Electronic Media Marketing Group (EMMG), based in Upper Montclair, New Jersey has been ordered to pay $190,000 in penalties by a federal court in Arkansas. In addition, they are banned from operating in Arkansas going forward. In the case, the firm was accused of billing businesses for online advertising that had not been previously authorized.
The marketing group ‘deceived’ business owners by sending them a bill for online ads in the “General Yellow Pages.” Arkansas attorney general, Leslie Ruthledge, said “This company used illegal and threatening tactics to steal money from Arkansas businesses for a service they did not want and in many instances had never heard of in the first place.”
The complaint was filed last year stating that the company was in violation of the Federal Telemarketing and Consumer Fraud and Abuse Prevention Act. EMMG said that the business owners were provided with a free advertising trial, and when they did not cancel the service after the free initial 90 days, they were billed for $599. If the Arkansas businesses did not pay, they would have late penalties applied to the bill, with one reaching over $800.
According to the FTC, this is a type of ‘Directory Listing Scam’ that is fairly common and generally targets small to mid-sized companies and other organizations. There is no word yet on whether EMMG will appeal the judgment.