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"These companies falsely promised customers that they could get rich by selling merchandise over the Internet," Attorney General Brown said. "In reality, many customers were left in deep debt, paying high up-front costs, and never earning a dime from their Web sites. This agreement allows these customers to get back some of their losses."
These two companies sell Web site-based "stores," in packages of three or six Web sites, at a cost of between $2,700 and $6,000. They market their products at seminars, which they advertise through postcards and other mailings often sent to senior citizens with limited Internet experience. They often offer seminar attendees a meal and a free gift such as an MP3 player.
The companies made statements such as:
"Are you ready to claim YOUR share of eBay's annual $3.2 Billion in revenue? By attending our FREE 90-minute ‘eBay Entrepreneur Training' Conference you will learn how eBay PowerSellers run successful Internet businesses and how an elite few use additional strategies to boost revenues way beyond the average seller. Learn how nearly half-a-million people create full-time incomes using eBay!"
At the seminars, the companies make tantalizing claims regarding the massive profits that can be earned by consumers who purchase their product. Often, however, these profits are never realized and the customer is left in serious debt.
One victim used the inheritance left by her father to purchase six Web sites, in hopes that they would help supplement her income after retirement. The victim spent over $10,000 in set up costs. Of the six Web sites the victim bought, only one has been set up, and it continues to cost more than it brings in.
In August of 2006, the California Attorney General's Office and the Ventura County District Attorney settled a previous case against Imergent Inc. and Stores On Line. That settlement barred the defendants from engaging in conduct that violated California's laws governing seller assisted marketing plans.
The Attorney General's Office continued to monitor the companies' business practices and discovered that they were violating the 2006 agreement and were continuing to sell seller assisted marketing plans without registering with the state.
A new action was brought in 2007 to enforce the prior judgment, and to seek penalties, restitution, and an injunction. Today's agreement resolves the 2007 action.
The companies have agreed to the following terms:
Pay $147,600 for full restitution to California consumers who have complained to the Attorney General's Office, the Ventura County District Attorney, or directly with StoresOnLine.
Pay $202,400 for restitution to California consumers who submit complaints within 90 days.
Cancel all outstanding financing contracts for consumers who have complained.
StoresOnLine will also send a letter to all California purchasers who have bought since January 1, 2008, offering them a 15-day period within which to cancel the transaction and receive a refund.
Register with the state as a seller of seller assisted marketing plans.
Provide a 15-day right to cancel for purchasers over the age of 65.
Disclose clearly the circumstances under which StoreOnLine will charge consumers a Web site hosting fee, and provide consumers the opportunity to opt out of hosting Web sites with Imergent, Inc. and Stores On Line.
Provide the Attorney General's Office with recordings of sales presentations and notify the Attorney General and Ventura County District Attorney's Office when sales presentations take place in California, so they can be monitored.
These types of schemes are promoted on TV infomercials, on the Internet, by direct mail, at trade shows, at invitation-only seminars, and through ads that may appear in the classified sections of newspapers or magazines. The ads promise big earnings, and promise that no selling or other experience is necessary.
If you believe you are a victim and have not yet made a complaint to the Attorney General's Office, you may be entitled to restitution if you submit a complaint within 90 days.
To submit a complaint with the Attorney General's Office, please file a complaint online at www.ag.ca.gov/general.php or call the Public Inquiry Unit at 1-800-952-5225.
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UPPER LAKE – The second in a series of informal business-to-business gatherings to exchange ideas on dealing with the market downturn was a success, and the entire series is anticipated to be valuable for all participants.
At the second “Thursday Evenings with the Schmids,” held on March 19, economic historian and market analyst Hal Bryan, who will share his wisdom and advice throughout the series, cautioned business owners to avoid premature expansion at the first sign of a turnaround, as he saw the probability of several false market bottoms before real recovery could occur, based upon his study of previous bubbles.
He indicated there would be profit opportunities for those businesses which were innovative and flexible in what he sees as an increasingly inflationary environment.
Event hosts Peter, Maryann and Rita Schmid of The Lodge at Blue Lakes, and manager Sylvia DeSantis, wish to thank all who attended the second “Thursday Evening with the Schmids” on March 19, and for their enthusiastic validation of the concept of the business-to-business networking series.
Guest speaker Sandra West, owner of the Edgewater Resort and facilitator of Mount Konocti Facilitation, gave a very informative talk entitled, “Market your existing customers to create new customers.”
Debra Sommerfield, deputy administrative officer for the county of Lake's Economic Development Department, also attended.
Barbara and Larry Juchert of Mendo Lake Interiors and Journeys provided complimentary appetizers. Ronald and Martha Benway of Harbor House Espresso Bar furnished the coffee. Michelle Price of Tulip Hill Winery and Jason Schrider of Mendocino Brewing Co. poured liquid refreshments, with background music provided by guitarist Jason Argos.
The third event in the series will be held on Thursday, April 2, from 5:30 p.m. to 8 p.m., with Bryan proposing a model survival plan for small businesses which will be developed with the participation of Lake and Mendocino business owners and community leaders during this series of "Thursday Evenings with the Schmids."
The April 2 event will feature Bryan and guest speaker Marcia de Chadenèdes, outreach and partnership coordinator for the North Coast Geotourism Project, who will speak about a new project to produce a National Geographic Society branded map and a Geotourism Map Guide Web site for the North Coast area of California, which includes Lake and Mendocino counties.
On April 2, Steele Winery and Mendocino Brewing Co. will provide wine and beer; Jerry Thompson manager of Pro-Flame Gas will furnish the appetizers and entertainment will be provided by Steve Winkle.
The series will continue on the first and third Thursday evenings of the month in March, April and May to provide a forum for businesses to showcase their products and services, make local connections, and discuss ways of coping during this economic downtown.
Due to the success of the two gatherings and to preserve the intimate and relaxed fireside ambiance, the Schmids feel obliged to limit the number of guests, so it is essential to RSVP for the upcoming get-togethers.
To inquire about future speakers and to RSVP, please contact Sylvia DeSantis at 275-2181.
The Lodge at Blue Lakes is located at 5135 W. Highway 20, Upper Lake. Visit the lodge online at www.thelodgeatbluelakes.com.
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The seminar is designed to help anyone with an interest in organic production learn more about the benefits of sustainable agriculture and understand how to complete the paperwork required for organic certification.
The training will be held from 1 p.m. to 4:30 p.m. on Saturday, March 28, at CCOF-certified Ancient Lake Gardens, 8993 Soda Bay Road, Kelseyville.
The OSP 101 training take individuals through the process of developing an OSP, the first step towards organic certification.
Information, including tips on record keeping, monitoring inputs and descriptions of site practices and procedures will be presented.
Experienced trainers will also provide information on the economic and environmental benefits of organic agriculture as well as discuss how to overcome systematic and technical barriers to organic conversion.
All the materials needed to complete an OSP will be provided.
The training session is sponsored by Harmony Farm Supply. All trainings are free of charge and open to all.
For more information contact Lars Crail, telephone 279-4949 or email
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The subcommittee advises the Fertilizer Inspection Advisory Board on all matters related to the Fertilizer Research and Education Program.
The program funds and coordinates research and education to advance environmentally safe use and handling of fertilizing materials.
Applicants for the position should have a scientific and technical expertise in a broad representation of fields, including: fertilizing materials, agronomy, plant physiology, laboratory and field experimental research, organic and conventional agriculture practices, and environmental systems.
The term of office for a subcommittee member is three years. Members receive no compensation but are entitled to payment of necessary travel expenses in accordance with the rules of the Department of Personnel Administration.
Individuals interested in being considered for appointment should send a brief resume to Dr. Asif Maan by March 30 to the California Department of Food and Agriculture; Feed, Fertilizer, Livestock Drugs and Egg Regulatory Services; 1220 ‘N’ Street, Sacramento, CA 95814 or
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