An online marketer who lured consumers into a bogus work-at-home scheme that charged them hidden fees by masquerading as a Google company has been shut down by the Federal Trade Commission.
Under a settlement agreement with the FTC, the defendants, which did business under names such as "Google Money Tree," "Google Pro," and "Google Treasure Chest," are barred from making misleading or unsupported claims while marketing or selling any product or service, and have been forced to surrender cash and other assets exceeding $3.5 million.
The defendants also are forbidden from marketing products via "negative option" transactions – a classic marketing scheme in which companies use fine print to trick victims into unwittingly agreeing to pay for a product or service for which they are billed on a regular basis until they cancel.
The FTC first took action against the defendants, Infusion Media, Inc., West Coast Internet Media, Inc., Two Warnings, LLC and Two Part Investments, LLC, in July 2009 as part of "Operation Short Change," an ongoing crackdown against scammers taking advantage of the recession to prey upon vulnerable consumers.
By using Google's household name and logo and falsely promising consumers could earn $100,000 in six months, the defendants lured consumers into providing their financial information to pay a small shipping fee for a work-at-home kit, according to the complaint.
What consumers didn't realize, thanks to the fine print, was that purchasing the useless work-at-home kit automatically triggered monthly charges of $72.21 for another product which continued until they took steps to cancel.
The complaint charged that the defendants violated the FTC Act by failing to adequately disclose that consumers would be subjected to monthly charges; by making false or unsupported claims that consumers were likely to earn substantial income; and by falsely claiming they were affiliated with Google Inc.
The defendants also violated the Electronic Fund Transfer Act and Regulation E by debiting consumers' bank accounts on a recurring basis without obtaining written authorization, the FTC charged.
The settlement includes a $29.5 million penalty against defendants Jonathan Eborn; Michael McLain Miller; Tony Norton; Infusion Media, Inc.; West Coast Internet Media, Inc.; Two Warnings, LLC; Two Part Investments, LLC; and Platinum Teleservices, Inc. A fourth defendant, Stephanie Burnside, is subject to a $741,900 fine.
The defendants have relinquished cash and other assets including two cars, a boat and a gun collection totaling approximately $3.5 million. The remaining $26 million has been suspended due to the defendants' inability to pay, but the full $29.5 million will be due if it's found the defendants lied about their finances.
Governor Pawlenty decides to screw Minnesota and work full time on wooing the Tea Party, while remaining governor:
Frustrated by what they see as stonewalling by Gov. Tim Pawlenty’s office over preparations for federal health reform, three of Minnesota’s most influential medical groups took matters into their own hands Thursday.
After Pawlenty declined to send Washington a letter with several state agencies’ recommendations for a key piece of the reform package, the medical groups got hold of a copy and sent it themselves.
They had to file a public records request to get the letter.
At the least, it’s a sign of growing frustration within Minnesota’s medical community with Gov. Tim Pawlenty. At most, it’s an open declaration of war. A trio of groups representing doctors, hospitals and health insurers on Thursday took the highly unusual step of circumventing Pawlenty to send a letter to U.S. Health and Human Services Secretary Kathleen Sebelius about how best to set up a state health insurance exchange under the federal health care overhaul.
What was so unusual about that? The letter was drafted by Pawlenty’s administration, but was never sent for reasons that aren’t clear but are the subject of speculation. Instead, the groups obtained it through a public data request.
He deliberately missed the deadline. Then neglected to tell them.
This summer, Pawlenty signed an executive order making Minnesota one of two states — Alaska was the other — to refuse money to study the cost of setting up the exchange. He has also forsworn other grants under the law, saying he was working to “keep Obamacare out of Minnesota.” The moves were widely seen as tinged with Pawlenty’s aspirations.
Palin actually quit her state job before becoming a full-time grifter.
Pawlenty has a better scam.
Remain governor, pick up the paycheck, retain the title, but simply refuse to do the job.
online reputation management
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