Konkurencja i konsument · 11/10/1996

Budget Marketing, Inc.; Analysis to Aid Public Comment

In settlement of alleged violations of federal law prohibiting unfair or deceptive acts or practices and unfair methods of competition, this consent agreement, accepted subject to final Commission approval, would prohibit, among other things, the Des Moines, Iowa-based telemarketer of magazine subscriptions and 11 of its dealers from misrepresenting that they are selling magazines and the cost and conditions of the subscriptions they are selling. The settlement also prohibits the companies from threatening and harassing consumers to collect bills, failing to honor offers to allow cancellation, and violating the Electronic Funds Transfer Act. A related federal court decree would require the firms to pay a $395,000 civil penalty and $25,000 in court costs. A draft complaint accompanying the consent agreement alleges that the respondents misrepresented the costs and conditions of subscription agreements and illegally deducted charges electronically from consumers' bank accounts without consumer authorization.