The Federal Trade Commission has just won a court judgment against the marketers of three get-rich-quick systems who they say deceived nearly a million people. The FTC is asking for $450 million back.
The court found that despite infomercials promising easy profits, nearly all consumers who bought the following lost money:
- “John Beck’s Free & Clear Real Estate System”
- “John Alexander’s Real Estate Riches in 14 Days” and
- “Jeff Paul’s Shortcuts to Internet Millions.”
In fact, according to the FTC, the court found that “less than one percent of consumers who purchased the systems made any profit whatsoever.”
BBB Patterns Echoed by Court Findings
John Beck Amazing Profits LLC, the company responsible for the John Beck infomercial, has earned an F rating at www.bbb.org. The BBB asked this company to substantiate its advertising in 2007, but was not satisfied with its response. The court found that this company falsely represented that consumers could purchase homes at tax sales for pennies on the dollar and that they could make money easily with little financial investment.
John Alexander LLC, the company responsible for the John Alexander infomercial, also has earned an F rating with the BBB and has a pattern of advertising issues dating back to 2007. The court found that the earnings claims in the John Alexander infomercial were false.
The BBB’s information indicates that Jeff Paul’s Shortcuts to Internet Millions may be part of John Alexander, LLC. The court found that the Jeff Paul infomercial misled consumers by creating an overall impression that “a typical consumer can easily, quickly, and ‘magically’ earn thousands of dollars per week simply by purchasing and using” the system.
The court found John Beck Amazing Profits LLC, John Alexander LLC, Jeff Paul LLC, Family Products LLC, and Mentoring of America LLC liable for the misrepresentations in infomercials and by telemarketers for the systems.
To learn more about the government action, visit the FTC press release.