FTC Wins Judgement Against $450 Million Revenue Infomercial Makers

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The Federal Trade Commission says a trio of popular get-rich-quick programs — all backed by the same two people — took consumers for a total of $450 million by misleading them into believing they could quickly earn piles of cash in real estate or Internet marketing.

FTC Wins Judgment Against Makers Of 3 Get-Rich-Quick Infomercials - The Consumerist


A few snippets of info that I found interesting:

The court sided with the FTC in finding that the defendants failed to adequately disclose that consumers who purchased the systems would be enrolled in a $39.95/month subscription plan. Oh — and customers' payment information was used without their express informed consent, in violation of the FTC Act and the Telemarketing Sales Rule.

The FTC alleged that less than 1% of consumers who purchased the systems made a profit.

There were "personal coaching services" were sold to consumers for as much as $14,995.
#$450 #ftc #infomercial #judgement #makers #million #revenue #wins
  • Profile picture of the author LegitIncomes
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  • Profile picture of the author Joseph Robinson
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    Absolutely awesome. I remember the Jeff Paul one from when I first learned about the MMO world a few years ago. That infomercial was on every night (Comedy Central I think).
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  • Profile picture of the author debra
    A few snippets of info that I found interesting:

    The court sided with the FTC in finding that the defendants failed to adequately disclose that consumers who purchased the systems would be enrolled in a $39.95/month subscription plan. Oh -- and customers' payment information was used without their express informed consent, in violation of the FTC Act and the Telemarketing Sales Rule.

    The FTC alleged that less than 1% of consumers who purchased the systems made a profit.

    There were "personal coaching services" were sold to consumers for as much as $14,995.
    In particular the:

    "customers' payment information was used without their express informed consent"

    That's what I would like to see enforced.
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  • Profile picture of the author GodMode52
    LOL man , your QI must be under 50 to buy something like this. Glad they got them.
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  • Profile picture of the author Fadiz
    oops
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  • Profile picture of the author Randall Magwood
    I had a feeling Jeff Paul's infomercial would be targeted.
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    • Profile picture of the author LegitIncomes
      I'd like to know exactly what was in the $14,995 coaching program.

      $14,995! That's CRAZY!



      Don't take what I say below the wrong way, I'm not defending the actions of these companies.
      But . . . I have a bit of a problem with this from the FTC:

      The FTC alleged that less than 1% of consumers who purchased the systems made a profit.
      We all know that most people who purchase programs never put them to use. The vast majority read, but do not take action. That's why I have a problem with them saying "less than 1%" made a profit...because I doubt even 5% actually took action and really tried to work the business.
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  • Profile picture of the author Thomas Michal
    Originally Posted by LegitIncomes View Post

    The FTC alleged that less than 1% of consumers who purchased the systems made a profit.
    Sounds to be on par with just about EVERY business venture in general. Is the FTC going to go after capitalism next.

    If they were really "scams" for real good for shutting them down. But if just because the majority didn't profit you can't solely blame the information.

    That would be like suing a college because you are unemployed after graduating.

    My $0.02
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    • Profile picture of the author LegitIncomes
      Originally Posted by Thomas Michal View Post

      Sounds to be on par with just about EVERY business venture in general. Is the FTC going to go after capitalism next.

      If they were really "scams" for real good for shutting them down. But if just because the majority didn't profit you can't solely blame the information.

      That would be like suing a college because you are unemployed after graduating.

      My $0.02
      Agreed. 100%.
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    • Profile picture of the author Joseph Robinson
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      Originally Posted by Thomas Michal View Post

      Sounds to be on par with just about EVERY business venture in general. Is the FTC going to go after capitalism next.

      If they were really "scams" for real good for shutting them down. But if just because the majority didn't profit you can't solely blame the information.

      That would be like suing a college because you are unemployed after graduating.

      My $0.02
      Not the same thing. These are products/programs that flat out said anyone can become a millionaire overnight, all you need is this system! That is not an attack on capitalism, it is an attack on people who make the rest of the industry look bad.
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    • Profile picture of the author Alexa Smith
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      Originally Posted by Thomas Michal View Post

      If they were really "scams" for real good for shutting them down.
      Agreed.

      Originally Posted by Thomas Michal View Post

      But if just because the majority didn't profit you can't solely blame the information.
      You can blame the people selling it, if they implied that the majority did make a profit, because that makes them liars.

      Originally Posted by Thomas Michal View Post

      That would be like suing a college because you are unemployed after graduating.
      No, it wouldn't.

      It would be like suing a college because you're unemployed after graduating when they'd specifically told you that you wouldn't be, while knowing themselves that that wasn't a typical outcome at all. Very different, I think you'll agree? One is your responsibility, while the other is clearly a specific and fraudulent misrepresentation, i.e. made by someone who knows it isn't actually true in order to part you from your money. You can see the difference, really, I think, Thomas? Not quite as simple an analogy as you're making out, is it?
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      • Profile picture of the author Thomas Michal
        No, it wouldn't.

        It would be like suing a college because you're unemployed after graduating when they'd specifically told you that you wouldn't be, while knowing themselves that that wasn't a typical outcome at all. Very different, I think you'll agree? One is your responsibility, while the other is clearly a specific and fraudulent misrepresentation, made by someone who knows it isn't actually true. You can see the difference, really, I think, Thomas? Not quite as simple an analogy as you're making out, is it?
        Touche. I stand corrected.
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  • Profile picture of the author RickCopy
    At the risk of embarassing myself lol...

    I actually bought John Beck's system back in the late 90's with a buddy when i was fresh out of highschool. The sales pitch worked on us. When we got the product we quickly realized that there was little to no value in it at all. Live and learn.
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    • Profile picture of the author Dan Allard
      Originally Posted by RickCopy View Post

      At the risk of embarassing myself lol...

      I actually bought John Beck's system back in the late 90's with a buddy when i was fresh out of highschool. The sales pitch worked on us. When we got the product we quickly realized that there was little to no value in it at all. Live and learn.
      Don't worry I bought John Beck's system too. Still have it lying around somewhere lol..
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  • Profile picture of the author Chris Worner
    How do these people even get airtime? Can't the networks that air these ads get punished?

    -Chris
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  • Profile picture of the author AceOfShirts
    Luckily I never bought into these, mainly because I never wanted to get into Real Estate. I almost bought the Jeff Paul course.

    Back in the day I did buy the Don Lapre "Make Money With Classifieds" and Brad Richdale's course. I never bought any of the upsells, and there were plenty of them. I did buy Richdale's Seminar Event (8 VHS) Collection. It was worth the $99 I paid for it.

    I'm surprised they haven't gone after the Stock Market people yet. I know they busted Wade Cook a couple of years ago, but there were plenty more. I actually like Cook's books and bought some of his used DVD courses on ebay. Good information and training, you just can't go around guaranteeing results.
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    • Profile picture of the author Kay King
      How do these people even get airtime? Can't the networks that air these ads get punished?
      They buy airtime like all advertisers.

      Expecting the networks to police this is like expecting mods to fully test WSOs before they run - oh wait, some people expect that, too.:p
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