This case was one of nearly 100 that have been filed nationwide by the FTC, the U.S. Justice Department, and business opportunity regulators in 20 state securities divisions and attorneys general offices. The complaint against Lewis and Quartercall alleged that they failed to provide a complete and accurate basic disclosure document containing all the information required by the Franchise Rule at least 10 days prior to purchase, and that they failed to give purchasers an earnings claim document containing substantiation for the earnings claims they made. The proposed consent order to settle the charges would require Lewis and Quartercall to fully comply with the provisions of the Franchise Rule, and would prohibit them from making unsubstantiated earnings claims or misrepresenting any other material aspects of a franchise or business opportunity. The Commission vote to authorize filing was 5- 0. This consent order is for settlement purposes only and does not constitute an admission by the defendant of a law violation.
Consent orders have the force of law when signed by the judge.