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Mail Firm Enjoined, Penalized : Judgment: Direct American Marketers Inc. of Irvine agreed to pay $555,000 and to send no deceptive mailers.

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TIMES STAFF WRITER

A direct-marketing company has agreed to an injunction that prevents it from sending deceptive mailers and to pay $555,000 in penalties, attorney fees and court costs, the state attorney general’s office said Friday.

Direct American Marketers Inc. in Irvine and its president, Anthony C. Brown, were accused of mailing 150 million postcards a year to consumers that falsely implied that they may have already won a $3,500 to $7,500 cash prize and giving them a 900 telephone number that they could call to inquire, Atty. Gen. Dan Lungren’s office said.

When consumers call, they are usually told they have won either $50 worth of grocery-store “cents off” coupons or other kinds of discount coupons, and are charged $6 to $12 for making the telephone call.

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An alternative, free method to learn by mail whether the consumer had won the prize was allegedly hard to use, the attorney general’s office said.

In agreeing to the judgment stemming from a lawsuit in San Diego County Superior Court, Direct American denied all of the allegations and admitted no wrongdoing.

The company agreed not to represent that a consumer has been picked to win the most expensive prize or award; not to solicit calls on its 900 number without clearly disclosing an alternative, free method; and other prohibitions.

Brown said Friday that the state’s investigation centered on promotions conducted a year ago. He said the company, founded in 1986 and now employing about 125, has since changed its practices.

Direct American also has operated under names that include Search Center, Audit Control Bureau, Confidential Consumer Secrets, Direct Consumer Exchange, Wishline, Award Claim Center and Home Employment Center.

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