Brown Clamps Down on Companies Luring Californians into Internet Scheme Promising Riches
Ventura -- Attorney General Edmund G. Brown Jr. and
Ventura District
Attorney Gregory D. Totten today clamped down on two companies --
Imergent, Inc.
and Stores On Line -
that "falsely promised" customers
that they could earn full-time income by selling merchandise over the
Internet.
"These companies falsely promised customers that they could get
rich by selling merchandise over the Internet," Attorney General Brown
said. "In reality, many customers were left in deep debt, paying high
up-front costs, and never earning a dime from their websites. This
agreement allows these customers to get back some of their losses."
These two companies sell website-based "stores," in packages of
three or six websites, at a cost of between $2,700 and $6,000. They
market their products at seminars, which they advertise through
postcards and other mailings often sent to senior citizens with limited
Internet experience. They often offer seminar attendees a meal and a
free gift such as an MP3 player.
The companies made statements such as:
"Are you ready to claim YOUR share of eBay's annual $3.2 Billion in
revenue? By attending our FREE 90-minute ‘eBay Entrepreneur Training'
Conference you will learn how eBay PowerSellers run successful Internet
businesses and how an elite few use additional strategies to boost
revenues way beyond the average seller. Learn how nearly half-a-million
people create full-time incomes using eBay!"
The companies have agreed to the following terms:
- Pay $147,600 for
full restitution to California consumers who
have complained to the Attorney General's Office, the Ventura County
District Attorney, or directly with StoresOnLine.
- Pay $202,400 for restitution to California consumers who submit complaints within
90 days.
- Cancel all outstanding financing contracts for consumers who have
complained.
- StoresOnLine will also send a letter to all California purchasers
who have bought since January 1, 2008, offering them a 15-day period
within which to cancel the transaction and receive a refund.
- Register with the state as a seller of Seller Assisted Marketing
Plans
- Provide a 15-day right to cancel for purchasers over the age of 65
- Disclose clearly the circumstances under which StoreOnLine will
charge consumers a web site hosting fee, and provide consumers the
opportunity to opt out of hosting websites with Imergent, Inc. and
Stores On Line.
- Provide the Attorney General's Office with recordings of sales
presentations and notify the Attorney General and Ventura County
District Attorney's Office when sales presentations take place in
California, so they can be monitored.
These types of schemes are promoted on TV infomercials, on the
Internet, by direct mail, at trade shows, at invitation-only seminars,
and through ads that may appear in the classified sections of
newspapers or magazines. The ads promise big earnings, and promise that
no selling or other experience is necessary.
If you believe you are a victim
and have not yet made a complaint
to the Attorney General's Office, you may be entitled to restitution if
you submit a complaint within 90 days.
To submit a complaint with the Attorney General's Office, please file a
complaint online at http://ag.ca.gov/consumers/general.php
or call the Public Inquiry Unit at 1-800-952-5225.
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