USA Herald

Telestar Consulting, Inc., Pays $7 Million for Duping Small Businesses and Non-profits

Telestar Consulting, Inc., is one of several companies that will pay $7 million to settle FTC charges filed against them in federal court. It was alleged that Telestar Consulting, Inc., tricked small businesses and non-profits into paying for overpriced merchandise after initially offering a first shipment of free or reduced cost products. The FTC stated that Telestar Consulting did not explain to the small businesses and non-profits the total cost, terms of the sale, or how many products they were getting. They also continued to send shipments (and charged for them) without consent.

When Challenged, Telestar Threatened to Send the ‘Client’ to Collections

The FTC also revealed that when small businesses and non-profits would challenge or question Telestar on their invoices, the company would threaten to send them to collections. Some simply paid the invoices because they believed they had no choice. Payment generally resulted in yet another shipment of unneeded (and over-priced) merchandise.

FTC Bans Telestar Consulting, Inc., from Certain Business Practices

In addition to the $7 million that Telestar will pay, the FTC banned them from being involved in certain business practices, including:

FTC Will Distribute Refunds in the Future

Small businesses and non-profits who were victimized by Telestar Consulting, Inc., may receive a refund from the FTC in the future.