A federal judge recently held that Zaken Corp of Thousand Oaks, California and its President Tiran Zaken made false and misleading statements in marketing work-at-home business opportunities and promising commissions to consumers, the Justice Department announced in its press release.
According to the Dept’s press release, “the court found that 110,000 consumers had bought the defendants’ program and “more than 99.8 percent never earned any commission whatsoever.”
The Zaken Corp. and Tiran Zaken lured customers with claims that purchasers could expect that “two to four hours a week working this business will earn participants an average of $3,000 to $6,000.”
They further claimed that “the average commission checks associates get … will be approximately $4,280!”
In the court’s written decision, Judge Pregerson of the Central District of California found that “fewer than one percent of consumers ever earned any income at all.”
The Court held that Zaken Corp violated the Federal Trade Commission Act by making false claims regarding the earnings potential of QuikSell.
The court also found that The Zaken Corp. and Tiran Zaken violated the Federal Trade Commission (FTC)’s Business Opportunity Rule, which requires sellers of business opportunities to provide specific, truthful information to help consumers evaluate a business opportunity prior to purchase.
Under Michigan law, this business Could have been prosecuted under the Michigan Consumer Protection Act, which protects consumers from these types of “business opportunities.”
Questions? Comments?
email: Jeshua@dwlawpc.com
Purpose Driven General Counsel 