Print Version

TALLAHASSEE, FL – Attorney General Bill McCollum today announced that his Economic Crimes Division has reached a settlement with a Palm Beach County business over allegations the company marketed a “free” 30-day trial for its long distance phone equipment, but actually charged and debited consumers during the trial. MagicJack, LP markets MagicJack a phone service product which connects a household phone to a computer, allowing consumers to make unlimited long distance calls over the internet.

The investigation into the company’s practices began in July 2008 after the Attorney General’s Office received numerous complaints about the supposed “free” trial. Consumers reported that although the company advertised the 30-day free trial offer, customers were allegedly still being billed during the trial period. The investigation further determined that the product had limitations which were not properly disclosed and that the company had a lack of sufficient customer service to address consumer complaints.

As part of the settlement, the company has agreed to implement various new practices to assist its customers, including a guarantee that all inquires will be responded to within 24 business hours and a disclaimer on the first page of its website clarifying the eligibility requirements to participate in a free trial offer. The company will also reimburse the state for the costs associated with the investigation and has fully resolved over 500 customer complaints. MagicJack, LP cooperated fully with the Attorney General’s investigation and has resolved over 500 consumer complaints since the investigation began.