Refunds Available For Deceptive Internet Yellow Pages Ads
Thousands of former customers of YP.com who were deceptively led to activate automatic monthly payments for Internet advertising packages are eligible to file claims for refunds under a settlement reached by the Office of the Attorney General.
More than 65,500 businesses and nonprofit organizations in California were found to have received and deposited the automatic “activation checks” since January 1, 2003. Businesses and nonprofit groups have six months to their file claims for refunds. Each former customer could receive restitution for up to four months of fees paid that ranged from $24 to $29 per month.
To file a claim, businesses and nonprofit groups should write the Attorney General’s Public Inquiry Unit at P.O. Box 944255, Sacramento, CA 94244-2550 or use the
online consumer complaint form
.
Under the settlement, California will receive $200,996 to provide refunds. Any unclaimed funds will be used for consumer protection investigations by the Attorney General.
The settlement also requires YP to notify current customers who are still paying fees for Internet Yellow Page ads that can cancel the plan and obtain refunds of two months’ payment. Additionally, YP is prohibited from using activation checks in marketing its services and cannot pursue collection of unpaid IAP fees from customers whose accounts were initiated by depositing an activation check.
Incorporated in Nevada, YP provides standard online business listings, using information purchased from other sources. In offering enhanced Internet advertising, IP sent “activation checks” in direct mail marketing to customers who upon depositing the checks for $3.25 to $3.50 triggered an agreement to pay monthly fees for the web advertising packages. The activation checks authorized the automatic collections from the customer’s bank account or phone bill. According to the Attorney General, the marketing practices relating to the activation checks involved unfair business practices and false or misleading advertising.
 
