Dialing for Dollar$
A Report on How the Psychic Industry Misleads Callers, its Stay-at-Home “Psychics” and the General Public
New York State Consumer Protection Board October, 2001
C. Adrienne Rhodes, Chairman & Executive Director
STATE OF NEW YORK EXECUTIVE DEPARTMENT STATE CONSUMER PROTECTION BOARD
George E. Pataki C. Adrienne Rhodes Governor Chairman & Executive Director
October 31, 2001
Dear New Yorker:
The following report details activities of the Psychic Readers Network and other companies that are part of the multi-million-dollar “psychic” phone industry.
Many people want to believe that there exists some mystical power that can read their minds and predict the future. It can be a harmless amusement in the way that an Ouija Board entertains children.
However, this industry causes the state concerns when its business practices mislead consumers.
The Psychic Readers Network is the largest single psychic service in the world and, not surprisingly, it is also the cause of most of the complaints filed with the Consumer Protection Board regarding “psychic services.” It is also the single greatest source of complaints from consumers registered for protection under New York’s State’s new “Do Not Call” Telemarketing Law administered by the CPB.
Based in Fort Lauderdale, Florida, the Psychic Readers Network has produced a business that generates more than $300 million a year. It has also produced a worldwide celebrity: “Miss Cleo.”
The questionable tactics used to generate phone calls to one of dozens of toll-free phone lines is just one piece of an overall pattern of business practices that may mislead consumers. The New York State Consumer Protection Board has also found more than 100 apparent violations of the State’s “Do Not Call” Telemarketing Law.
Behind the scenes there is another consumer story: the pitfalls faced by the people who work out of their homes, answering calls to these psychic phone lines. In many cases, these “stay-at-home psychic readers” are unprepared for the intricacies of the billing and other procedural demands made by “psychic” networks. This is in addition to the dubious practice involved in allowing anyone to call themselves a “psychic.” In many cases, consumers with very real problems are spending hundreds of dollars in phone charges to get their problems heard by these so- called “psychic readers.” Their main job is to keep callers on the phone for as long as possible.
Finally, PRN has apparently violated New York’s “Do Not Call” law in an attempt to garner more business. We are issuing a Notice of Apparent Liability (NOAL) for a penalty of up to $224,000 for 112 apparent violations of the “Do Not Call” law. Although enforcement of the law for violations began on May 2, 2001, PRN did not even bother to purchase the “Do Not Call” Registry until August 6, 2001, according to our records. PRN will have 30 days to respond to the NOAL for these apparent violations.
We expect this report, as well as the CPB’s enforcement of New York State’s “Do Not Call” Telemarketing Law, will have an appreciable impact on the business practices of PRN and other “psychic” services.
C. Adrienne Rhodes Chairman and Executive Director New York State Consumer Protection Board “DIALING FOR DOLLARS”-- HIGHLIGHTS
1. “CALL ME NOW for your free reading!” … How callers seeking a “free reading” from Miss Cleo are directed to a 900 phone number -- and potentially hundreds of dollars in phone bills. Page 6
2. Deceptive Practices … Television commercials, e-mails and other marketing by “Miss Cleo” may mislead the public into calling toll-free numbers to learn “urgent” information. When they finally get to a so-called “psychic,” the experience may not be as dramatic as the “readings” demonstrated by “Miss Cleo” in her television ads. Pages 7 and 8
3. “Stay-at-home Psychics” … It’s not “Miss Cleo” answering all those phone calls. It’s hundreds of people working out of their homes, acting as “psychic readers.” These “stay-at-home psychics” must keep callers on the phone well past their “free minutes” or risk being fired. Pages 9 and 10
4. After Midnight … Late-night television is when “Miss Cleo” commercials flood the airwaves. Page 11
5. Reading from Scripts … Stay-at-home “psychics” may read from scripts to help them perform. The goal is to keep the caller on the line for as long as possible. Page 12
6. Promises, Promises … Callers are lured to psychic lines by promises of lottery and sweepstakes winnings. Page 13
7. Reading the Future (By the Book) … People receive “urgent messages,” some referring to life-threatening health concerns. They all urge an immediate call to “Miss Cleo” to learn more about their future. Page 14
Page 4 “DIALING FOR DOLLARS” -- HIGHLIGHTS
8. “Breaking the Three-Minute Barrier” … Advice from a “bookstore” manager to her psychic “reader” on how to stretch calls beyond the “free minutes” promised in “Miss Cleo” advertisements. Page 15 and 16
9. Billing Complaints … Consumers complain about hundreds of dollars in phone bills, sometimes because minor children called and stayed on a psychic line for 15 to 30 minutes or more. Page 17
10. Telemarketing complaints … Details of the CPB’s Notice of Apparent Liability (NOAL) against PRN for at least 112 apparent violations of the State’s “Do Not Call” Telemarketing Law. Page 18
11. Direct Marketing Machine … How callers to psychic lines -- and people who have never called -- are placed on marketing sales lists. These lists generate e-mails, telemarketing calls and other advertisements that may invade people’s privacy. Page 19, 20 and 21
12. So Who Really is “Miss Cleo” … The “world-renown master psychic” speaks to the Consumer Protection Board. Page 22
Page 5 CALL ME NOW for your free reading!” “Miss Cleo” urges viewers of her ubiquitous television ads. The chance Route to Your Free Psychic Reading to get a free "psychic reading" is a great enticement that has resulted in thousands of people calling this “world- renowned, master psychic” on a series of toll-free, Caller dials one of several 800 numbers. 800 numbers, looking for a “free reading from Miss People call these 800 numbers at all hours of the Cleo” day and night. But it doesn't matter when you call, because the result is always the same: there is no psychic or psychic reading at the other end.
Instead, callers are connected to a bank of telephone operators at companies such as Real Communication Services in Fort Lauderdale Fla. 800 call is answered by an These operators ask for the caller's name and e-mail operator, not a “psychic” address. (This information will eventually be sold and not “Miss Cleo.” to other companies for their own marketing Operator tells callers to campaigns. It is also used by the Psychic Readers dial a 900 number for their Network to send letters, e-mails and telemarketing “free psychic reading” calls from PRN and "Cleo”.)
To get their psychic reading, callers must hang up and dial a 900 number. Only then are callers connected to a so-called “psychic.” A spokesman After dialing 900 number, the call is routed for PRN said calls are directed to an 800 number, through a nationwide computer and instead of directly to a 900 number, in order for telephone network and sent to the home callers to have three opportunities to understand telephone of a “psychic.” The network the company’s pricing and other policies. The goal, usually selects a “psychic” based on how according to the PRN spokesman, is not to mislead much money that “psychic” has made for callers into thinking they will receive anything the company in previous 900 calls. other than what the company offers.
These “psychics” at the other end of the line, generally work out of their homes. Their primary job is to keep callers on the 900 line for as long as possible. Subcontractors in this network may provide scripts and other suggestions to help One of hundreds -- if not “psychics” keep the calls going for an average of thousands -- of so-called 15 to 20 minutes -- sometimes even longer. The “psychics” wait by the phone longer the call, the more money pocketed by the to answer a 900 call. They are reader, their employer and ultimately the Psychic paid only if they keep the Reader Network (PRN). caller on the line beyond their “free minutes.”
Page 6 DECEPTIVE PRACTICES “This Company had great success with (“Miss Cleo”) ads. People were The “Miss Cleo” ads usually do not mention that drawn to her personality and called in you must dial a 900 number in order to get your "free psychic reading." Only a toll-free 800 number is droves. So of course, (PRN owner) advertised. Focusing solely on this toll-free number, Steve (Feder) had her do more ads. encourages callers to think they will be getting something for free. “Now this Company will take things right to the edge, which I do not like. Although PRN makes some effort to block calls They put on the TV screen what is from minors, “Miss Cleo's” ads are placed on cable supposed to be her extension. Well, television shows frequently watched by minors who often do not understand the difference between an 800 I'll eat all the decks of my tarot cards, and a 900 call. one by one, if anyone ever answers that extension. That may have been That difference is made even more confusing by the her extension two years ago, but she operators who answer some of the 800 calls. During a call to 1-800-997-7748 on October 16, an operator hasn't logged on to take calls at 18 said a free reading was available but only if you dialed cents a minute in a very long time. a "pre-paid" 900 number. The operator could not offer a clear explanation of "pre-paid." "It's the free “However, these poor people are told minutes," she said finally. they can talk to Cleo. It disgusts me.” While this report does not address the authenticity of -- Chloe Quinn, a manager “psychic reading,” it is a fact that no “psychic” -- genuine or otherwise -- answers any of these 800 of “psychic readers” phone lines. Likewise, there is no “free reading” in these calls.
This is only one of several deceptive and/or misleading statements made during these ACTING RESUME commercials. Others include: Model - Actor - Stunt Person - Voice Over · "Real Callers" During many ads, it Location: Orlando, FL appears that Miss Cleo is giving a tarot card reading to a caller. But in at least COMMERCIALS: some cases, those "callers” are actors. International Ovaltine - Featured Su mo Youree Cleomili Harris, who portrays Fan - BBC Productions “Miss Cleo,” denies that actors are used in World Wrestling these commercials. Yet, a resume such Federation - Hostess - as one uncovered by the CPB (see box at WWF Productions Ms. Pak International - right) suggests otherwise. Principal* - Gorilla band Productions · "Call Me Now!" Only in a limited National number of advertisements -- most of those Walt Disney World - being e-mails -- does “Miss Cleo” concede Restaurant Dancer - WDW Productions that callers will be speaking to someone other than “Miss Cleo”. Psychic Readers
Callers are seemingly offered a chance to Network - Margie (Principal*) - Garrett/Rudner speak to “Miss Cleo” when advertisements Productions
offer her telephone extension (“16153”). *Dialogue spoken on camera But callers to a psychic line do not get a choice -- to speak to “Miss Cleo” or any (Taken from website resume) other “psychic.” (cont’d.)
Page 7 DECEPTIVE PRACTICES
“Call Me Now!” (cont’d.) “Sometimes they will say, but I was TOLD Miss Cleo had a message When “Miss Cleo’s” telephone extension is advertised on television, viewers may think they have a legitimate for me, or I was TOLD to call here opportunity to “Call Me Now!” But calls are actually routed so I could speak to Miss Cleo. through a vast, nationwide network, connecting calls to a “psychic reader” based on how much money that reader has “Those are the most disgusting made for the company in previous psychic calls. The calls of all, because these poor folks amount of money depends on the length of each call. have been defrauded in my opinion. And I tell them, ‘Well, dear, you Every “reader” is supposed to offer their telephone have received a piece of advertising. extensions to encourage people to call back on other 900 psychic lines. Return calls are tracked by PRN which this Company attracts callers in a rewards subcontractors and their “psychic readers” with variety of ways.’” more calls based on those return calls. “You can handle these calls as you see fit, but I cannot see lying to my callers about an advertising
• gimmick.” Life or Death. While “M iss Cleo” cheerily tells television audiences to “Call Now,” her tone and -- Advice from “psychic message become much darker in e-mail manager” Chloe Quinn messages and in tape-recorded telemarketing calls. In some cases, consumers are confronted with the idea that they may encounter a matter of “life or death.” The messages say that a call to “M iss Cleo” will answer their questions but they must call immediately!
“I know the bad business of placing • “Beep tone” Consumers are often told to listen them on hold for a long time was for a beep tone to signal the end of their free tricking the people (and) was wrong minutes. Some callers complain that no beep but to an extent (the network) told us warning was given. In other cases, callers are to do it (to wait for Cleo). told that the beep designates them “a special caller.” They are told to wait on the line because “I also know that some people were “M iss Cleo” will soon be speaking to them. doing the hold thing to raise their Waiting on hold, like the rest of the call, usually average, but geeze louise that’s not costs $4.95 a minute. Many current and former nice. Those ‘psychics’ should have psychics decry the practice of placing people on thought about the callers and put hold. Some give PRN owner Steve Feder credit themselves in the callers shoes.” for firing readers who have been found to excessively place callers on hold. -- Chat room message posted by a stay-at- home psychic
Page 8 STAY-AT-HOME PSYCHICS
While you can find Miss Cleo almost everywhere on “All you need is a phone and the desire to television, you probably won't find her on the learn and assist individuals." telephone, answering calls from the people looking for -- Job posting on jobtrove.com a psychic reading. (In an interview with the CPB, Ms. Harris insists she still takes phone calls but the time needed to reach her is “unforgivably long.”)
Most callers are connected to one of hundreds of people scattered across the country who answer these calls from their homes. “VERIFICATION OF EXPERIENCE -- Please note that tarot, astrology and basic These “stay-at-home psychics” are independent numerology training is filled in for you.” contractors, working on the lowest rung of this vast "psychic network." They are housewives, retirees and -- Contract application from Blue Lotus others looking for a way to make money working out of Counseling, a PRN subcontractor. their homes.
But as “psychic readers,” they can find themselves working long hours for little pay. In some cases, these so-called "readers" are not paid at all or are cut off from the network if they do not follow the elaborate “(I) was shorted working for contractual rules laid down by PRN and its Buckwood Communcations/Waid Ent...It subcontractors. seems I was never informed...of the 15-
There also appears to be little screening of applicants min. rule which is you take more than 9 from the standpoint of protecting callers and their calls a day and your average is below 15 personal information. In some instances, ex-convicts minutes (per call) you won’t get paid for have been hired to take names, addresses and phone that day. numbers from people calling these psychic lines, according to a report by WPLG in Orland, Fla. “I’m sorry but this is nothing more than a rip-off.” RULE NUMBER ONE -- Message posted in chat room for “stay-at-home” psychics The most important job of a “stay-at-home psychic” is to keep the caller on the line for as long as possible. These are the instructions are generally given out by PRN subcontractors (known as “bookstores”) who recruit and hire “readers” for the network. If a “stay-at- home psychic” cannot maintain a 15 to 20-minute “You want to aim for a 25 minute or average for calls, their pay can be cut and they can be higher average so (more) calls will come fired. in just as soon as you hang up. To do this, you must think in terms of 45-minute calls Requiring calls to last an average of 15 to 20 every time you pick up the phone. minutes has little to do with answering a caller's “psychic” questions. According to current readers and “If you think 25 minutes, that's all former readers, it has everything to do with making you will get, but when they are averaged money. in with hang-ups and short calls, your
(cont’d.) average will drop dangerously low. So think 45 minutes.” -- instructions for “psychic readers”
Page 9 RULE NUMBER ONE (cont’d.)
“Readers” for some “bookstores” can be fired -- and their pay withheld-- if they don’t work a minimum of “You wanna keep ‘em on the phone, 60 hours a week and maintain an average call length of that’s the idea. The average call length is at least 10 minutes. How often a “reader” is “logged what counts,” said a recruiter for on” -- available to take calls -- is another factor used by Buckwood Communications. the network in deciding which “psychics” get calls. (Recorded by undercover camera for It may appear that a “reader” can make $11 to $15 KVBC-TV during a “psychic” recruitment an hour -- or up to $600 a week-- if they work five, seminar in Las Vegas, Nevada) eight-hour days. But filling that time can be difficult, if not impossible, according to “readers” and former “readers”. The network demands 600 minutes per week. But to get enough calls, readers must keep people on the line long enough to meet the 15 to 20- “Your services as an independent contractor minute call average necessary to get more calls. Falling are only being purchased for a maximum of short can mean firing or no pay for the hours you 10 calls unless you can reach a call length of worked. higher than 10 minutes.”
Often calls are very short because callers hang up -- Recruitment website for when they are connected to a “psychic” other than Buckwood Communications, “Miss Cleo”. Others hang up after their free minutes. PRN’s largest subcontractor All of this reduces a “reader’s” average, thus limiting their ability to get more calls in the future.
“You can end up waiting by the phone for eight hours and get only three calls,” said Barbara Weil, a former PRN reader. "Why is a 20-minute average so Another adviser to “psychic readers”, Rea Pearson, difficult? Well for one thing imagine all warns that pay checks are delayed for several weeks -- of the callers all over the US and or may not come at all. “Some bookstores (PRN subcontractors) do not pay “readers” if they complete Canada who are calling for their less than 60 minutes in a week,” Pearson warns on her fascinating free reads...They will hang website. up after three minutes unless you are REALLY very engaging and talented PRN’s nationwide computer system also routes calls with this." to “readers” based on the amount of personal information collected by “readers” from callers. A -- Rea Pearson, Internet web advice “reader” can be let go without being paid for work for prospective psychic readers already completed if they fail to collect enough names, addresses and phone numbers from their callers.
Payments to “psychic readers” are not based on how they treat customers or perform as “readers.” The chief criteria is how long they keep the caller on the line. “Not only have they made hundreds of dollars off my time -- As one former “reader” put it, “Ninety-five percent of people who work on that “Miss Cleo” line don’t refusing to pay me the small amount have psychic power or counseling (experience). But they owe me -- but they’re flat out they know how to keep callers on the phone.” taking advantage and scamming (cont’d.) people.” -- former psychic reader “P. Brown”
Page 10 STAY-AT-HOME PSYCHICS (cont’d.)
AFTER MIDNIGHT CONVERSATION AROUND THE PSYCHIC WATER COOLER
To keep their call averages high enough -- and avoid cuts in pay or risk of being fired -- “stay-at-home (Messages posted on Internet chat room for psychics” are often forced to work after midnight. stay-at-home psychics) That’s when “Miss Cleo” television ads blanket the airwaves. These commercials and half-hour “Hey B: infomercials, cause a flood of phone calls to “Miss Overnight calls is where it’s at. I’ve heard of Cleo.” average readers getting calls wonderfully The long, late hours take a toll, former and current after midnight. When I worked the line I “readers” say. Turnover is high, which is why PRN could never stay too late and actually function subcontractors have dozens of recruiters and websites enough to give a good reading.” seeking new “psychic readers”. ------“There's always somebody to answer the phone,” said Barbara Weil, a former PRN reader who testified Reply #7 on employment conditions in litigation brought by the Florida Attorney General against PRN. “For every 10 “I figured as much. I have actually spent more (readers) they lose, there’s another 100 that apply.” time waiting on calls in the last week than ever before as I’ve had to log on when the Watching “Miss Cleo” on late-night television, people reach out for answers from a “psychic.” “Stay- little one was napping in the mid-afternoon. at-home psychics” can be confronted with calls from Those 3 min calls have killed me so while very desperate people. PRN subcontractors and their keeping my fingers crossed that I don’t get managers have a policy in which “psychics” must give totally get disconnected, I’m going to log on helpline numbers (for suicide threats and other late. emergencies) to callers. But in less-severe cases, the emotions of a caller are used to keep them on the phone “C, how did you keep your average from talking to these “stay-at-home psychics”. circling down a drain on regular basis if you didn’t log on late? Not being nosy(sp), just “LISTEN FOR EMOTIONS,” advises one psychic want to learn from a master.” recruiter on her website. “You can hear anger, depression, confusion, low self esteem, as well as self assurance.” The website does not discuss these emotional clues in terms of finding ways to help the caller. Instead, the recruiter demonstrates how these emotions can be manipulated into keeping a caller on the phone for as long as possible. “If a caller call (sic) and ask "do you see my Lover with another person?" if your “Many of the callers will have a low self esteem in answer is NO, You will get a short call, but their voice from the beginning of the conversation right if you said, Yes be sure that (there) will be up into the end of the conversation,” the recruiter a lot more questions. continues. “Low self esteem is a very big problem with some callers. Start by addressing that first. ‘Sally, “After that caller hang (sic) up, that is the something happened in your life that has been problem if that person believe (sic) the extremely hard to overcome? I can feel that you have a pseudo Psychic with the fake answer, you very low self esteem, what happened?” can destroy a person, family and more.”
-- Warning from a psychic reader
Page 11 “Answering A Question With a “READING” FROM SCRIPTS Question.”
In some cases, “stay-at-home psychics” may use “If you are asked a direct question think scripts to help them perform during “psychic readings”. about WHY they are asking the question… The goal is always to keep callers on the line for as long the number one reason for a woman or man as possible, making the customers think they are to (leave) their spouse is for another person. witnessing psychic clairvoyance. I might say something like, "My feeling is Although PRN denies that they provide scripts to there might be a third party somewhere in their employees, in one script, available from recruiters this relationship, is there a third party? I got for Buckwood Communications in Las Vegas, Nevada, my second yes. readers are shown how “Answering a Question With a Question” can make a reader appear “psychic.” The “Now I take the ultimate guess: goal, it states, is to “get a conversation going.” This conversation, however, will cost you $4.95 a minute. “Is this third party another man? If I get
The scripts also reveal how the psychic industry a third yes than (sic) I'm gonna assume feeds off the loneliness and isolation experienced by the these two men have very different people who call for “psychic answers.” personalities. I'm also going to ask (the caller) to explain their differences. “Assume they have nobody to talk to. Why else are they calling us? LOL,” reads a script from Corris “As you might have noticed I still Counseling Enterprises, a recruiter of “psychic readers” haven't answered his question but he's in Florida. (“LOL” is Internet-speak for “Laugh Out Loud.”) This particular script takes more than 30 still talking to me. GET IT! I won't even minutes, according to Corris. attempt to answer that question until he's told me everything ...” “Some people just want someone to talk to. Let them talk, you could lose the call if you don’t,” -- Script suggestions instructs a recruitment website, “Psychic Intuition” (sic). for psychic readers
Scripts instruct “readers” to gather personal information that will be used to sell them more readings and other products in the future. After that “the next few minutes are crucial,” one script warns. “You must keep the caller’s attention.”
The reason is simple: if the caller is listening to the “psychic,” they may not realize that their free minutes are over and their so-called “psychic reading” has not yet begun. “Listening and questions is the most
In her television appearances, “Miss Cleo” appears to important part of working the Psychic have the clairvoyance to see intimate details about Line. You will find that many callers people’s lives. The implication is that she can see the actually listen to themselves speak. Let them future, as well as the present. But the scripts for “stay-at- do the talking sometimes they figure out home psychics” coach them to give “exciting” and their own problems… “theatrical” performances without promising or “seeing” anything insightful. Many scripts warn “readers” against “During the reading your main goal is making promises or any prediction of the future. to get a conversation going with each and Some scripts, however, suggest that “psychic every caller.” readers” should tell people to expect some unexpected -- Psychic reader instructions wealth, such as lottery winnings.
Page 12 PROMISES, PROMISES “Dear bob,
Scripts for “psychic readers” are filled with suggestions An unbelievable opportunity to cash in a on what “readers” can say to keep a caller on the line, bundle of MONEY could soon come your paying more money into the psychic network. A frequent way! Yes, after studying my cards, bob, we've theme is the promise of prizes, lottery winnings or other determined that this could be a fantastic time riches. One tarot script suggests the line, “You can to discover luck. definitely expect some money because so far all of your cards are money, money, money. Isn’t that great?” Is it an inheritance? Is it a gambling, lottery or betting win? Will you win the first Officially, PRN prohibits readers from “promising and/ prize of a competition? or insinuating a guarantee of lottery numbers or other such unethical practices.” However, e-mails and other bob, we need to know for sure so you don't marketing by PRN often suggest that lucky numbers for miss out on this incredible opportunity to lottery winnings and other riches can be obtained with just possibly become very, very rich! one phone call to “Miss Cleo”. A recent e-mail from “Miss Cleo” (see box at right) carried the title, “A Large I am offering you a FREE Tarot advice Amount of Money.” gift so we can discover what kind of treasure
“Don't miss what could be your once-in-a-lifetime you may soon receive! Call this toll-free chance to live without any financial worries!” implores number immediately for your FREE psychic “Miss Cleo.” With elliptical phrases such as “this is a advice: 1-800-258-8622. bob, it's urgent that fantastic time to discover luck,” the e-mail strongly you call and find out what money may implies, but never directly states, that a phone call to be coming your way! Don't miss what could “Miss Cleo” will produce a cash prize. It strongly suggests be your once-in-a-lifetime chance to live that a large amount of money is out there, but you can only find it by calling “Miss Cleo”. without any financial worries! Call now, 1-800-258-8622. These e-mail messages are delivered by a marketing business built around an on-line gambling theme, With love and hope,
GroupLotto.com. GroupLotto’s online lottery games -- Miss Cleo and the rest of its marketing efforts -- are reinforced by the strong links between lottery games and the messages in P.S. Please do not share this number with “Miss Cleo’s” e-mails. anyone! It's a reserved number that's meant for you, bob. Call Now! It's a FREE Call!”
“Call Now for Your Lucky Numbers” -- E-mail message from “Miss Cleo” is from the “Psychic Directory” page, part of Subject: A Large Amount of Money mindandspirit.com, one of many “Miss Cleo” Received Oct. 10, 2001 websites operated by the Psychic Readers Network.
CAN YOU FIND MONEY IN THE STARS? The number connects to a tape-recorded message Tap into the wealth and in which “Miss Cleo” urges the caller to dial a success waiting for you 900 number for a free, five-minute reading. In 1-800-997-7751 her taped message, Miss Cleo makes no mention Also of “lucky numbers.” from mindandspirit.com
Page 13 READING THE FUTURE -- BY THE BOOK “It might help if you have a deck (of tarot Many psychic “readers” claim to have a “gift,” a cards) in case anyone calls that actually natural intuition into seeing people’s problems. But even want (sic) a reading. But what we’re really these so-called genuine “psychics” say it is impossible looking for is someone to listen to the caller. to predict the future. They also say there are many We’re more in the line of counseling work. people working as “psychic readers” who ask more questions than give answers. People are just calling up looking for the right to talk about their issues.” Based on interviews with “readers” and the websites -- Psychic recruiter in Utah. used to recruit new “readers”, the psychic industry wants people who know when to talk and when to listen. They supply the “readers” with scripts and other advice on how to keep callers on the phone for as long as possible, as often as possible. “She sent me an e-mail that said, ‘Dear Officially, PRN advertises that the psychic lines are June, it’s important that you call me at the “for entertainment purposes only.” Yet on television -- number below no later than August 5th. It’s including a recent pay-per-view special -- “Miss Cleo” makes astounding predictions regarding friends, families a life or death situation. It was news only she could share with me. and lovers. These performances are far different than the experience suggested by psychic recruiters. “Funny, but I’m still here today.”
Even more drama is offered in e-mails and letters -- June Barthony, Depew, N.Y. mailed under “Miss Cleo’s” name. As previously mentioned, they often refer to “urgent” situations that compel “Miss Cleo” to call people and for them to contact her immediately.
Dear John, I must speak with you. john, the answers will be perfectly I sometimes have potent visions clear. This call is FREE! Call now of our clients and I believe your and begin to live truly free. There is situation was a part of this vision, a reason for everything, john. There is john. I can’t tell you much more. a reason for my vision, a reason for My psychic staff and I will speak contacting us, a reason for opening with you about it as soon as you this letter… We have met at the call. At this moment I’m issuing crossroads, you and I, and together you a FREE Tarot reading so that we’re going to journey to that together we can complete the mysterious place where all the puzzle that is your life! answers are!
It is crucial that you call Sincerely, immediately, however. Call 1- 800-267-6978 now! Miss Cleo P.S. Please do not E-mail from "Miss Cleo" share this number with anyone. It is a
Page 14 Breaking the three-minute barrier
Advice from a psychic manager to one of her “readers” on how to stretch a call to at least 15 minutes
From:
Hi Pennie:
Thanks for putting in a great effort last evening….
The reason I'm asking you to work during the evenings is that the evenings usually produce very long calls.
I also would like to see you work a solid 200-300 minutes minimum per evening. That will give you a nice, sturdy paycheck, and it will give you alot of calls during the long call periods so you can achieve and maintain your call length average.
Please do not log off with a call length average under 20 for that day. I would suggest you go back on the line today and try to pull that average WAY UP. If you end your day today with a 13 minute average, you are in the hole and it will affect the number of the calls you get in the future.
As to specific calls, let me give you a few pointers:
I answer the phone: Hello how are you today? And I say: 1) May I have your first name? 2) And the city and state you are calling from this evening? 3) And your date of birth. 4) Your zip code in (fill in the name of the state) for example, "your zip code in colorado" 5) And the spelling of your last name. 6) and, in .....(the name of the city)... your street address. 7) any email address for you on the internet? (if you follow that format, they will naturally, automatically give you their info without realizing it and you will have full name, address, city, state, zip and birth data without the caller realizing quite how much personal information they have revealed. if you say "what is your address"? most people won't give it, or will balk.)
once i've collected that info - and it takes less than a minute - i say: i'm going to ask you to do me a quick favor, if you would. (they always like doing favors so they say yes) I ask them to grab a paper and pencil, settle themselves into a quiet room BY THEMSELVES - no one around to disturb us - AND to TURN OFF THE TV/RADIO/Stereo. They usually have to shift around and get all this accomplished, but there's no reason why they should sit next to a blaring TV while you are trying to work and I refuse to talk to them until it's quiet. I even ask them to have some other adult in the home watch their screaming kids while they go into. That takes about 30 seconds to a minute for them to get situated.” (cont’d.)
Page 15 E-Mail from psychic manager to one of her readers (cont’d.) then I: 1) immediately give them our main number. I call it our MAIN number or PERMANENT number. I never call it the "callback" number because it would take an act of congress for anyone to ever call back and reach anyone in particular, so I never mislead callers by saying, here's my callback number. Instead, i say, here's our Permanent, Main number that is available to you 24 hours a day, 7 days a week, in case you need us.
Then, I give out my extension number and name: I say, my personal extension is: and my name is xxxxx and i spell it for them.
Then I say, it would be wonderful if we could reconnect in the future, and you can request me, but it is very difficult to reach me a second time, so let's make really good use of the time we have together today. In that manner, you have told the truth about this line. The owner would like you to say that these folks can call you back. They can't. It would be a minor miracle if they called you at the exact moment you were free. If they did, then YES their call would come to you. But that will happen maybe one or twice in 5 years, so I prefer not to mislead my callers.
Then I say to them: Our experience over the years of providing this great service to our calls Is that our callers are very bright and focused, and usually people call us when they have very specific topics on their mind to talk about.
Here the caller will often say yes, or grunt, or just launch right into what they want to talk about. I still want them to tell me their topics.
Notice that i say TOPICS - plural.
I ask them just to name the topics they want to discuss. and usually it is something like love, money, career, health, family.
And I say here that I promise I will let them know WHAT ELSE, if anything, is coming into their lives, even if those are topics they do NOT think to mention, so that we will have a full view of their life. They are willing to tell you what's on their mind if you are also willing to tell them that you will alert them to any other things that may be coming down the road.
They like that, and that's why they are calling. Then, I have a LIST of things I know is on their mind. And if the call bogs down I can go right into information on one of the other topics I know will interest them.
I don't believe in working too hard on this line. This isn't a private consultation where you have an hour or two with a high-paying client. This is essentially telemarketing and you cannot wow, zow, and dazzle each caller with the depth of your psychic ability or you will go nuts. Just ask them their topics, and use that as a guide.
Then I say, well, let's start with topic number one, here, your love life. Is there a person that you are close to at the moment? And if they say no, then say, well, I feel someone around you and if you have been close to someone within the past two years, it will show up psychically, so did you end a relationship within the last two years? It is a rare person who isn't either attached to someone now, or has a crush on someone now, or who has broken up with someone recently.
Then get the first name and birthdate of that person. And you are home free. You've got names, birthdates, and a relationship sitting in front of you, and I know very few readers that can't get a 15 minute commentary on that alone. And if that bogs down, you've got the other topics.”
Page 16 BILLING COMPLAINTS “Recently I was charged $216.64 by the Many callers complain that they have been billed phone company for two calls made to a hundreds of dollars for calls to a toll-free 800 number. They insist that they never dialed a 900 number, psychic network by my eleven-year-old which carries a toll charge. In regard to PRN, this has daughter...Despite having an existing block not been verified and representatives of the company on my telephone against 900 numbers and say it cannot and does not happen. services, my eleven-year-old granddaughter was able to access the psychic through an While the technology exists to charge calls made to 800 number...I would be interested in an 800 number, such a system does not appear to be in use by “Miss Cleo” and the Psychic Readers Network. knowing if these charges are explained Callers dial an 800 number looking for a "free explicitly and clearly enough for an 11- reading" and they subsequently are directed to dial a year-old to understand”
900 number. The New York State Consumer -- Letter from C. Key Protection Board continues to investigate these complaints of charges imposed for calls made to an Pennellville, N.Y. 800 number.
Parents complain that the psychic industry does too little to prevent minors from calling “Miss Cleo” and racking up hundreds of dollars in phone charges. In “At the onset of the call, I stated that I cases brought to our attention, the CPB, AT&T and was only interested in the three “free” others have worked with Access Resource Services, minutes. The operator assured that there the parent company of PRN, to have such charges was no problem, that after 3 minutes a removed from consumer bills. very loud tone would sound to indicate that the free time was up...After a couple The CPB has received many complaints filed by consumers who allege that Access used overly of minutes no tone sounded and I aggressive statements in phone calls and collection expressed my concern. The operator said, letters to consumers. “Don’t worry, you can’t miss it. It is a very loud tone.”...At this point my credit Generally, the Consumer Protection Board has had standing is being threatened. I know I success in working with PRN to remove charges have rights against this kind of fraud!” disputed by consumers. Still, too many billing questions have occurred. -- Letter from A. McDermott New York City, following In most cases, AT&T will remove 900 charges a $74.85 charge to her phone from a single billing cycle if a consumer files a complaint against those charges. AT&T still forwards a portion of the bill to the 900 phone line to cover AT&T’s cost of the original phone service (usually about eight percent of the total bill).
In many cases, the company tries to recoup this “chargeback” from the consumer. For help in challenging bills from psychic lines, consumers can contact the Consumer Protection Board at 1-800-697- 1220 or www.consumer.state.ny.us .
Page 17 TELEMARKETING COMPLAINTS
On October 30, 2001, Galactic Telecom Inc., one of the many corporate names and holdings associated with the Psychic Readers Network, was served with a Notice “They (“Miss Cleo”) called. It was a of Apparent Liability in regard to New York State’s recording, telling me I could get a free, “Do Not Call” Telemarketing Law. five-minute reading. But I couldn’t hang The CPB’s notice stated that the Psychic Readers up. It wouldn’t disconnect! What if I had Network had apparently violated the law on at least 112 to call 911?” -- Mrs. Audrey G. of occasions and faces a possible fine of $224,000 -- up Webster, N.Y. to $2,000 for every violation. It is the largest number of apparent violations and the largest potential “Do Not Call” fine by the CPB to date.
"The time has come to end ‘Miss Cleo's’ overly aggressive, misleading sales techniques in New York “I must have gotten 20 calls (from “Miss State," CPB Chairman Rhodes said. Several New Yorkers have complained that they have received Cleo”)-- all recordings. I couldn’t get the multiple phone calls from “Miss Cleo” in a two- or number to stop (the telemarketing calls) three-week period. Some families, even elderly from coming.” -- John E. of Bronxville couples, have received as many as three telemarketing calls in a single day.
"We requested information from ‘Miss Cleo’ regarding its apparent telemarketing violations in late June. The company denied any wrongdoing in its response. The company is continuing to place “I dialed the 800 number and I must unsolicited telemarketing calls to New Yorkers," said have called 25 times to their customer Rhodes. The fines facing “Miss Cleo” could grow if the service number. It was always busy.” company does not comply with the law. Additional complaints have arisen since the CPB’s initial inquiry -- Mark G. of East Northport to “Miss Cleo.”
Governor George E. Pataki signed the “Do Not Call” Telemarketing Law on October 12, 2000. It took effect in April of 2001 and enforcement began one month later. There are now almost two million New York families and individuals registered for protection under “They called me 12 times but I the “Do Not Call” telemarketing law, making it the only filed one complaint. They largest registry of its kind in the nation. told me I had to dial a long- distance” to stop these New York is among five states that have brought telemarketing calls. -- Dan L. of actions against PRN or its affiliates regarding telemarketing or other consumer complaints. Ridge, N.Y. Settlements have been reached with Missouri and Florida. Despite the lawsuit and settlement, Florida’s Attorney General’s Office continues to investigate PRN for alleged deceptive practices in that state.
Page 18 DIRECT MARKETING MACHINE “Please make sure you get the first name, last name, address, city, state and zip on every A major source of revenue for the psychic caller! We need those names and addresses and industry is the creation and sale of direct the e-mail address on every single caller. We marketing lists. They contain the names, need those e-mail addresses!” addresses and phone numbers of people who called a psychic line like those of “Miss Cleo.” -- PRN President Steve Feder from his In too many cases, people who have never “daily message” to psychic readers called a psychic line can be caught in this (Oct. 9, 2001) direct-marketing web. The results are e-mail, telemarketing and other solicitations.
With these marketing lists, PRN and other companies churn out letters, e-mails and “They use the addresses to do marketing to telemarketing calls to people, seeking return business or new callers to the "psychic" phone create more calls coming for the readers and lines. These mailing lists, known in the direct is really a very sound business practice. And marketing business as "sucker lists," are also they pay the bookstores 25 cents for each one sold to list brokers. List brokers then resell that they don’t already have.” these names, phone numbers and addresses to -- Blue Lotus, a PRN subcontractor other companies for their telemarketing and advertising campaigns.
But the CPB's investigation of PRN's telemarketing shows that many New Yorkers are receiving a barrage of telemarketing calls, e-mails and letters without ever contacting “Reach these hard core psychic callers who are PRN. Gina V. and her husband, Ronald, are an phoning in to speak with the world renown elderly couple in Syracuse who received astrologer Miss Cleo.” numerous tape-recorded phone calls from -- sales advertisement for names, “Miss Cleo”. In these telemarketing calls, addresses and other information “Miss Cleo” urges people to call her psychic line quickly because she has "urgent news" to from Miss Cleo callers. give them. This couple was already dealing with the stress of an urgent situation.
"My husband had a heart attack and we just got home from the hospital when we got a call (from “Miss Cleo”) at 8:30 p.m.," said Mrs. V., “Calling a Psychic is big business. These 800 describing one of four telemarketing calls from callers are influenced by Miss Cleo to get PRN. "So in the middle of me trying to give solutions to their problems thru Tarot Cards and him his medication I get another phone call from this woman. It just irritates me…Who Astrology Readings by a Psychic. They have the cares about psychics? money and the time to call again and again for answers to life's problems.”
As with other New Yorkers targeted by -- direct marketing sales ad PRN, it is unclear how this couple found themselves on a PRN telemarketing list.
Page 19 DIRECT MARKETING (cont’d.) Let me give you a few pointers: “Psychic readers” are under pressure to come up with names and addresses to feed PRN's direct- I answer the phone: Hello how are you marketing machine. today? And I say: When “readers” log on for work they hear a taped 1) May I have your first name? message from PRN principal owner Steven Feder. 2) And the city and state you are calling On the October 9, 2001 message, Feder pleaded with from this evening? readers for more personal information about the people who call. “Please make sure you get the first 3) And your date of birth. name, last name, address, city, state and zip on every 4) Your zip code in (fill in the name of caller! We need those names and addresses and the the state). for example, "your zip code in e-mail address on every single caller. We need those colorado" e-mail addresses!” 5) And the spelling of your last name. “Readers” and brokers can earn extra money for 6) and, in .....(the name of the city)... supplying PRN with names, phone numbers and your street address. addresses. The companies say they verify these 7) any email address for you on the addresses and phone numbers against other internet? databases to ensure their legitimacy.
E-mails from “Miss Cleo” and PRN are (if you follow that format, they will distributed by Traffix Inc., a direct marketing naturally, automatically give you their company in Pearl River, N.Y. Traffix has had a info without realizing it) long-standing business relationship with PRN. It has operated PRN’s telemarketing and provided network services while agreeing to drop its own 900 psychic -- advice to a psychic reader service. from her “manager”
Now Traffix provides a means for “Miss Cleo” to reach millions of people through e-mail generated by a Traffix website called GroupLotto.com. Traffix calls it an “on-line data engine.”
Traffix claims to have databases containing marketing information on more than 50 million consumers, including 18 million on-line, around the “If they do not want to give you their world. address then say, ‘The network will send you a free deck of tarot cards just When it launched GroupLotto.com in December, for calling today.’” 1999, Traffix sent out some 10 million e-mails to people across the country. Anyone who opened a -- Tip sheet for readers portion of these e-mail advertisements was, from Corris Counseling, according to Traffix, giving the company a “psychic” recruiter “permission” to send them more e-mails, including solicitations from “Miss Cleo”.
Page 20 DIRECT MARKETING (cont’d.)
Traffix sells the names and phone numbers, as well as postal and e-mail addresses of people who have PRN has a line for Customer Service called “Miss Cleo.” Walter Karl, a division of the line where consumers can have their nation’s largest list broker, InfoUSA, located one floor names removed from telemarketing, above Traffix in the same office building in Pearl e-mail and other direct marketing from River, N.Y., sells the membership list of the “Miss Miss Cleo: Cleo Astrology Club.” The list includes 500,000 e-mail addresses and names, as well as 250,000 postal 1-800-211-8326 addresses, updated monthly. By selling this personal Consumers on New York State’s “Do information, Traffix generated more than $9.6 million in just six months this year., according to filings with Not Call” Telemarketing Registry also the U.S. Securities and Exchange Commission. can prevent calls from psychic lines. Consumers can register free of charge During the six months prior to May 31, 2001, more by dialing toll-free at 1-866-622-5569. than 988 million promotional pieces were e-mailed by Traffix. During the same time period last year, just 5 million e-mails were sent by Traffix. This shows the tremendous increase in the number of people contacted by this “online data engine.” Although Justatip offers this “tip service” free of charge, Traffix still profits because the users and Traffix once operated its own 900 “psychic visitors to this website can provide more information services.” Three telephone companies in 1998 to Traffix, PRN and other marketing companies. eventually refused to bill consumers on behalf of Traffix after consumers complained that they were The State of Pennsylvania is in negotiations with improperly billed by Traffix. As a result, Traffix left Traffix to resolve complaints against its telemarketing the psychic call business, but agreed to a partnership program on behalf of Qwest Communications, a with PRN in December 1998. Traffix has helped PRN major, long-distance telephone service provider. The grow to become the leading 900-psychic line provider Pennsylvania Attorney General accused Qwest and in the nation. In return, PRN agreed to pay Traffix $6 Traffix of using deceptive advertising, such as offering million in royalties, according to the agreement. free airline tickets, to customers who would switch their long-distance service to Qwest. Customers PRN, meanwhile, helps Traffix increase its direct complained those gifts were never delivered. While mail business by supplying an increasing number of Qwest settled with Pennsylvania, the complaint names, e-mail addresses, street addresses, and phone against Traffix is unresolved, according to the numbers to Traffix. Companies who want to be part of Pennsylvania Attorney General’s office. this direct-marketing blitz are marketed by PRN with claims that its outbound e-mail campaigns “will drive The result of these interlinked operations is that traffic to your website...It has made millions in just PRN’s leads -- and the resulting calls to New York’s weeks for GroupLotto.com.” consumers -- can come from a variety of sources. And the reverse is true as well. A call to PRN may Still another cog in this direct marketing machine is generate sales calls to consumers from sources that Justatip.com, a website recently purchased by Traffix. seemingly have no relationship to PRN’s psychic Justatip.com is a website where anyone can send a business. “free, anonymous e-mail to your friends telling them about their annoying problems.” The service allows these anonymous darts to be thrown at a neighbor, boss or co-worker regarding such personal issues as their hygiene, personality and fashion style.
Page 21 Her real name is Youree Cleomili Harris. She resides in SO WHO REALLY Miami, Fla.
But to millions of people around IS MISS CLEO? the world she is “Miss Cleo, the Master Psychic.”
Many people have wondered Excerpts from Miss Cleo’s who Miss Cleo really is. Their Official Biography speculations have filled many news stories regarding this television celebrity. “As a devoted Shango Shaman in training for well over twenty years, Miss Cleo’s been helping people all her life. In a very short period of time, Miss Harris said she worked as a stay-at-home psychic she’s become a household name simply by the before auditioning to become the “spokes-psychic” for the sheer force of her psychic gifts, which she’s Psychic Readers Network, the largest psychic service in honed since she was a little girl in the Caribbean. the world. She is a big reason why the company generates Born in the Trelawny section of Jamaica, Miss between $300 and $400 million a year. Cleo says she noticed at very young age that she had unique talents. “Dead people used to come and talk to me in my dreams when I was a little gal,” Reached at her company, Wahgwaan Entertainment Inc. she says, adding that she felt she had to hide her in Fort Lauderdale, Ms. Harris would not comment on the amazing abilities while growing up. business practices of the Psychic Readers Network. “I’ve “My mother wanted me to be an attorney, but got to keep my breath fresh” given the contracts she has me wasn’t feeling it all.” signed with the Psychic Readers Network, she said. Eventually, Miss Cleo discovered and explored Lukumi and other metaphysical arts. Lukumi originated in West Africa in what is now Nigeria Miss Harris has been associated with the psychic and Benin. It is the traditional re ligion of the industry for many years and once made her living by Yoruba peoples there. The slave trade brought answering calls at home. She insists that she still takes many of these people and their soulful religion to phone calls just like the hundreds of stay-at-home psychics the shores of Cuba, Brazil, Haiti, Trinidad and who respond to callers looking for “Miss Cleo.” Puerto Rico among others. “I am a Shaman, which is like a spiritual guide,” says Cleo. She is arguably the most-popular and recognizable Miss Cleo and other Lukumi adherents believe figure in the brief history of the telephone psychic in one god known as Olorun or Olodumare. For business. her insightful and inspirational readings, Miss Cleo relies on her spirits to communicate through the Wahgwaan Entertainment Inc. is the speaker’s bureau cards and through her directly. “The cards are just she established for her fundraising to benefit programs tools,” she says, “when you see me on the commercial, sometimes it is not me talking—it’s dealing with sickle cell anemia. She suffers from the blood my spiritual guides. They tell me about people…” disorder. Why does Miss Cleo concentrate all her energies and open herself as intensely as she does? “I would bury all my money at the bottom of a The answer’s simple: Miss Cleo’s aspiration has volcano,” Ms. Harris said. It’s her children and helping always been to support and encourage others on people with her psychic gifts that are more important, she their own spiritual journeys. Now, almost overnight, Miss Cleo’s become an said. eminent psychic celebrity! By broadcasting her shows on hundreds and hundreds of local broadcast There are Miss Cleo Fan Clubs scattered across the stations and cable channels, Miss Cleo’s achieving Internet. Often people ask whether her Jamaican accent is her life–long dream to assist people from all over real. the world! Always ready to tell her truth, Miss Cleo’s As Miss Cleo would say, “I’m keeping it real. From the spellbinding us, not only with her astounding psychic talents, but also with her compassionate heart.” and forthright ways! Footnotes
Page 7 Chloe Quinn e-mail message Monday April 9, 2001. Quinn is a manager of psychic readers employed by Buckwood Communications.
Page 8 Chloe Quinn e-mail message Monday April 9, 2001.
Page 8 Chat room message posted by “AmyJo” in “900Psychics,” a message board offered by xsorbit.com, July 17, 2001.
Page 9 Jobtrove.com, a job search website. Job posting by JL Enterprises, a broker for PRN based in Wildomar, California.
Page 9 Chat room message posted by “Autumn” in “900Psychics,” a message board offered by xsorbit.com, August 27, 2001.
Page 9 Instructions for “psychic readers”: www.tarot.fanspace.com.
Page 10 “Rea Pearson”: work-at-home adviser to potential psychic readers on website www. angelfire.com/amiga/expose.
Page 10 “P. Brown”: former PRN psychic reader.
Page 11 “Conversation Around the Psychic Water Cooler”: 8 Chat room message posted by “Cerridwyn” and “Babee” in “900Psychics,” a message board offered by xsorbit.com, July 24, 2001.
Page 11 “Warning from a psychic reader”: A message posted on Yahoo’s “The Official Miss Cleo Club” by Kelly, a reader from Fort Lauderdale, Fla.
Page 12 “Answering a Question with a Question”: From www.llamite02business, a website promoting Buckwood Communications, the largest “bookstore” or subcontractor in the Py- schic Readers Network.
Page 12 “Listening and Questions” : ibid
Page 13 “Dear Bob”: E-mail from “Miss Cleo” Oct. 10, 2001.
Page 14 “Psychic Recruter in Utah”: “Confessions of a Small Town Psychic” By merry lu, 12/18/00 edition of the Hard News Café, Utah State University Department of Journalism and Communication.
Page 14 June Barthony interview. Ms. Barthony is a New York State resident on the “Do Not Call” Telemarketing Registry who filed a telemarketing complaint against “Miss Cleo.”
Page 19 Sales advertisement: The Rich List, a list brokerage service.
Page 19 Direct marketing sales ad: Walter Karl, a list brokerage service.
Page 20 “Let me give you a few pointers”: Chloe Quinn e-mail message Monday April 9, 2001.