Florida consumers will be paid over $1 million as part of a settlement between State Attorney General Bill McCollum and infomercial firm Whitney Information Network Inc.
Whitney and its subsidiaries, including Millionaire University and Whitney Intelligence Academy, promised in infomercials that customers could achieve financial independence by attending their seminars, McCollum’s office claimed.
The firms also used deceptive “testimonials,” the AG’s office continued.
As part of the deal, Whitney and its subsidiaries are barred from making misleading statements in their infomercials.
Whitney has already refunded more than $580,000 to victims, and must pay another $450,000, McCollum’s office said.
In addition, the firm must set up a reserve account of $150,000 to cover unresolved complaints. And it must pay $300,000 to the state — half to cover investigative costs and half to support the AG’s Seniors vs. Crime program.
According to McCollum’s office, elderly consumers signed up for Whitney’s classes based on the claim that they could earn without investing any of their own. Many were retired and on fixed incomes.
The AG’s office received over 250 complaints.
“When companies make direct or indirect implications that by using their products or services, a consumer can attain wealth and financial independence when that is not the experience of the typical consumer using the product, these actions could indicate potential violations of our consumer protection laws,” McCollum said in a statement.
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