In June, we told you about the lawsuit filed against Colorado’s Dalbey Education Institute whose infomercial “Winning in the Cash Flow Business”, hosted by Gary Collins, was under fire for being deceptive and misleading.
Last week, the Attorney General and Federal Trade Commission were successful
in obtaining a stipulated order barring the company from airing misleading
statements during their infomercial.
The order specifically prohibits Dalbey from implying that consumers are
likely to quickly earn substantial sums of money through brokering promissory
notes, and additionally addresses the handling of sales calls and record
keeping, compliance monitoring and the prohibition of disclosing consumer lists.
Further, an advertising disclosure stating that “Most of our customers
will earn little or no money” is to be prominently displayed several
times throughout the infomercial, the frequency of which depending on
the length of the particular infomercial.
Will these new regulations really deter consumers from buying into a powerful
infomercial in hopes of a quick rich scheme? All one has to do is look
at lottery sales for that answer. The odds may be small, but it’s
the hope of being “the one” to hit it big that keeps the cash
flowing. So, who really is the one “Winning in the Cash Flow Business”?
Any consumer who believes that they may have been scammed may file a complaint
with the Colorado Attorney General through their website.
If you would like to read the full order, you may access it here.