McCollum investigation gaining steam

John O'Brien Feb. 20, 2009, 3:17pm


TALLAHASSE, Fla. (Legal Newsline) - Florida Attorney General has received another $1 million to fund his investigation into the mobile phone content marketing industry via a settlement with a pair of California companies.

New Motion, Inc., and Traffix, Inc., jointly do business as Atrinstic and have agreed to pay the $1 million, McCollum announced Friday. In January, McCollum reached a similar settlement with Mobile Messengers and promised to use the funds to further probe the industry.

"Today's settlement will benefit cell phone users nationwide," McCollum said. "Florida is leading the nation in holding the industry accountable to a high standard of online disclosure and I appreciate Atrinsic's participation in this effort."

Atrinsic must also abide by McCollum's guidelines on specific disclosure of pricing and subscription terms in the online marketing of mobile content.

The prices of all cell phone content or services must be disclosed on all online transactions screens.

Complaints from consumers who claimed marketers were failing to clearly describe the price and terms of purchasing mobile content, McCollum said.

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