Tuesday, April 25, 2006

Score one for the little guys! Massachusetts Attorney General: Full Article

It's about time! The Massachusetts Attorney General finally shut down Yellow Pages Inc., a "reputed" scam operation that tricked thousands of small businesses into paying for bogus Yellow Pages advertising.

Massachusetts Attorney General: Full Article: "AG REILLY REACHES SETTLEMENT WITH YELLOW PAGES, INC., RESOLVING ALLEGATIONS OF CONSUMER DECEPTION
Company Used Promotional Checks to Lure Consumers into Purchasing Ads
April 25, 2006
CONTACT: SARAH NATHAN
(617) 727-2543

BOSTON - A Nevada-based corporation with principal offices in Anaheim, California accused of luring Massachusetts consumers and small business owners into unknowingly purchasing on-line directory listings through the use of promotional checks must put an end to the deceptive practice, Attorney General Tom Reilly announced today.

Under the terms of a multi-state agreement reached with Massachusetts and 27 other states, Nevada-based Yellow Pages, Inc., California-based Electronic Directories Company, LLC, and John Wurth, president of these companies, are prohibited from using promotional checks to bait consumers and small business owners into buying listings in their directories. The checks, according to AG Reilly's settlement, filed today in Suffolk Superior Court, did not clearly explain that, by cashing them, consumers were committing to pay for an annual listings in Yellow Pages publications. Those consumers who cashed these checks were later hit with a bill averaging $179.

'Consumers and small business owners must be wary of live check promotions,' AG Reilly said. 'Promotional checks are almost always used to lure consumers into making a much bigger purchase. In this case, by cashing a check for very little money - $2 or $3 - consumers were unknowingly purchasing advertising with this company.'

According to AG Reilly's settlement, Yellow Pages used checks, described as 'instant cash back offers,' to lure consumers and small business owners into contracting for annual advertising listings in an online directory and printed publication. The face of the checks gave no indication that if cashed, it would commit the consumer to paying for an online directory listing. The information on the"

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