FTC charges Canadian firm with fraud

WASHINGTON, Nov. 16 (UPI) -- The U.S. Federal Trade Commission Tuesday said a joint effort with Canadian agencies has resulted in enforcement action against a Canadian-based company.

The FTC charged that the company, Prime One Benefits of Toronto, Canada, "falsely claimed that consumers who paid a fee ranging from $159 to $236 would be guaranteed a low-interest rate, high-credit limit, and no-annual-fee MasterCard or Visa credit card."

Since 1999, the company "has operated boiler rooms in Toronto, targeting U.S. consumers, often the elderly or university students," the FTC said.

"After paying the fee, consumers did not receive credit cards. Instead, they received packages containing coupons and discounts for travel, recreation, auto, medical plans, satellite service and cellular telephones," the FTC said.

FTC Chairman Deborah Platt Majoras estimated that the scheme cost U.S. customers $10 million.

The joint U.S.-Canadian effort created in 2000, called the Toronto Strategic Partnership, has resulted in 16 FTC cases and more than 380 Canadian criminal charges, according to Majoras.