World Avenue Will Pay $800K To Settle With Texas AG

Greg Abbott headshotOnline lead-generation company World Avenue USA has agreed to pay $800,000 to settle allegations by the Texas Attorney General Greg Abbott that the company tricked people into making purchases with phony offers of "free" merchandise.

This agreement marks the second time this year that World Avenue has settled with law enforcement authorities for allegedly luring consumers with deceptive offers of free iPods and other goods. In January, the Florida Attorney General's office extracted $1 million from World Avenue in a similar settlement.

World Avenue, headquartered in Sunrise, Fla., did not admit wrongdoing as part of either deal. President Dale Baker said Thursday the company is not facing any other investigations.

The Texas settlement grew out of a probe that began in 2006, according to a spokesman for the Texas Attorney General's office. As with the Florida agreement, the Texas settlement calls on World Avenue to clearly inform consumers that they might have to participate in a survey, complete an application or make a purchase to qualify for the merchandise.

The authorities in Texas alleged that the company sent e-mails and ran display ads offering free products, but that in most cases people had to either make a purchase or take some other action before they were eligible.

World Avenue has 90 days to bring its promotional sites in compliance with the settlement, but Baker said it already has revamped most of its sites. The company uses banner ads and e-mail direct traffic to sites like MyChoiceRewards.com and ProductOpinionPanel.com, which offer "free" Gucci bags and iPods in exchange for participating in various surveys, applications or other offers.

"In most of our cases, you can go ahead and get a gift without making a purchase," Baker said. For instance, he said, in some cases people who want to receive a free iPod might have to complete six actions, such as applying for a credit card or requesting information about a mortgage. After finishing the tasks, people will be able to claim the gift, but might still have to pay shipping and handling charges, which Baker pegged at between $4 and $6.

Next story loading loading..