IMergent Inc. and StoresOnline Inc. have paid $50,000 to settle a lawsuit from the Wisconsin Attorney General over allegedly deceptive marketing practices, according to AG J.B. Van Hollen
As part of the settlement, the companies denied any wrongdoing.
The firms market their products and services through workshops and seminars.
According to the lawsuit, StoresOnline’s solicitations have violated Wisconsin law by failing to identify StoresOnline as the entity offering the products and services, instead using fictitious business names.
They further violated state law by failing to disclose that the purpose of the workshops was to sell Internet-related software and services, according to the AG.
Under Wisconsin’s law regulating direct marketing and mail solicitations, entities are required to disclose the name of the principal seller, identify that they are offering for sale a good or a service, and identify the nature of the goods or services for sale. The law also prohibits the use of fictitious names which can confuse or mislead the seller’s true identity, continued the AG.
Under the terms of the settlement, the companies must pay the state $50,000 in forfeitures, penalty assessments, and investigative costs, according to Van Hollen.
They must also disclose in its solicitations the identity of the seller, the purpose of the solicitations, and the nature of the goods and services being offered, continued the AG.
In addition, the companies must provide a notice cautioning prospective purchasers that they should not attempt to establish a web-based business if they lack basic computer skills or a viable business to market on the Internet, according to the AG. The settlement was approved by the Dane County Circuit Court.
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