Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Hidden assets trigger imposition of $26 million FTC Act judgment, (Jul 31, 2014)
Organizations Mentioned:Infusion Media, Inc.
By Jody Coultas, J.D.
The federal district court in Las Vegas has imposed a $26.9 million judgment against the operator of a work-at-home scheme who lied about his financial assets to the FTC when he agreed to settle with the FTC’s claims in 2010 (FTC v. v. Infusion Media, Inc., FTC File No. 092 3060, Civil Action No. 2:09-cv-01 11 2-GMN-VCF).
The work-at-home scheme operated under names such as “Google Money Tree,” “Google Pro” and “Google Treasure Chest.” Advertisements for the scheme offered consumers a low-cost kit that consumers could use to earn $100,000 in six months. In 2009, the FTC alleged that the operators of the scheme lured consumers into divulging their financial account information and failed to disclose that they would be charged $72.21 a month.
As part of a settlement agreement with the FTC, the operators were banned from negative option marketing and from making misrepresentations to consumers. The operators turned over more than $3.5 million in cash and other assets to repay consumers. One operator, Jonathan Eborn was excused from liability for the vast majority of the judgment (the total consumer injury) based on his inability to pay. Under the terms of the settlement, if any defendant misrepresented their financial condition, the full judgment would become due.
According to an FTC announcement, Eborn failed to report cash and assets, misrepresented his control over certain businesses, and failed to report his residence and his acquisition of personal property. The Nevada court reinstated the full judgment of $26.9 million against Ebon.
Companies: Infusion Media, Inc.
News: ConsumerProtection FederalTradeCommissionNews