The complaint also alleged that the defendants failed to provide prospective purchasers with a basic disclosure document that included the names, addresses and telephone numbers of prior purchasers, as required by the Rule to help potential purchasers protect themselves from false profitability claims. The settlement does not require payment of any funds, but contain provisions that would allow the FTC to reopen the case if the defendants misrepresented their financial status. Finally, the proposed settlement contains various recordkeeping and reporting requirements designed to assist the FTC in monitoring the defendants' compliance. The Commission vote authorizing staff to file the settlement was 5-0. This stipulated judgment and order is for settlement purposes only and does not constitute an admission by the defendants of a law violation.
Consent judgments have the force of law when signed by the judge.
The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. The FTC enters Internet, telemarketing, identity theft and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.