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International Law

: Misleading Advertising Law

Sparta Chem, Inc. and Compu-Kleen Inc Agree to Settle FTC Contempt Charges

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From the FTC Press Release,

Dennis J. Saccurato and his businesses, Sparta Chem, Inc. and Compu-Kleen Inc. of Elmwood Park, have agreed to a settlement with the Federal Trade Commission in which, among other things, they admit that they are in contempt for violating a court order barring them from making fraudulent representations to induce sales of cleaning supplies and shipping and billing for supplies that businesses didn't order.

In 1996, the FTC charged the defendants with telemarketing fraud.

Among other things, the FTC alleged that they made false and misleading representations to get product orders or to obtain information they used later to claim that merchandise was ordered, then shipped merchandise at inflated prices and charged fees that consumers hadn't authorized.

A court settlement required them to comply with the Telemarketing Sales Rule and barred them from further abusive practices.

The proposed settlement announced today resolves contempt charges filed by the FTC against the defendants in 2007, in which they were charged with violating the terms of the settlement.

Under the proposed settlement, the defendants, all based in New Jersey, must, for eight years, digitally record all telephone calls to or from any and all customers in their entirety and preserve the recordings.

They also must promptly transmit intelligible copies of all such recordings to the FTC upon request, and to customers upon their request.

Any money for the ripped off consumers? You need to ask?

"The settlement includes a $2.3 million judgment, which is suspended based on the defendants' inability to pay.

The full judgment will be imposed if they're found to have misrepresented their financial condition. The settlement also imposes record-keeping provisions to allow the FTC to monitor compliance with its order."

Full post as published by Misleading Advertising Law on June 04, 2008 (boomark / email).

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