Nine companies that advertise on the global computer network known as the Internet have been charged with making false and unproven claims, the government said.
Eight of the companies, including one from Utah, and their chief officers settled with the Federal Trade Commission and have agreed to halt the alleged deception. The ninth is contesting the case in federal district court in Chicago.The cases involve online ads for earning additional income, assistance for getting grants, computer equipment supplies and repairing bad credit histories.
Four of the companies were accused of making false credit repair claims. For fees ranging from $19.95 to $750, consumers were promised instructions or help removing negative listings from their credit histories, even if the information was accurate, the FTC said.
The defendants are Martha Clark of Simplex Services, Niverville, N.Y.; Bryan Coryat of Enterprising Solutions, Santa Barbara, Calif.; Lyle Larson of Momentum, Bellevue, Wash.; and Rick Rahim of NBDC Credit Resource Publishing, Springfield, Va.
Four companies were charged with making unsubstantiated claims about earnings for work-at-home businesses. The programs sold for between $9.95 and $147, but the advertisements offered no proof that consumers would earn up to "$4,000 or more each month" as they were told, the FTC said Thursday.
They are Timothy Bean of DCM Publishing Group, Laguna Hills, Calif,; Coryat; Robert Serviss of Excel Communications, Stamford, Conn.; and Sherman Smith of Starr Communications of Salt Lake City.
"The Internet opens a world of opportunities for consumers," said Jodie Bernstein, the FTC's director of consumer protection. "Unfortunately, it also presents opportunities for scam artists."
Another complaint involved marketing by Randolf Albertson and Wolverine Capital.