or a gift.
-Why am I "confirming" my account information – or giving it out at all? Some callers have a consumers' billing information before they call and need the consumers to acknowledge the information so they claim the charges were approved. Do not provide any account information over the phone.
-What time is it? The law allows telemarketers to only call between 8:00 a.m. and 9:00 p.m. A seller calling earlier or later is flouting the law.
-Isn't there a National Do Not Call Registry? Placing phone numbers on the Do Not Call Registry will stop most telemarketing calls – but not all. Calls from sales people from unfamiliar businesses may be the sign of a scam.

Consumers are also encouraged to report phone fraud and Do Not Call violations. Telemarketing or phone fraud may be reported to the Attorney General's Office online at http://myfloridalegal.com or by calling 1-866-966-7226. Florida also operates the nation's first "Do Not Call" list, and consumers can call 1-800-HELP-FLA (435-7352) or visit the Division of Consumer Services' website at http://www.800helpfla.com to get more information about the program or instructions on how to sign up for it. A call to the same toll-free hotline can be used by consumers to determine if a telemarketer is registered in Florida or for information on how to file a complaint against such a business.

Florida's Complaints may also be reported to the FTC online at http://www.FTC.gov or by calling 1-877-FTC-HELP. Violations of the National Do Not Call Registry may be reported online at http://www.DoNotCall.gov or by calling 1-888-382-1222. More information is available online at: http://myfloridalegal.com/webfiles.nsf/WF/MRAY-7ETGWG/$file/FTC_Fraud_Brochure_FL.pdf.

Source: Florida Attorney General

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