Modern Technology Inc.

Also known as: Online Local Yellow Pages.

The FTC alleged that Modern Technology Inc. and related defendants billed small businesses and churches for unwanted online directory listings and used collection threats. A court entered a default judgment based on consumer losses.

1Official action

$15.6MAlleged consumer losses

$15.6MRedress ordered

2Business names used

Resolved. Refunded, settled, ceased operating, or the claim did not hold up. Kept for the record.

Identity

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Registrations: FTC v. Modern Technology Inc. (FTC case 132-3144, 2013)
Locations: Montreal
Jurisdictions: United States (federal)

Directory billing case ended with a default judgment and refunds

Modern Technology Inc., doing business as Online Local Yellow Pages, was one of 15 companies in a Montreal operation that sold online business directory listings. The FTC alleged that the defendants called small businesses and churches while pretending to verify information for existing listings or cancellation requests, even though they had no prior relationship with the consumers.

The defendants then sent bills averaging $499.99 or more. Some consumers paid because they believed someone in their organization had ordered a listing. The complaint alleged that the defendants used partial recordings of calls to claim that consumers had agreed to buy the listings. Those who refused to pay allegedly received collection notices, added charges, and threats of collection referrals, credit damage, or legal action. The 2013 release said the operation had generated more than 13,000 complaints and bilked more than $14 million.

In May 2014, the U.S. District Court for the Northern District of Illinois entered a default judgment of more than $15.6 million, which the FTC said was based on consumers’ losses. The permanent injunction banned the defendants from the directory business and restricted misrepresentations, collection, and use of customer information.

In December 2015, the FTC reported mailing 774 checks totaling more than $444,000. The checks represented the full amounts paid by affected consumers, with an average payment of $574.66.

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