The Useful Settles With Florida Attorney General; or The Price of Leadership in Online Advertising: $1,000,000.00
In a press release eerily similar to that issued by Azoogle upon its settlement and million dollar payment to the Florida Attorney General, The Useful / World Avenue USA has announced that the Florida Office of Attorney General has closed its investigation into the company’s activities and will be dismissing its lawsuit.
“{Following a year long investigation into allegations regarding its advertising activities, the Office of the Attorney General of the State of Florida has closed the investigation and will be dismissing its lawsuit against World Avenue USA, LLC (formerly NiuTech), dba TheUseful and Niuniu Ji, the company’s chairman.”
The investigation and subsequent lawsuit stemmed from allegations regarding the company’s use of the word “free” in its online advertising. At issue was whether the terms and conditions for receiving “free” items were clearly and conspicuously disclosed. The heart of the issue was never litigated, and with the company agreeing to pay a million dollars, there is no admission of wrongdoing.
Apparently, the going rate for getting out of trouble in Florida is a million dollar donation to the Florida Legal Affairs’ Revolving Trust Fund. And much like the Azoogle settlement, in its settlement The Useful admitted no wrongdoing.
According to the press release from the company’s law firm:
“The company has taken a leadership position in working with the Attorney General to create standards and best practices for the online advertising industry. As part of these efforts, World Avenue USA, LLC will also make a $1 million contribution to The Department of Florida Legal Affairs’ Revolving Trust Fund to assist with future efforts in developing industry-wide standards and best practices.”
Apparently, “leadership positions” which allow companies to help “create standards and best practices for the online advertising industry” require that a company first get investigated and possibly sued by the Florida Attorney General, and then agree to pay a million dollars.
Looking back, according to Azoogle’s press release at the time of their settlement with the Florida AG, and referring to their million dollar contribution:
"This contribution reinforces AzoogleAds’ commitment to improving industry standards in the fight against fraudulent and deceptive internet advertising."
Clearly, there is a price to be paid for “leadership” in setting standards in, or improving the online advertising industry; $1,000,000.00. How many affiliates or networks can afford to lead that way? With $2,000,000.00 now sitting in the Florida OAG’s trust fund, and the Attorney General loaded with information based on “cooperation” from Azoogle and The Useful, it appears we’re going to find out in 2008. Stay tuned…
