Two Los Angeles County companies have recently been hit with stiff penalties for advertising and environmental violations, state regulators announced this month.

The ad problem was tied to downtown L.A. calling card provider Total Call International Inc. The company was hit with a state Superior Court judgment ordering Total Call to pay $300,000 in penalties and surrender $1.5 million in profits for allegedly making false and misleading claims in advertising its calling cards to Asian and Hispanic customers. The California Public Utilities Commission had sought the judgment against the company and announced the decision last week.

Among the allegations were that Total Call overstated the amount of minutes available on its calling cards and charged substantial fees when the actual minutes on the cards expired.

Robert Yap, chief legal officer for Total Call, said state regulators contacted the company two years ago and Total Call immediately clarified its fees. He added that the company cooperated with the investigation and agreed to what he called a settlement with state regulators and prosecutors.

The environmental problem was tied to Sunrise Ford, an auto dealership with outlets in North Hollywood and Fontana. Sunrise was fined $175,000 by state air regulators for allegedly selling vehicles with illegal modifications to boost fuel efficiency.

According to California Air Resources Board Chair Mary Nichols, Sunrise Ford placed devices called ?uel maximizers?in the engines of new vehicles for model years from 2005 through 2007. These devices change the flow of air into the engine as it mixes with gasoline, supposedly increasing fuel efficiency. Any such modifications on new vehicles made after the dealer takes delivery are illegal.

Calls to Sunrise Ford? North Hollywood dealership were not returned.

Data Crackdown

Businesses that extend credit or make loans to customers beware: Stiff new regulations to safeguard customer data will be in force as of Aug. 1.

As a way to fight data breaches and the rise of identity theft, the Federal Trade Commission is requiring every business that makes loans or extends credit to customers ?up to 2 million businesses in all ?to draw up a plan to guard against data breaches and identity theft. These businesses must also train employees to respond to any early warning signs of suspicious activity that could indicate identity theft.

Identity theft is one of the fastest-growing crimes in the nation: Last year, an estimated 9 million individuals were victims of having their identity stolen through theft from credit card accounts, lines of credit fraudulently opened in their name or bogus medical insurance claims.

Many banks and lending institutions have plans in place to reduce the likelihood of identity theft, but the FTC regulations ?in the works for four years ?go much further. Auto dealers, utility and phone companies, department stores that issue their own credit cards and stores with ?0 days same as cash?financing options all fall under this new rule. Any entity that accepts installment payments ?including medical offices, and non-profit and government agencies ?is also covered.

Those businesses and agencies that don? have plans in place by Aug. 1 are subject to stiff fines and penalties, though the FTC has so far declined to specify the potential fine amounts.

?he vast majority of companies that have to comply don? know about this,?said Steve Bereak, chief executive of IdentityForce, a Boston company that helps companies combat identity theft.

FTC Chairman Jon Leibowitz cited the need for more outreach to businesses, and on April 30 he announced a three-month delay in enforcing the rule, which was going to take effect May 1.

Companies subject to the rule must follow four basic steps: conduct a risk analysis to determine how much of threat identity theft poses to their customers, draw up a plan to reduce that threat and contain damage when identity theft occurs, train employees to be on the lookout for signs of identity theft and report any identity theft incidents to law enforcement.

For more information, log on to the FTC? Web site at ftc.gov and look for information about the ?ed Flag?rule.

License Verification

Businesses and consumers no longer have to take someone? word that they are a licensed professional or contractor: They can now verify a license holder with a quick online check.

The California Department of Consumer Affairs recently launched a Web site, InquireBeforeYouHire.ca.gov, for businesses and consumers to use in order to verify whether a business or individual has a license. Practitioners in fields ranging from accountants to vocational nurses all need licenses from various state agencies in order to operate legally in California.

The site also offers guidance for individuals or businesses seeking to obtain a professional license.

The aim of the site is to reduce the number of unlicensed professionals and to crack down on illegal business activity. If a business or individual is unable to verify someone claiming to have a license, they are advised to contact the Consumer Affairs Department.

Staff reporter Howard Fine can be reached at [email protected] or at (323) 549-5225, ext. 227.