Judge Halts Business-Opportunity Marketers

Share this article:
A federal district court judge in Nashville, TN, has issued a restraining order against seven corporations and five individuals accused of fraudulently marketing business opportunities through prerecorded messages, the Federal Trade Commission said yesterday.


The group is charged with defrauding consumers who lost tens of thousands of dollars in the scheme. The FTC also accused the group of repeatedly violating the national no-call list.


In August 2001, the group began offering business ventures involving the sale of telephone calling cards. Prices ranged from $12,995 to $71,120, according to the FTC. The group marketed its offerings through sales seminars and used pre-recorded messages to invite consumers to the seminars.


In September 2003, the group began marketing public-access Internet terminals for prices ranging from $15,995 to $249,950, according to the FTC. It promised that the terminals would generate revenue from advertising and usage fees, the FTC said.


At the end of 2003, the group moved its base from Florida to Tennessee. In January 2004 the group began marketing Internet terminals for $15,435 to $127,495.


The group failed to provide accurate disclosures and earnings-claim documents required under the federal Franchise Rule and misrepresented customers' rights to cancel and receive refunds, according to the FTC. The group also left prerecorded messages with consumers whose telephone numbers were listed on the no-call list after the Oct. 17, 2003, effective date of the list.


Companies charged by the FTC include: OneSetPrice Inc., RPM Marketing Group Inc., and National Event Coordinators Inc., all of Orlando, FL; First Choice Terminal Inc., Baton Rouge, LA; First Choice Terminal Inc., Scottsdale, AZ; Internet Marketing Group Inc., Lebanon, TN; and B & C Ventures Inc., Reno, NV. The individuals named in the case were David G. Cutler, Cindy Gannon, Paul D. Bonnallie, Tisa Christiana Spraul and Michael J. Hatch.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in News

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

The Risk of Taking Email Full Throttle: Answers

The Risk of Taking Email Full Throttle: Answers

As VP of marketing for the fledgling Targeted Outreach, Tony Smith's charge was to help grow the company—but his gut felt he was walking the ethical line. How should he ...

Word to the Wise: Programmatic Direct

Word to the Wise: Programmatic Direct

What is programmatic direct?

B2B Marketers Can Now Self-Serve Ads on Facebook Exchange

B2B Marketers Can Now Self-Serve Ads on Facebook ...

Sitescout's new integration with FBX opens up access to any size marketer, minus campaign spend minimums, according to the RTB company.