Friday, October 01, 2010

Court Shuts Down Huge Internet Fraud 'Cramming' Operation


A federal court has permanently shut down the illegal operations of Inc21, a firm that placed bogus charges on the telephone bills of thousands of small businesses and consumers for Internet-related services they never agreed to buy.

The court, at the request of the Federal Trade Commission (FTC) has barred the defendants from charging consumers' telephone bills and prohibits them from telemarketing unless they get prior approval from the FTC and the court.

It also ordered third parties through which charges were placed -- including local exchange telephone companies, or LECs -- to return money in escrow to consumers, and ordered the defendants to pay nearly $38 million in restitution for consumers.

More here.


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