FTC charged the company and its owner with making false and misleading claims about the earnings that could be realized, the availability of local, profitable payphone locations, and the inclusion of such locations as part of the business venture. FTC also charged them with failing to comply with the provisions of the Franchise Rule designed to help potential purchasers protect themselves from false profitability claims. Under the consent judgment, Ameritel Payphone Distributors and Goodman are barred from misrepresenting any fact material to a consumer's purchasing decision in connection with the sale of business opportunity ventures. The settlement, which required the court's approval, also bars defendants from misrepresenting that a purchaser would earn in excess of a specified amount, or would be provided profitable locations for the payphones. This stipulated judgment and order 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.
FTC Matter No. Civil Action No. 00-0514 Civ. All rights reserved. An order form can be found at this Site and can be printed out. If you wish to charge this to your Credit Card, click here now.