15 {{ upvoteCount | shortNum }}
15 {{ upvoteCount | shortNum }}

Warning to Affiliates - Sued by FTC - Paid $390,000

by rushindo
12 replies
The Federal Trade Commission recently charged an Ohio company and its owner with fraudulently claiming on 17 Web sites that consumers could quickly get out of debt if they used several debt-settlement companies to which they referred people. The company’s owner agreed to a $390,000 settlement.

This guy probably was an affiliate who drove traffic to his 17 websites to promote a debt settlement company.

Take away: Be careful on how you "pre-sell" your affiliate offers.

Source: Debt settlement is rarely a done deal - Washington Post

Brandon
#$390 #affiliates #ftc #paid #sued #warning
  • Profile picture of the author datingworld
    Poor owner....
    something went wrong somewhere? ....No in this case ......everything went wrong everywhere
    Signature

    Free Private Label Dating Guide Book _ _ _ _ _ The Best Dating Affiliate Program
    {{ DiscussionBoard.errors[8078439].message }}
  • Profile picture of the author drewfioravanti
    The article doesn't even begin to explain what the Ohio company did. What we do know is that they had $390,000 to cover the settlement costs.
    {{ DiscussionBoard.errors[8078459].message }}
  • Profile picture of the author mak3r
    Wow 390000$ that's crazy
    Though article is rather old indeed
    {{ DiscussionBoard.errors[8078502].message }}
  • Profile picture of the author MarvyDery
    thanks for the warning. I can't imagine this happening to me
    Signature
    Xcitement Hub | Ghana Info | Tech Tips
    {{ DiscussionBoard.errors[8078513].message }}
  • Profile picture of the author kindsvater
    Here is the FTC story:

    Promoters of Phony Debt Reduction Schemes Settle FTC Charges

    Basically, don't commit fraud to get CPA offer leads. He was paid $24.60 per lead, and to get those leads he over reached and made false claims about the debt reduction services offered by the merchant.

    I see a lot of IM affiliates engaged in similar fraud - overstating the benefits of some program to try and get a commission or lead generation payment.

    Every time the door bell rings they must have a near heart attack wondering if their life is about to crumble.

    Not only did he pay $390,000, but this was in addition to other civil and criminal penalties he may face.

    He is also effectively out of business - permanently. I am a little surprised to see this, but for the next 20 years he has to give a copy of the judgment to anyone he does business with, including any employee, for any business. He can't even open a janitorial service without giving everyone the FTC judgment.

    .
    Signature
    {{ DiscussionBoard.errors[8078516].message }}
  • Profile picture of the author roblawrence
    Scary stuff. The rules are always changing online. Wait until the new tax laws pass.
    {{ DiscussionBoard.errors[8078882].message }}
  • Profile picture of the author rmolina88
    Whoah.

    Guess I'm staying out of the debt settlement niche.
    {{ DiscussionBoard.errors[8078885].message }}
  • Profile picture of the author Kenster
    Affiliates ARE liable for their marketing and sales and even have some liability on the ultimate offer they are promoting.

    Welcome to business!
    {{ DiscussionBoard.errors[8079079].message }}
  • Profile picture of the author writeaway
    The logic and reasoning behind this decision actually can extend to many common IM practices involving income claims. This is the reason I no longer take solo ads with income claims formatted in the same spammy way as typical email ads. Instead, I insist on a standardized informative format. Less hype. Less legal hassles.
    Signature
    {{ DiscussionBoard.errors[8079094].message }}
  • Profile picture of the author JohnDBrewer
    @roblawrence - I was a tax professional during this last tax season and I have to say that 99% of the US does not have a clue as to what is going to happen next year. If you don't have health insurance or Medicaid by the end of 2013, you are looking at a big tax penalty that actually increases each year. Some of the penalties can be as low as $97 (for a single person) and as high as $2000....just for the first year. The 2nd year, it triples almost. It is so scary to think about what our government does without disclosure. We are the ones that voted this mess into office.

    I guess I should get off of that soapbox.

    Be a good person and don't overstate what your product can do.

    Have a great one everyone.

    John Brewer
    Signature
    {{ DiscussionBoard.errors[8079148].message }}
    • Profile picture of the author Black Hat Cat
      Banned
      Originally Posted by JohnDBrewer View Post

      We are the ones that voted this mess into office.

      John Brewer
      Speak for yourself.
      {{ DiscussionBoard.errors[8080180].message }}

Trending Topics