- WASHINGTON - American
authorities
have charged television psychic "Miss Cleo" with deceptive
advertising,
billing and collection practices.
-
- Consumers were harassed with 'repeated, unwanted and
unavoidable telemarketing calls'Miss Cleo's ads appear on late night
television
in addition to print, Internet and direct mail advertising. She has
millions
of fans who call her psychic hotline looking for guidance about their
problems.
-
- The Federal Trade Commission says Miss Cleo and her
various
companies have misrepresented the cost of services in their advertising
and during their "readings." The commission says the companies
bill for services that were never purchased and collect the money in a
deceptive way.
-
- The FTC says Miss Cleo's company harassed consumers with
"repeated, unwanted and unavoidable telemarketing calls that consumers
cannot stop."
-
- The agency also says the company responded to inquiries
by consumers with "abusive, threatening and vulgar
language."
-
- "You don't need a crystal ball to know that the
FTC will continue to stop unfair and deceptive trade practices,"
said J. Howard Beales, head of the commission's Bureau of Consumer
Protection.
-
- "When companies make a promise in an ad, they need
to deliver."
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- According to the FTC, Miss Cleo's Psychic Readers
Network:
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- * deceptively represent that a reading will be provided
at no cost
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- * misrepresent the cost of the calls by claiming the
customer's free minutes have not expired or that the customer has been
awarded additional free time or that the customer will not be charged
while on hold
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- * falsely claimed the customer was legally required to
pay for services
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- * engaged in unfair practices by repeatedly calling
customers, including those who had indicated they did not want to be
called
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- The FTC is seeking a temporary restraining order to stop
Miss Cleo from operating until the court rules on the complaints.
-
- The commission is seeking to stop the psychic network
from continuing with its practice and to freeze the company's assets in
order to get some money back to consumers who have been victimized.
-
- A ruling is expected within days.
-
- Named in the FTC complaint are: ARS (Aura
Communications),
Circle of Light, Mind and Spirit, Psychic Readers Network Inc., Steven
Feder and Peter Stolz.
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- Written by CBC News Online staff
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- http://cbc.ca
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