Online directory settles scamming allegations

Attorney General Martha Coakley has reached a $16,000 settlement with Florida-based Directory Billings LLC to resolve allegations it scammed customers.

According to the allegations, Direct Billing, which does business as USDirectory.com, mailed businesses so-called live activation checks; these checks were for small amounts, usually $3.50, and on the back of the checks in fine print, was language stating that by depositing the check, the recipient agreed to purchase advertising in Directory Billing's online yellow pages directory, Coakley's office said.

The allegations stem from an investigation by Massachusetts and 25 other states, and Directory Billing agreed to pay a total of $400,000 to resolve allegations that it engaged in deceptive business practices. The Massachusetts share of the settlement is $16,000.

Part of the $400,000 will be used for restitution to former Directory Billing customers that did not understand the consequences of depositing the activation checks.
(By Chris Reidy, Globe staff)