Hearing Aid Dealers Will Change Ads : Settlement: The FTC had accused them of misleading customers into believing Medicare would pay for the devices.

Seven hearing aid dealers, including four in Los Angeles, have agreed to correct advertising that the federal government said misled elderly customers about Medicare reimbursement.

The Federal Trade Commission said Wednesday that the dealers, with more than 30 offices in California, New York and Massachusetts, will fix misleading advertising in phone books and will give customers accurate information.

Two Southern California hearing aid dealers said they have already corrected their ads to delete references to Medicare.

The FTC said Medicare, the government health insurance program for people over 65, does not cover the cost of hearing aids and does not reimburse patients for hearing tests conducted for the purpose of prescribing or fitting hearing aids. Medicare will cover hearing tests performed to diagnose medical problems, it said.

The FTC said the advertisements contained such phrases as “sales and service . . . all major brands . . . Medicare welcome.”

“It is reasonable to say consumers were steered toward the dealer that said Medicare will pay,” said Eileen Harrington, associate director for marketing practices at the FTC.

Harrington said the case was intended to put other hearing aid dealers on notice about deceptive marketing practices. She declined to say whether the 2-year-old investigation is continuing.

Two hearing aid dealers reached Wednesday, Audio Logics and Brown-Potter Hearing Aid Center, both of Long Beach, maintained that their ads were not deceptive because their companies do accept Medicare for some services, although not for hearing aids.

Sherwin Basil, owner of Audio Logics, said he agreed to change his ads to avoid a costly fight with the government.

“I think they are kind of screwy in the head,” said Salley B. Carpentier, owner of Brown-Potter Hearing Aid Center.

The two other area companies named by the FTC are Audio Rx Hearing Aids, with offices in Los Angeles and Lawndale, and Hearing Care Associates, with 20 offices throughout the area.

Susan Frugone, an owner of Audio Rx, said she was unaware the case had been settled and had no comment.

Gregory Frazer, named by the FTC as a principal in Hearing Care Associates, was not available for comment.

Also named by the FTC were two hearing aid dealers in Brooklyn, N.Y., and one in South Weymouth, Mass.

The FTC said that if the dealers violate the terms of the settlement, they will be subject to a $10,000 fine for each infraction.