Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Companies settle FTC business opportunity scam charges, (Feb 19, 2014)

By Jody Coultas, J.D.

Marketers of purported business opportunities to unemployed and underemployed people have agreed to settle FTC charges that they made false promises, the FTC announced today (FTC v. Shopper Systems, LLC, Dkt. 1:12-cv-23919, File no. 112-3176).

In October 2012, the FTC filed a complaint against Shopper Systems LLC, Revenue Works LLC (also doing business as Surplus Supplier), EMZ Ventures LLC, The Veracity Group LP, Brett Brosseau, Michael Moysich and Keith R. Powell. The complaint alleged that the companies and individuals misled consumers who were seeking to run their own business providing mystery shopping services to retailers, and tricked them into paying money to join programs with recurring monthly charges.

The settlement order bans the companies from selling business or work-at-home opportunities and from sending text messages. The companies must also surrender assets to the FTC. One company must also surrender telecommunication equipment to a court-appointed receiver for liquidation. The full monetary judgments will become due immediately if the defendants are found to have misrepresented their respective financial conditions.

A federal court approved the filing of an amended complaint adding additional companies as relief defendants who profited from the scheme but did not participate in it.

News: ConsumerProtection FederalTradeCommissionNews