Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Marketer banned from selling work-at-home, business opportunities under settlement with FTC, (Jul 22, 2013)

By Jeffrey May, J.D.

A work-at-home opportunity marketer has agreed to settle FTC charges that he misrepresented that consumers could earn from $200 to more than $1,000 per day by processing applications for rebates or credit cards offered by certain marketers. The FTC sued Christopher Andrew Sterling in November 2012 as part of “Operation Lost Opportunity,” a federal-state crackdown on scams that falsely promised jobs and opportunities to “be your own boss” to people who are unemployed or underemployed. To settle the charges, Sterling has agreed to refrain from selling work-at-home and business opportunities under the terms of a proposed consent decree (U.S. v. Sterling, FTC File No. 122 3279, Case No. Case 3:12-cv-02736-JAH-DHB, announced July 22, 2013).

According to the FTC's complaint, Sterling violated the FTC Act and the Commission's Business Opportunity Rule, which requires business opportunity sellers to provide specific information to help consumers evaluate a business opportunity. The defendant's websites falsely promised that consumers could earn up to $1,000 per day from data-entry work processing rebate and credit card applications online, but the claimed earnings and the promised business were not delivered, the agency alleged.

In addition to prohibiting Sterling from selling any work-at-home or business opportunity, the proposed consent decree would prohibit the defendant from misrepresenting material facts about any products and services, selling or otherwise benefitting from consumers’ personal information, and failing to properly dispose of customer information. The order imposes a $69,289 judgment that will be suspended based on Sterling’s inability to pay. The consent decree is awaiting approval in the federal district court in San Diego.

News: ConsumerProtection FederalTradeCommissionNews