FTC Targets 'Work At Home' Spam

The Federal Trade Commission yesterday announced it has sued a Florida company under the Can-Spam law as part of a “Project Biz Opp Flop” initiative targeting purveyors of get-rich-quick scams.

In the lawsuit, filed in federal district court in Florida on Feb. 8, the FTC claims that Sun Ray Trading Inc. of Sunrise, Fla., along with SR & Associates, Inc. of Weston, Fla., Rolando Galvez and Anneelises Flores--alleged officers of the companies--and Kostadin Marte Tavarez, violated the federal anti-spam law by sending “numerous” unsolicited e-mails with misleading subject lines. The FTC is seeking an injunction against the companies and damages of at least $1.4 million.

On Feb. 11, a Florida judge issued a temporary restraining order and froze the assets of the companies and the individual defendants. That order was extended until March 1, after a court hearing last Friday afternoon.

Only one defendant, Tavarez, appeared with an attorney last week; his lawyer, Jason Wandner of Miami declined to comment to OnlineMediaDaily.

Another defendant, Flores, hadn’t yet been served with the complaint. Defendant Galvez was in court, but without an attorney or translator; because he doesn’t speak English, the case against him was adjourned until March 1.

In its complaint, the FTC alleged that misleading subject lines in the e-mails included such statements as: “Earn $550 or More Stuffing Envelopes!” and “Where will we send the paychecks.”

The e-mails themselves allegedly contained links to Web sites that promised visitors $10 per envelope for mailing advertising circulars. But, according to the complaint, consumers had to purchase the letters, envelopes, and mailing labels from the company for $10 each, and had to pay a registration fee of between $65 and $160.

The complaint stated that, after sending Sun Ray their money, consumers learned for the first time that they were sending out circulars soliciting recipients to do the same envelope-stuffing envelope as themselves. In addition, consumers also discovered they would be paid $10 per envelope only when recipients took the company up on the offer and purchased the envelope-stuffing materials.

“Few, if any, consumers receive even a single paycheck from Defendants for the envelopes that they process and mail,” alleged the FTC.

Several other “Opp Flop” lawsuits announced yesterday also had Internet components. For example, in one case filed in California federal district court, the FTC charged that a Nevada corporation doing business in California, World Traders Association--along with other companies and their alleged owners--solicited consumers to become affiliates of Musketeer Partners, which sold surplus goods on the Web. None of the defendants could be reached for comment.

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