WebSource Media, BizSitePro, Eversites, Telsource Solutions, and Telsource International

Washington, DC: (Aug-15-07) The US Federal Trade Commission (FTC) brought a lawsuit against WebSource Media, BizSitePro, Eversites, Telsource Solutions, Telsource International, and six individuals, alleging they charged for unwanted Web site services on the phone bills of small businesses and nonprofit groups. The FTC complaint alleged that the defendants violated federal law by charging consumers' telephone bills without obtaining their authorization or consent. The FTC also alleged that the defendants violated federal law by deceptively claiming that if a customer agreed to a free trial Web site, the site would be canceled automatically unless the customer agreed to continue it. The FTC stated that the defendants used telemarketers to make cold calls to small businesses and nonprofits, and offered a supposedly free 15-day trial of Web site design services.

In a settlement reached, the group of interrelated businesses will pay more than $1.2 million to settle the FTC's charges. The companies took nearly $25 million from customers. In July 2007, a judge from the US District Court for the Southern District of Texas in Houston ordered a halt to the operations, appointed a receiver to oversee the business operations and froze the defendants' assets, pending trial. [INFOWORLD: PHONE CRAMMING]

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Published on Aug-17-07