Kaufman & Forman, P.C.
Call to arrange a consultation
678-957-7769 | 770-390-9200
Contact Us
practice areas

Business litigation leads to substantial infomercial judgment

Federal authorities are claiming a substantial victory against several companies. The judgment handed down in the federal business litigation case, which was heard outside the state of Georgia, awarded the Federal Trade Commission $478 million against several companies that sold consumers get-rich-quick services. Authorities claimed in their suit that the companies used deception to sell their services.

The suit alleged that the companies sold consumers a system through TV infomercials for under $40 and then also offered consulting services that could cost as much as $14,995. Authorities also asserted that the company charged consumers a monthly fee without notifying them. This fee was alleged to be continuously charged unless consumers told them to cancel it, an act that authorities argued was deceptive.

The FTC notes the $478 million judgment received is the largest the agency has ever been awarded in litigation. Officials plan on using the monies obtained from the judgment to pay back nearly a million victims who suffered losses. The judgment also forbids some of the companies from ever entering into the infomercial and telemarketing industries ever again.

Charting a course through the many business laws of Georgia can be a difficult task. So can drafting enforceable contracts. In order to avoid costly business litigation, business owners may benefit from investigating what they can and cannot do when it comes to generating profits. This may set the stage for hardworking individuals to chart a course that allows them to develop a successful business while staying clear of the many issues that can arise if a business falls out of line with acceptable business practices set forth in state and federal law.

Source: The Telegraph, "WASHINGTON: FTC wins $478M judgment vs infomercial marketers," The Associated Press, Aug. 23, 2012

No Comments

Leave a comment
Comment Information

Contact Kaufman & Forman, P.C. Now

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

get Legal Help Now

Kaufman & Forman, P.C.
8215 Roswell Road
Building 800
Atlanta, GA 30350

Toll Free: 800-461-5864
Phone: 678-957-7769
Fax: 770-395-6720
Atlanta Law Office Map

Review Us

Robert Kaufman has been selected as a 2013 Top Rated Lawyer in ‘Commercial Litigation’ as will be published in the May issue of The American Lawyer & Corporate Counsel magazine.Alex Kaufman has been selected as a 2013 Top Rated Lawyer in ‘Commercial Litigation’ as will be published in the December issue of The American Lawyer & Corporate Counsel magazine.

*AV Preeminent and BV Distinguished are certification marks of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies. Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the bar and the judiciary. Martindale-Hubbell ratings fall into two categories: legal ability and general ethical standards.