At a minimum, the Commission should narrow the proposed Internet and Web services 

exception to exclude from regulation those activities for which the Commission lacks evidence 

of any fraudulent telemarketing.  All of the cases cited by the NPRM in support of a proposed 

business to business exception for Web and Internet services telemarketing involved the 

fraudulent sale of Web site hosting and design services and, more specifically, the  cramming  

of charges for those services on businesses' telephone bills.

92

  According to the FTC, those cases 

involved calls to businesses offering Web site design and hosting services for  

a `free' 30 day trial period . . .  Some small businesses were told 

they were under `no obligation' after the trial period; but that 

they'd be billed at the end of trial period unless they cancelled . . .  

Others were told that no charges would be incurred unless the 

business ordered the web site on a permanent basis and approved 

future charges . . .  Other businesses refused to accept the free 

offer, but agreed to receive an information package . . .  But small 

businesses were still charged for the `free' trial . . .  Many were 

billed repeatedly, month after month, even those who had not 

agreed to accept the trial offer and those who had canceled.

93

Nothing in this record suggests a pattern of fraudulent telemarketing for offers to supply Internet 

access service, or any other services relating to the World Wide Web other than Web site design 

and development, hosting and maintenance.  Accordingly, any extension of the Rule should be 

limited, at most, to these latter Web site development, hosting and maintenance services, as 

opposed to Internet access services, advertising services and the hundreds of other services 

92

See

FTC v. Shared Network Svcs, LLC

, Case No. S 99 1087 WBS JFM (E.D. Cal. filed June 12, 2000); 

FTC v. 

U.S. Republic Communications, Inc.

, Case No. H 99 3657 (S.D. Tex. Oct. 21, 1999); 

FTC v. WebViper LLC d/b/a

Yellow Web Services

, Case No. 99 T 589 N (M.D. Ala. June 9, 1999); 

FTC v. Wazzu Corp.

, Case No. SA CV 99 

762 AHS (ANx) (C.D. Cal. filed June 7, 1999). 

93

See

FTC Cracks Down on Small Business Scams: Internet Cramming is Costing Companies Millions

, FTC news 

release, June 17, 1999, 

at

 http://www.ftc.gov/opa/1999/9906/small9.htm; 

see also

Small Business Owners Who Got 

 Crammed  to Get Refunds

, FTC news release, Oct. 25, 1999, 

at

 http://www.ftc.gov/opa/1999/9910/republic2.htm. 

In the current NPRM, the FTC also cites to the comments of the National Association of Attorneys General 

( NAAG ) and comments made by participants at the July TSR forum, where the same  cramming  schemes are 

mentioned.  

NPRM

 at 4531; NAAG at 16 17. 

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