Infomercials Claims Land Colorado Company in Court
However the Federal Trade Commission and the Colorado Attorney General seem to take infomercials claims quite seriously. They recently joined in filing a suit in Denver U.S. District Court against the Dalbey Education Institute (formerly America’s Note Network), which is based in Westminster, Colorado. Their concern was with the company’s 2002 to 2010 infomercial entitled “Winning in the Cash Flow Business” that aired across the United States and Canada. The spot featured an “Emmy award Winning Host”, Gary Collins.
The company’s pitch is that by buying various CDs, DVDs and booklets ranging from $39.95 to $159, one can learn how to locate and broker promissory notes, which will quickly earn you significant amounts of money without much effort. The complaint however, alleges that the company’s infomercials are deceptive and misleading.
The FTC brought their complaint under the Federal Trade Commission Act and the Telemarketing and Consumer Fraud and Abuse Prevention Act to secure relief, restitution, and the “disgorgement of ill-gotten monies” for deceptive practices. The State of Colorado brought their action under the Colorado Consumer Protection Act for similar reasons.
The lawsuit contends that DEI and its principals engaged in deceptive trade practices through an organized network of companies and knowingly made false representations, as very few consumers ever earned money after purchasing the advertised materials or broke into the promissory note business.
The Telemarketing Sales Rule prohibits telemarketers and sellers from misrepresenting “[a]ny material aspects of the performance, efficacy, nature, or central characteristics of goods or services that are the subject of a sales offer” and from “[m]aking a false or misleading statement to induce any person to pay for goods or services.”
The complaint asks the Court for relief by entering permanent injunctions against Defendants to prevent future violations, award relief to consumers as is deemed appropriate, and for reimbursement of court costs.
Denying the allegations, DEI views this as an attack on a respected local company and intends on fighting the lawsuit.