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Infomercial Company Settles Charges: National Media Corp.,...

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Infomercial Company Settles Charges: National Media Corp., the world’s largest infomercial company, will pay $175,000 to settle Federal Trade Commission charges involving a scheme to charge consumer credit cards for services and products that were marketed on a free trial basis. Philadelphia-based National Media is among 14 firms and individuals who agreed to pay a total of $292,000 in a settlement agreement with FTC. The companies, all based in Pennsylvania and New Jersey, were charged in an FTC complaint with providing consumer credit card information to outside telemarketing firms, which used the lists to sell various products, including discount shopping and travel clubs. Although consumers contacted by the telemarketers were offered a free trial membership, the sales companies often proceeded without warning or authorization to charge the full price on consumer credit card numbers provided by National Media and affiliated firms, according to the FTC charges. The settlement is the latest in a series of legal problems to confront troubled National Media.

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