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ID # 31395
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12-31-69
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12-31-69
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12-31-69
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12-31-69
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Also in October, a Missouri court sentenced Feder and Stolz to probation and fines, resolving criminal charges of unlawful merchandising practices 99 per minute
The FTC lawsuit, prompted by more than 2,000 consumer complaints, said the psychic service promised a free reading, but consumers calling a toll-free number were directed to a 900 number charging $4
"It was one of the most unbelievable experiences of my life," Scott said , said he and his wife were verbally abused by operators when they called to dispute an $80 phone charge 'Miss Cleo' Settles Federal Suit
Nov 14, 5:17 PM EST
WASHINGTON (AP) â€â€? Trading fortunes told for a fortune lost, the companies behind Miss Cleo's psychic hot line agreed Thursday to forgive $500 million in customer bills to settle a federal lawsuit alleging they fleeced callers hoping to glimpse the future ftc 9 million in bills to Connecticut residents to settle charges of deceptive practices Next they'll be hearing from my attorney gov
Florida attorney general's Web site: http://legal
The two Fort Lauderdale, Fla "
In separate actions, the two Florida companies agreed in October to forgive $1 firn
"I'm no psychic but I can foresee this: If you make deceptive claims, there is an FTC action in your future," he said in announcing the settlement
Miss Cleo's real name is Youree Dell Harris The agency said many consumers received up to 10 calls a day, usually automated messages telling them that "Miss Cleo had a dream about them and they should call back
Thomas Scott, 37, of Tallahassee, Fla
"They're getting out of the business," Beales said
Beales said during three years of operation the service charged people about $1 billion and collected half of it
Florida authorities have a civil case pending against Miss Cleo herself, accusing her of deceptive advertising
The FTC accused the companies of misdeeds including false promises of free psychic readings, tricky billing tactics to squeeze money out of callers and harassing telemarketing calls and Psychic Readers Network Inc "
Sean Moynihan, an attorney for the companies, said the businesses did nothing illegal and were not given enough opportunity by the FTC to explain their practices before the lawsuit was filed
The FTC also accused the service of violating telemarketing rules by harassing people and making calls to those who asked to be on a "do not call" list
Moynihan said the companies still run a small subscription service where customers pay with credit cards to get psychic readings "
The companies did not admit breaking any law but agreed to stop the phone service and forgive about $500 million in outstanding charges "I am elated that the FTC has shut them down
During a deposition in June, Harris repeatedly invoked her Fifth Amendment right against self-incrimination, refusing to discuss a birth certificate showing she was born in Los Angeles to American parents edu/
A woman identified as a Jamaican mystic named "Miss Cleo" offered supernatural insights into love and money The agency said nearly 6 million people made such calls and were charged an average of about $60
Access Resource Services Inc A telephone bill running into the hundreds of dollars was the first sign for many callers that they were being charged "It won't resume
Howard Beales, director of the FTC's consumer protection bureau, said there was no truth in Miss Cleo's prognostications The service represents about 1 percent of the former pay-per-call business, he said They also must return all uncashed checks to customers -based companies â€â€? owned by Steven Feder and Peter Stolz â€â€? promoted a national network of "psychic readers" on television and the Internet Settlements also have been reached in Arkansas, Illinois, Indiana, Kansas, Oklahoma, Pennsylvania and Wisconsin also agreed to stop selling their alleged soothsaying services over the phone and pay the government a $5 million fine, the Federal Trade Commission said
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On the Net:
FTC: http://www
The government said operators made the calls last as long as possible by telling callers they would not be charged while on hold
