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Forum| Posted: 02/09/2004 | Company to Repay Customers for Web Claims
| Original Source:
WASHINGTON - A Texas company agreed to repay customers $815,000 to resolve federal charges that it failed to deliver on Internet promises of providing major credit cards for a fee, regulators said Monday.
The Federal Trade Commission said that ClickForMail.com Inc., doing business as AllPreApproved.com, sent e-mail "spam" offering approved credit cards in exchange for an advance payment of $49.95. Thousands of people who paid the fee did not get the credit cards, the FTC said.
Messages left with an attorney for the company were not immediately returned. A message posted on the AllPreApproved.com Web site said the company was cooperating with the FTC and had suspended its sales and promotions.
By settling, the Austin-based company does not acknowledge breaking any law.
Consumers who responded to the e-mail clicked on a link to the company's Web site and had the fee deducted from their checking accounts before they received the promised credit card, the FTC said.
Under the settlement, the company is prohibited from making false claims about credit cards and selling its customer lists.
The FTC approved the settlement with a 5-0 vote and announced it Monday. The U.S. District Court for the Northern District of Illinois approved the agreement last Thursday.
If the court finds that ClickForMail.com misstated its financial condition, the company could be made to pay $3.6 million, the FTC said. |
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