Holiday Ink, a company selling ink cartridge display racks, has been targeted by the Federal Trade Commission (FTC) of the United States within the project FAL$E HOPE$ – a federal and state law enforcement sweep targeting bogus business opportunities and work-at-home scams.
The FTC charged that Holiday Ink sold ink cartridge display racks by misrepresenting that purchasers would earn a substantial income, misrepresenting the locations available for the racks, and using shills to reinforce those false claims. The FTC also charged that the defendants did not provide complete and accurate disclosure documents, did not provide an earnings claim disclosure, and did not have a reasonable basis for their earnings claims. Consumers invested a minimum of $7,950 for three racks, up to $55,950 for 20 racks, to take part in the business opportunity.
“Bogus business opportunities trample on Americans’ dreams of financial independence,” said FTC Chairman Deborah Platt Majoras. “If a business opportunity promises no risk, little effort, and big profits, it almost certainly is a scam. These scams offer only a money pit, where no matter how much time and money is invested, consumers never achieve the riches and financial freedom promised.”
The crackdown includes more than 100 law enforcement actions by the FTC, the Department of Justice, the United States Postal Inspection Service, and law enforcement agencies in 11 states. In four of the new FTC cases alone, consumers have lost more than $30 million.
“When the states and the federal government, civil and criminal enforcers, all work together – sharing information, partnering resources, and coordinating our efforts – we can make very significant progress against these unlawful businesses,” said Peter D. Keisler, Assistant Attorney General for the Justice Department’s Civil Division. He went on to describe 23 fraud convictions obtained in 2006, and the sentencing of 25 defendants to a total of over 160 years’ imprisonment for causing over $86 million in consumer loss.