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Old 02-16-2008, 04:04 PM  
will76
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Join Date: May 2003
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Maximum Cash sued by FTC over billing
Suit could spell the end of telephone billing by web sites
In what may be a major blow to telephone billing by internet companies,
RJB Telcom Inc., also known as Maximum Cash, is currently facing
a federal lawsuit regarding billing practices of it's adult web sites, which
include such popular sites as Kara's Adult Playground and Teen Steam.
Because of the lawsuit, the company's assets have been frozen and thousands of webmasters
who participate in RJB banner programs may not be paid. The US Distict Court in Arizona
is scheduled to rule November 21st on whether RJB assets will be freed up to pay webmasters.

The FTC makes a couple allegations, the most worrisome of which is regarding
telephone billing by RJB. RJB used a dialer program that allowed consumers to
pay for access to the web site by means of calling a special phone number,
similar to the methods many sites use with 976 numbers and 900 numbers. RJB used
an international number like the 011 numbers that many audiotext (phone sex) services use.
The FTC alleges that in some instances, the owner of the phone line was not the
person who accessed the site, but that it may have been a child or house guest,
so it is illegal for RJB to bill consumers in this way. Should the court agree with
the FTC on this point, it could mean big trouble for other web site operators and
other companies using telephone billing. WebmastersGuide.com predicts that the
FTC will not prevail on this point and telephone billing will be continue to be
a legal billing method. However, it is entirely possible that the FTC could win
this point and telephone billing would essentially be illegal from that point on.

The FTC also alleges that RJB regaularly billed credit cards of consumers who
had not accessed RJB sites, nor ordered any goods or services from RJB.
RJB has not yet responded to our request for comment. We will update this page
when and if we recieve comment from RJB, which we expect to be within 48 hours. A copy of the FTC complaint can be found on FTC.gov.
We also have copies of posts by RJB on their message board.
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