| Re: Turn $6.00 into $6,000.00 - CLICK HERE for the Pet Manual Forum Home Page |
| Rhonda |
Everyone makes stupid choices in their lives. Thanks to Kris Baker for
pointing this out
http://www.ftc.gov/opa/2003/09/universal.htm
For Release: September 26, 2003
Chain Letter Spammers Settle FTC Charges
Operators that used deceptive spam and a Web site to recruit consumers
into
an illegal chain letter scheme have agreed to settle FTC charges that
their
scam violated federal laws. The settlement bars the defendants from
promoting or selling pyramid or chain mail schemes, misrepresenting
potential earnings claims, misrepresenting the legality of such
schemes,
failing to disclose the profits or earnings of other participants in
any
multilevel marketing program, and providing others with the means to
make
misrepresentations.
In April 2002, as part of an Internet fraud sweep, the FTC charged
that
Universal Direct and its principals, Linda Jean Lightfoot and Charles
F.
Childs were sending spam that promoted "a MLM (multi-level marketing)
Gifting Program that CAN'T FAIL." The spam allegedly claimed that
participants could earn $10,000 in cash gifts within a few months of
joining
and urged consumers to recruit other participants. The FTC alleged the
scheme is an illegal chain-letter; that the earnings claims were
false; and
that most participants would fail to make any money. The FTC asked the
court
to halt the illegal scheme and freeze the defendants' assets pending
trial.
Following the preliminary injunction, the defendants refunded all the
money
they had collected from investors in the scheme. The settlement ends
the
litigation.
The settlement bars the defendants from:
participating, promoting, or selling any prohibited marketing programs
-
such as chain letters or pyramid programs;
misrepresenting potential earnings or benefits from marketing any
product or
service;
misrepresenting the legality of any program;
failing to disclose the profits or earnings of other participants in
any
multi-level marketing program; and
providing others with the means and instrumentalities to make
misrepresentations.
The settlement also bars the defendants from selling, renting,
leasing, or
disclosing their customer lists.
The settlement is based on financial information provided by the
defendants.
If the court finds that the defendants failed to disclose assets or
made
other material misrepresentations, the FTC can reopen the matter to
seek
consumer redress or disgorgement of ill-gotten gains. The settlement
also
contains certain bookkeeping and record keeping provisions to allow
the
agency to monitor compliance with its order.
NOTE: A stipulated final judgment and order is for settlement purposes
only
and does not constitute an admission of a law violation.
Copies of the stipulated final judgment and order are available from
the
FTC's Web site at http://www.ftc.gov and also from the FTC's Consumer
Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington,
D.C.
20580. The FTC works for the consumer to prevent fraudulent,
deceptive, and
unfair business practices in the marketplace and to provide
information to
help consumers spot, stop, and avoid them. To file a complaint, or to
get
free information on any of 150 consumer topics, call toll-free,
1-877-FTC-HELP (1 877-382-4357), or use the complaint form at
http://www.ftc.gov. The FTC enters Internet, telemarketing, identity
theft,
and other fraud-related complaints into Consumer Sentinel, a secure,
online
database available to hundreds of civil and criminal law enforcement
agencies in the U.S. and abroad.
MEDIA CONTACT:
Claudia Bourne Farrell
Office of Public Affairs
202-326-2181
STAFF CONTACT:
James Kohm
Bureau of Consumer Protection
202-326-2640
(FTC File No X020028)
(http://www.ftc.gov/opa/2003/09/universal.htm)
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