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Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: bigbuk who wrote (10749)	11/15/2002 12:21:26 PM
From: xcr600	Read Replies (1) \| Respond to of 19428

Miss Cleo psychic hot line forgives $500 million in customer debts Associated Press Published Nov. 15, 2002 PSYC15 WASHINGTON, D.C. -- Trading fortunes told for a fortune lost, the companies behind Miss Cleo's psychic hot line agreed on Thursday to forgive $500 million in customer bills to settle a federal lawsuit alleging they fleeced callers hoping to glimpse the future. Access Resource Services Inc. and Psychic Readers Network Inc. also agreed to stop selling their alleged soothsaying services over the phone and pay the government a $5 million fine, the Federal Trade Commission (FTC) said. The two Fort Lauderdale, Fla.-based companies -- owned by Steven Feder and Peter Stolz -- promoted a national network of "psychic readers" on television and the Internet. A woman identified as a Jamaican mystic named "Miss Cleo" offered insights into love and money. Miss Cleo's real name is Youree Dell Harris. 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. Howard Beales, director of the FTC's consumer protection bureau, said there was no truth in Miss Cleo's prognostications. "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. 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. The companies did not admit breaking any law but agreed to stop the phone service and forgive about $500 million in outstanding charges. They also must return all uncashed checks to customers. Beales said that during three years of operation, the service charged people about $1 billion and collected half of it. "They're getting out of the business," he said. "It won't resume." Sean Moynihan, an attorney for the companies, said the businesses did nothing illegal and were not given enough opportunity to explain their practices before the suit was filed. The FTC suit, 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 $4.99 per minute. The agency said nearly 6 million people made such calls and were charged an average of about $60. The government said operators extended calls by telling callers they would not be charged while on hold. A phone bill in the hundreds of dollars was the first sign for many callers that they were charged. The FTC also accused the service of violating telemarketing rules by harassing people and making calls to those who asked to be put on a "do not call" list.