September 15, 2016

The FTC alleged that business directory companies Construct Data Publishers a.s., also doing business as Fair Guide, tricked retailers, home-based businesses, local associations and others into thinking they had a preexisting business relationship with them. The defendants falsely suggested that consumers had to return a form confirming or updating their contact information for a trade show they had attended or planned to attend. Many recipients did not notice a statement, buried in fine print at the bottom of the form, that by signing and returning it they were agreeing to pay $1,717 annually to the company for a listing on its website. A court entered an order against Construct Data Publishers imposing a $7 million default judgment and banning them from the business directory business. FTC