February , 2019

Email This Post Email This Post

Attorney General Madigan settles “Cramming” Case

Posted by Admin On September - 26 - 2010
 Company must not solicit or bill any new Illinois consumer for Internet Yellow Page listing
Chicago, IL – Illinois Attorney General Lisa Madigan announced  her office has settled the lawsuit against a Las Vegas corporation over allegations it scammed money from small business owners in Illinois and across the country in a practice known as “cramming.” Cramming describes charges added onto phone bills for services consumers are unaware of, did not order or did not want.
The settlement with YP.com, which incorporated under the name Live Deal, Inc., requires the company not solicit or bill any new Illinois consumers for Internet Yellow Page listings.
“This company operated under a guise of free Yellow Page listings, but in reality was deceiving unsuspecting businesses,” Madigan said. “When business owners attempted to stop the additional charges and cancel the service, they found they couldn’t get through to company representatives.”
The lawsuit against Live Deal for violating the Consumer Fraud and Deceptive Business Practices Act was filed in November 2008. Madigan’s Consumer Fraud Bureau received more than 20 phone bill cramming complaints against YP.com before filing the complaint.
The company’s practice was to call small business owners to “confirm” their information for free Yellow Page listings. In fact, the listings were free for only 30 days. If the consumer did not take action to cancel the service after 30 days, the company crammed a $35.95 monthly fee onto the consumer’s bill. Consumers who tried to cancel this service had difficulty because the customer service line was continually busy.
Under the agreement, Live Deal must also increase transparency to its solicitation practices to better inform consumers of its sales process for any product it intends to sell to Illinois consumers. The court also ordered the company to pay $10,000 and any remaining consumer refunds.
Consumers affected by the scheme have until Oct. 30, 2010, to apply for a refund or credit for unauthorized charges. Small businesses can download a consumer complaint form from the Attorney General’s Web site at www.illinoisattorneygeneral.gov or by calling the Attorney General’s Consumer Fraud Hotline at the following numbers:
Chicago 1-800-386-5438
Springfield 1-800-243-0618
Carbondale 1-800-243-0607
Assistant Attorney General Philip Heimlich is handling the case for Madigan’s Consumer Fraud Bureau in Springfield.
You can leave a response, or trackback from your own site.

Leave a Reply

You must be logged in to post a comment.

Recent Comments

Welcome to CopyLine Magazine! The first issue of CopyLine Magazine was published in November, 1990, by Editor & Publisher Juanita Bratcher. CopyLine’s main focus is on the political arena – to inform our readers and analyze many of the pressing issues of the day - controversial or otherwise. Our objectives are clear – to keep you abreast of political happenings and maneuvering in the political arena, by reporting and providing provocative commentaries on various issues. For more about CopyLine Magazine, CopyLine Blog, and CopyLine Television/Video, please visit juanitabratcher.com, copylinemagazine.com, and oneononetelevision.com. Bratcher has been a News/Reporter, Author, Publisher, and Journalist for 33 years. She is the author of six books, including “Harold: The Making of a Big City Mayor” (Harold Washington), Chicago’s first African-American mayor; and “Beyond the Boardroom: Empowering a New Generation of Leaders,” about John Herman Stroger, Jr., the first African-American elected President of the Cook County Board. Bratcher is also a Poet/Songwriter, with 17 records – produced by HillTop Records of Hollywood, California. Juanita Bratcher Publisher

Recent Posts