149

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FTC Action Summaries

Visions Group

149. U.S. v. Visions Group of America, et al, (WDNY filed October 18, 2000)

Defendants: Visions Group of America, Inc., SOHO Technologies, Inc., and their principals, Mark Colosi, Rex Judd and Greg Kazimer

Type: Cooling Off Rule

The FTC alleged that defendants used high-pressure sales tactics to sell various home-based business opportunities based on false and unsubstantiated earnings claims and that defendants violated the FTC's Cooling-Off Rule, which gives consumers three days to cancel certain purchases of $25 or more. The defendants sold various business opportunities including: "Inside Trader," a business that allegedly allowed purchasers to buy brand name merchandise at or below wholesale cost; "Net More Worth" and "Vision Net," businesses that allegedly allowed purchasers to sell classified ads on the Internet for a profit.

The Commission vote to forward the complaint and consent order to the Department of Justice for filing was 4 to 1. They were filed by DOJ at the request of the FTC, in the U.S. District Court for the Western District of New York, on October 18.

The settlement, which is subject to court approval, would prohibit the defendants from making deceptive income, profit, or sales volume claims in connection with the sale of any franchise, business opportunity, or investment. Also, it prohibits the defendants from violating the Cooling-Off Rule, which includes providing various cancellation notices to prospective purchasers, and would require them to pay a $22,000 civil penalty.

http://www.ftc.gov/opa/2000/10/visions.htm (press release - complaint and consent order)

This page was last modified on July 22, 2007.

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