LAWSUITS NEWS & LEGAL INFORMATION
Phone Records
New York, NY: (Dec-17-07) The US Federal Trade Commission (FTC) brought charges against CEO Group, doing business as Check Em Out, a web-based company, accusing it of selling people's telephone records without permission. The suit was part of FTC's crackdown of web companies that obtained and sold confidential phone records to third parties. In addition to the settlement with CEO Group, the FTC has settled two other cases and obtained a default judgment against a fourth company. The complaint against the fifth company is still active.
The suit was filed after privacy groups and members of the US Congress filed complaints stating that companies offering phone records over the Internet were calling telephone carriers and pretending to be the targeted customer.
As part of a settlement reached, the FTC barred the company and its operator, Scott Joseph, from marketing or selling phone records, and it requires the company to give up $25,000 of its profits from selling phone records. The settlement, approved by the US District Court for the Southern District of Florida, includes a judgment of $222,381, the amount the company earned by selling phone records, but the defendants said they were able to pay only $25,000. Sources stated that if the court finds that the defendants misrepresented their finances, the entire amount will have to be paid. [INFO WORLD: PHONE RECORDS]
Published on Dec-21-07
The suit was filed after privacy groups and members of the US Congress filed complaints stating that companies offering phone records over the Internet were calling telephone carriers and pretending to be the targeted customer.
As part of a settlement reached, the FTC barred the company and its operator, Scott Joseph, from marketing or selling phone records, and it requires the company to give up $25,000 of its profits from selling phone records. The settlement, approved by the US District Court for the Southern District of Florida, includes a judgment of $222,381, the amount the company earned by selling phone records, but the defendants said they were able to pay only $25,000. Sources stated that if the court finds that the defendants misrepresented their finances, the entire amount will have to be paid. [
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