Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC settlements ban sale of work-at-home business opportunities, (Jun 27, 2013)
Organizations Mentioned:Guaranteed Communications LLC | NAMAA LLC | NORTH AMERICA | National Opportunities LLC (Arizona) | National Opportunities LLC (Nevada) | North America Marketing and Associates LLC | Precious Metals Resource LLC | Superior Multimedia Group LLC | TM Multimedia Marketing LLC (Arizona) | TM Multimedia Marketing LLC (Nevada) | Wide World of Marketing LLC | World Wide Marketing and Associates LLC
By William Zale, J.D.
The operators of a scheme that defrauded consumers who were trying to start their own online businesses have been permanently banned from selling work-at-home business opportunities under seven settlements with the FTC (FTC v. North America Marketing Associates, LLC, Case No. 2:12-cv-00914-DGC File No. 102 3247, June 20, 2013).
The settlements resolve FTC charges against 20 corporate and individual defendants who falsely told consumers they would build and host websites, and provide marketing expertise, to enable consumers to profit when shoppers clicked through the websites to buy things from “Fortune 500” retailers. After the agency filed its complaint in May 2012, the court halted the allegedly deceptive practices and froze the defendants’ assets pending litigation.
In addition to the ban on selling work-at-home business opportunities, the settlement orders announced today permanently prohibit the defendants from misrepresenting material facts about any products and services, violating the FTC’s Telemarketing Sales Rule, collecting money from customers, selling or otherwise benefitting from consumers’ personal information, and failing to properly dispose of customer information.
Named in the FTC’s complaint are North America Marketing and Associates LLC, NAMAA LLC, TM Multimedia Marketing LLC (Nevada), TM Multimedia Marketing LLC (Arizona), National Opportunities LLC (Nevada), National Opportunities LLC (Arizona), World Wide Marketing and Associates LLC, Wide World of Marketing LLC, Precious Metals Resource LLC, Guaranteed Communications LLC, Superior Multimedia Group LLC, Joseph Wayne Lowry, Kimberly Joy Birdsong, Sarah Lynne Stapel, Alyisse Maloi Tramel, Daniel Vigil, and Tracy Jerome Morris, and relief defendant Sheila Ann Lowry, who allegedly profited from the illegal practices. Today’s announced actions include an amended complaint naming former relief defendants Carl Edward Morris Jr. and Marketing Strategies LLC as liability defendants.
The settlement orders impose a suspended $17.9 million judgment against most of the defendants. The full judgments will become due immediately if the defendants are found to have misrepresented their financial condition.
The Commission vote authorizing the staff to file the proposed orders and amended complaint was 4-0. The proposed orders were filed in the U.S. District Court for the District of Arizona on June 20, 2013; the proposed amended complaint will be filed soon, according to the FTC.
Companies: North America Marketing and Associates LLC; NAMAA LLC; TM Multimedia Marketing LLC (Nevada); TM Multimedia Marketing LLC (Arizona); National Opportunities LLC (Nevada); National Opportunities LLC (Arizona); World Wide Marketing and Associates LLC; Wide World of Marketing LLC; Precious Metals Resource LLC; Guaranteed Communications LLC; Superior Multimedia Group LLC
News: ConsumerProtection FederalTradeCommissionNews