Trading fortunes told for a fortune lost, the companies behind “Miss Cleo’s” psychic hot line agreed Thursday to forgive $500 million in customer bills to settle a federal lawsuit alleging they fleeced callers hoping to glimpse the future.
Ft. Lauderdale, Fla.-based Access Resource Services Inc. and Psychic Readers Network Inc. also agreed to stop selling their alleged soothsaying services over the phone and pay the government a $5 million fine, the Federal Trade Commission said.
Howard Beales, director of the FTC’s consumer protection bureau, said there was no truth in Miss Cleo’s prognostications.
“I’m no psychic but I can foresee this: If you make deceptive claims, there is an FTC action in your future,” he said in announcing the settlement.
The FTC lawsuit, prompted by more than 2,000 consumer complaints, said the psychic service promised a free reading, but consumers calling a toll-free number were directed to a 900 number charging $4.99 per minute.
