Nevada Telemarketers Agree To Pay $377,000 To Settle FTC Charges

EDJ Telecommunications, Inc., doing business as International Marketing, a Las Vegas company, and its officers, Judy Burr and David L. Ramos, have agreed to settle Federal Trade Commission charges that they orchestrated a scheme in which consumers were told they would win one of four "extremely valuable" prizes if they purchased materials purported to be part of "Say No To Drugs" or "Say No To Violence" programs. The defendants claimed that the prize would be worth significantly more than what the consumers paid. In fact, according to the FTC, consumers did not receive the promised valuable prizes, or if they did receive something, the items were worth much less than what the consumers had been promised and what they had paid defendants. Under the proposed settlement to these charges, the defendants would pay $377,000 for consumer redress and would be banned from engaging in prize-promotion telemarketing and recovery services.

The above-named defendants were listed as part of a December 1995 nationwide, multi-agency telemarketing sweep called "Senior Sentinel."

In separate settlements to the FTC's charges, the corporate defendant and Burr and Ramos would be permanently banned from engaging in, or promoting, any prize-promotion telemarketing activity or recovery service in the future. The defendants would also be required to pay $377,000 into an interest-bearing escrow account for possible redress. If the Commission determines that redress to consumers is impractical, the money will be deposited into the United States Treasury.

The FTC filed the proposed settlements in the U.S. District Court for the District of Nevada, in Las Vegas, on April 10, 1996. The settlements require the court's approval to become binding. The Commission vote approving the settlements for filing was 5-0.

This case was jointly handled by the FTC's San Francisco Regional Office and the Division of Service Industry Practices.

NOTE: The stipulated final judgments and orders for permanent injunction are for settlement purposes only and do not constitute an admission by the defendant of a law violation. The settlements have the force of law when signed by the judge.

Copies of the proposed settlements, as well as other documents associated with this case, are available from the FTC's Public Reference Branch, Room 130, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580; 202-326-2222; TTY for the hearing impaired 1-866-653-4261. To find out the latest FTC news as it is announced, call the FTC's NewsPhone recording at 202-326-2710. FTC news releases and other materials also are available on the Internet at the FTC's World Wide Web Site at: http://www.ftc.gov

(File No. X960006)

(Civil Action No. CV-S-95-1151-LDG (LRH)