Attorney General Lockyer Shuts down Bogus "Do Not Call" Operation
Says "Do Not Call" System Will be Operational By Early Next Year

November 27, 2002
02-132
FOR IMMEDIATE RELEASE
(916) 324-5500

(SACRAMENTO) – Attorney General Bill Lockyer today announced he has won a court order to shut down a fraudulent enterprise that falsely told consumers it was working with the Attorney General's Office to provide protection from unwanted telemarketing calls.

"This court order will stop these con artists from stealing people's money by stealing the government's identity," said Lockyer. "They were trying to get rich by exploiting the legitimate desire of seniors and other consumers to make their homes telemarketing-free zones."

Under a state law sponsored by Lockyer and authored by state Senator Liz Figueroa (D-Fremont), Californians who want to avoid telemarketing calls will be able to place their home and cellular phone numbers on a "Do Not Call" list established and maintained by the Attorney General in early 2003.

"This state will have a ‘Do Not Call' program up and running early next year," said Lockyer. "The public clearly wants telemarketing harassment to end and we will aggressively implement their wish."

"I'm gratified the Attorney General has taken a strong stance and told consumers he will get the ‘Do Not Call' program operational next year," said Figueroa. "In the meantime, Californians need to be watchful of holiday scam artists who try and exploit consumers' disgust with telemarketing."

The temporary restraining order (TRO) announced today came in a lawsuit filed by the Attorney General's Office against a Riverside County-based business known as the California Consumer Center (CCC). The complaint seeks to permanently ban CCC from engaging in unlawful business practices, unfair competition and false advertising. The suit also asks the court to order restitution for victims and impose civil penalties of at least $1.5 million. The TRO essentially halts CCC's operations pending the court's ruling on the permanent injunction, restitution and penalties. The operators of CCC, Renee Launer and Allen Mayea, did not contest the TRO.

The Attorney General's complaint alleges the defendants have attempted to unlawfully profit from the "Do Not Call" law. The statute allows California consumers to place their home and cellular phone numbers on a list to be established and maintained by the Attorney General's Office. The list will be provided to phone solicitors, who then are prohibited from calling those numbers. The Attorney General's Office is authorized to charge consumers up to $5 every three years to place and maintain their numbers on the list, and can contract with a private vendor to establish and operate the list. Private vendors will competitively bid for the contract to maintain the list next month.

The Attorney General's lawsuit alleges that in phone solicitations and Internet advertising, the defendants have falsely claimed to consumers in Los Angeles, Riverside and Orange counties, and possibly other communities that: they are working to create and maintain the "Do Not Call" list in affiliation with the Attorney General's Office or other governmental agencies; the CCC is itself a governmental entity; the CCC can place consumers on the "Do Not Call" list for three years; and the fee is $12, as opposed to the $5 the Attorney General's Office is allowed to charge under the law. Consumers are told they can pay the $12 by providing their credit card information or sending a personal check.

The TRO prohibits CCC from engaging in all those activities, and requires CCC to shut down its Website and toll free phone number. Additionally, CCC is barred from spending or encumbering any money paid by consumers without prior notice to the Attorney General's Office and approval from the court.

Lockyer earlier this year warned Californians to beware of identity thieves who run scams involving the "Do Not Call" list and other programs by claiming to be employees of the Attorney General's Office or other governmental agencies. These con artists seek to steal credit card numbers, social security numbers and other personal financial information.

Consumers who believe they have been victimized by a "Do Not Call" scam can register a complaint by contacting the Public Inquiry Unit of the Attorney General's Office at www.ag.ca.gov/consumers, or by calling (800) 952-5225. For more information about the "Do Not Call" program go to www.ag.ca.gov/donotcall.