WASHINGTON, April 11, 2002 -- The United States Department of Justice, at the request of the Federal Trade Commission, has asked a U.S. District Court judge to stop the allegedly illegal sales practices of magazine telemarketers Cross Media Marketing Corporation, Media Outsourcing, Inc. and three principals of the corporations.
The agencies charge that the telemarketers, which also operate under the name Consolidated Media Services or CMS, are misrepresenting and failing to disclose adequately the costs and conditions of subscription agreements and buying club memberships.
Additionally, the FTC said they are failing to cancel subscriptions and pay refunds and are failing to monitor their independent representatives and discontinue dealing with those who violate federal law.
Judge J. Owen Forrester of the U. S. District Court for the Northern District of Georgia has scheduled an April 30 hearing on the agencies' request for a temporary restraining order.
In documents filed with the court, DOJ and the FTC said they have "Massive and compelling evidence - including tapes of telemarketing calls . . . hundreds of written complaints, and sworn consumer statements . . ." that document the allegations.
