FTC Targets Telemarketing Co. Over Merchandise Scam

Law360, New York (December 10, 2013, 1:32 PM EST) -- The Federal Trade Commission has launched a suit in California federal court alleging a telemarketing company scammed customers into paying for discounted high-end merchandise for resale but then provided low-quality unmarked goods upon delivery and sustained its scheme through frivolous litigation threats.

In a complaint filed Dec. 3, the FTC claims Van Nuys, Calif.-based Cream Group Inc. and its executives would primarily target Hispanic women with Spanish-speaking callers and require customers to pay between $400 and $490 for a shipment of name-brand merchandise, only to continually...
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