NOTE: The following news brief appeared in an issue of the Reference Service, Advertising Compliance Service and examined an advertising law-related action during the month of August 1996.



 

FTC AGREEMENT: INTERNET PROMOTER BANNED FROM BUSINESS FOR LIFE

Advertisers that are not aware of the myriad laws, rules, regulations and administrative decisions affecting their advertising practices are playing a perilous game. A recent Federal Trade Commission (FTC) case illustrates just how perilous that can be--

An Internet promoter is out of the advance fee credit business forever, under an agreement he signed to settle FTC charges against him. FTC charged that he allegedly bolstered his promises of easy credit for consumers by claiming he had an "excellent record" with the "National Bureau of Consumer Affairs." FTC charged that the National Bureau of Consumer Affairs was one of the names under which the promoter conducted his South Carolina-based fraudulent credit services business. The settlement negotiated by FTC also requires the promoter to pay $3,500 in consumer redress, bars him from violating the Telemarketing Sales Rules' provisions against deceptive or abusive telemarketing practices, and imposes a broad ban on material misrepresentations in connection with any product or service he sells in the future.

FTC's complaint alleged that the promoter advertised VISA cards and loans with "no credit check" on the Internet and in many publications, including Income Opportunities and the National Enquirer, and charged an advance fee of $49. What consumers actually got for their money was a list of companies offering loans (for which consumers had to qualify), along with various self-help credit-related materials, said the agency.

NOTE: This consent judgment is for settlement purposes only and does not constitute an admission by the defendant of a law violation. Consent judgments have the force of law when signed by the judge.

(National Bureau of Consumer Affairs et al., FTC File No. X96 0070, Civil Action No. 2 96 1675 18, August 13, 1996; materials relating to this FTC matter are available on the Internet at FTC's World Wide Web site at: http://www.ftc.gov.)

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