For the week of Sept 25 - Oct 1, 2002

AG warns of possible CD-ROM directory scam

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By GREG MOORE
Express Staff Writer

At least two Ketchum businesses have been hit by an apparent scam carried out by a Canadian company trying to collect money for unsolicited merchandise.

Idaho Attorney General Al Lance issued a warning Sept. 18 stating that a company called National Info-Tech Center has sent billing invoices of $200 to $500 to at least 40 Idaho businesses after shipping them unsolicited CD-ROM directories.

Two of the complaints were from Ketchum businesses, Formula Sports and Sun Valley Cleaners.

Formula Sports was sent a CD-ROM on June 12 titled "US Telecommunications Directory" from National Info-Tech Center in Montreal. The store’s controller, Jennifer Nelson, said in an interview that the store has since received at least 30 faxes from a Leesburg, Va., address demanding payment of $503.99.

"They have been calling and harassing us and telling us that one of our employees had ordered a CD that we didn’t order," Nelson said. "We keep telling them that we did not order the merchandise and they keep harassing us."

Ty Nguyen, National Info-Tech Center’s president and CEO, said in an interview Monday that all shipments of the CD to Idaho businesses have been made in response to valid orders, and that his company’s investigation of the complaints has shown that in most cases, the orders were placed by unauthorized employees.

Nguyen said the CD directory, of which 25,000 are sold per year, provides names and contact information for "market targeting." He said the $503 fee includes $204 for purchase of the CD directory and $299 to be included in it for two years.

The CD sent to Formula Sports contains a nationwide list of businesses of every description, government agencies and non-profit organizations, including thousands in Idaho. It contains 415 in Ketchum, 194 in Hailey and 33 in Bellevue. The entities listed are as diverse as Ernest Hemingway Elementary School, Cathedral Pines summer camp, and plumbing and welding services. Of four of the listed businesses contacted by the Mountain Express, all said they had never paid for the service and had never heard of National Info-Tech Center.

In August, Lance ordered National Info-Tech Center to supply documents related to its business practices in Idaho. When the company did not comply, the Attorney General’s office filed an application in 4^th District Court in Boise requesting an order that it cease its business activities in Idaho. A hearing date on the application has not yet been set.

Nguyen said National Info-Tech Center has not received the attorney general’s letter of demand. However, Bob Cooper, the attorney general’s public information officer, said his office has a certified mail receipt dated August 26 from a National Info-Tech Center office in Phoenix. He said the invoices sent to some Idaho companies had come from that address.

Idaho’s Consumer Protection Act forbids businesses to engage in any deceptive practice, and a civil penalty of up to $10,000 can be assessed for each violation. Brett DeLange, deputy attorney general in the Consumer Protection Division, said the office will decide whether to seek such penalties at the conclusion of its investigation of National Info-Tech Center’s activities.

The Consumer Protection Unit is requesting that any business receiving billing invoices from National Info-Tech Center contact it at (800) 432-3545.

Lance stated that any business that has received unsolicited merchandise is not obligated to pay for it.

 

The Idaho Mountain Express is distributed free to residents and guests throughout the Sun Valley, Idaho resort area community. Subscribers to the Idaho Mountain Express will read these stories and others in this week's issue.