Organization seeks to combat telephone advertising scheme

Jim Chamberson of Augusta was one of several merchants who contacted COMBAT last week after Maine corporate mailboxes were peppered with “window” envelopes that appeared to contain a check. The letters, from “Yellow-Page.net” of Mesa, Ariz., contain a First State Bank check for $3.17 made out to the recipient.

Since no one gives cash away without strings attached, you would think Chamberson would have checked further. But he is a busy guy and recently had closed a legitimate telephone advertising account. Assuming the check was a refund for overpayment, he was just about to sign it for pocket change when he more closely examined the wording on the reverse (signature side).

Just above the signature line were the following words: “Please list my company’s information as shown on this check on the Yellow-Page.net Internet Web site. I am over 18, and authorized to place this advertisement by depositing this check and by doing so I agree to pay $17.95 per month for this advertisement. I agree to the Terms of Offer which were enclosed with this check and authorize Telco Billing, Inc. to bill such fees in advance, on the company’s phone bill or by debiting the fee from the company’s bank account into which this check is deposited or by other methods.”

Chamberson put the check in an envelope and sent it to COMBAT asking, “Can Yellow-Page.net get away with this kind of fraud?”

Well, the answer is yes, they can get away with this sneaky business if busy merchants or bookkeepers sign the check for deposit without reading it closely because it was buried in a stack of other work. We think that’s what Yellow-Page.net hopes will happen.

While not an outright fraud, this practice is so sneaky that it ought to be. Just read Yellow-Page.net’s words and think about them. Had Chamberson signed and cashed the check, Yellow-Page.net then could have begun electronic deductions of $17.95 out of Chamberson’s company checking account or added the fee to his legitimate telephone bill forever … or at least until he noticed. It doesn’t take much imagination to consider how easy it would be for a busy company with numerous active accounts to miss this $17.95 entry in its checking account statement or on its telephone bill.

We think that’s exactly what Yellow-Page.net wants. In our opinion, the practice is a modified telephone “slamming” scheme.

The Federal Trade Commission reserves the authority to take action against advertising practices that have the “capacity” to mislead. For that reason, COMBAT’s Maine Center for the Public Interest has asked the FTC to investigate Yellow-Page.net’s practices.

If you receive one of these checks, send it to Forum along with your business card containing the words “Go get em!” and your signature on the reverse side. We will collect responses and forward them to the FTC in support of our request for action.

Volunteer opportunities: COMBAT, Consumers Of Maine Bringing Action Together, is recruiting mediation and assistance volunteers for our spring training session. Help protect Maine families and merchants against fraud and deception by donating a few hours of time. Write to the address below or call 947-3331 and press “Option 2” for volunteer opportunities and an application.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast COMBAT/The Maine Center for the Public Interest, Maine’s membership-funded nonprofit consumer organization. For help or to request individual or business membership information write: Consumer Forum, Bangor Daily News, P.O. Box 1329, Bangor 04402-1329.