Sunday, July 5, 2009

Buyers Beware: Get-Rich-Quick Advertisements May be Scams

We have all seen the commercials on television, promising to give us the secret to riches for a few dollars. They seem too good to be true, but who could resist them in these economic times. As it turns out, some of the advertised items are nothing more than scams.

The government has just announced a joint operation by the Federal Trade Commission ("FTC"), the Department of Justice ("DOJ") and some state agencies, investigating companies that allegedly conned consumers out of millions of dollars through deceptive advertising and other illegal practices. The law enforcement action which has been named Operation Short Change, has targeted some widely advertised products.

Several of the investigation targets are California companies. For example, one investigation target is John Beck Amazing Profits, LLC, which apparently marketed "John Beck's Free and Clear Real Estate System". The product was sold for $39.95 and made promises about purchasers' earning potentials, but the promises were allegedly not truthful. Other targets include John Alexander, LLC and Family Products, LLC, both California limited liability companies, with addresses in Van Nuys, California.

For additional information, refer to the article, visit FTC web site, or search Google.

Robin Mashal is a partner at the law firm of Hong & Mashal, LLP, and can be reached at (310) 286-2000. His practice focuses on business law, real estate law and civil litigation. Hong & Mashal LLP is a California business law firm.

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