Attorney General's News Release

August 3, 1999

California business agrees to pay state $90,000, repay customers "slammed" in long distance scam

Independence, Mo. — Two California companies that used deceptive telemarketing tactics to switch, or "slam," the long distance service of Missouri consumers, have agreed to issue refunds to consumers and pay the state of Missouri $90,000 in order to resolve a lawsuit brought by Attorney General Jay Nixon.

In his 1998 lawsuit, Nixon said that agents of Business Discount Plan Inc., or BDP, and National Marketing Center Inc. called consumers and represented themselves as being with AT&T or with the consumers' current long distance carrier and offered discounts on behalf of those companies. The companies often misrepresented the cost of their long distance rates, switched consumers' long distance service without the consent of the consumer and refused to respond to consumer inquires. The Attorney General's Office received more than 100 complaints about the companies.

The companies have agreed to switch consumers back to their original long distance carriers, to reimburse consumers for any switching or service fees, and to refund monies paid to the companies. The companies also must pay the state of Missouri $90,000 to be used for future consumer protection activities.

"This agreement is a real victory for Missouri consumers," Nixon said. "I hope it sends a message to any other company that would try to slam consumers' long distance that we will go after them."

BDP and National Marketing Center currently are not solicting new customers in Missouri.

Consumers who feel that their long distance service has been switched without their authorization should call the Attorney General's Consumer Protection Hotline at 800-392-8222.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818