Last Update: Sept. 30, 2003
Commission Enforcement Actions Involving the Internet and Online Services
The Commission’s first “Internet” case
1.FTC v. Corzine
, CIV-S-94-1446 (E.D. Cal. filed Sept. 12, 1994)
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Defendant: Brian Corzine, a/k/a Brian Chase, d/b/a Chase Consulting.x(1)
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Defendant ran advertisements on America Online, offering a credit repair kit. He represented thatpurchasers of his credit repair kit could legally establish a new credit file. The credit repair kit sold for$99.
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On September 12, 1994, the FTC filed a complaint, charging defendant with misrepresentations inviolation of § 5 of the FTC Act. The Court entered an
ex parte
Temporary Restraining Order, includinga freeze of defendant’s assets. On November 21, 1994, the Court entered a Consent Decree, enjoiningdefendant against making misrepresentations concerning credit repair programs and requiring thepayment of $1,917 in consumer redress.
http://www.ftc.gov/opa/predawn/F95/chaseconsultin.htm (press release - complaint/TRO)
The Commission’s first online sweep: Chicago Regional Office’s casesCredit repair
2.Martha Clark
, Docket No. C-3667 (final consent June 10, 1996)
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Respondent: Martha Clark, d/b/a Simplex Services.x(2)
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Respondent maintained a site on the World Wide Web, offering a credit repair kit. The FTC allegedshe falsely represented that purchasers of her credit repair kit could remove accurate, non-obsoleteinformation from their credit reports. Her program sold for $39.
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On April 1, 1996, the FTC placed a proposed administrative consent order on the public record forcomment. The consent order became final on June 10, 1996. The order requires respondent to ceaseand desist from making misrepresentations concerning methods of removing adverse information from acredit report.
http://www.ftc.gov/opa/1996/9603/netsc.htm (press release - sweep)http://www.ftc.gov/opa/1996/9606/petapp37.htm (press release - final consent)
3.Brian Coryat
, Docket No. C-3666 (final consent June 10, 1996)
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Respondent: Brian Coryat, d/b/a Enterprising Solutions.x(3)
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Respondent maintained a site on the World Wide Web, offering a credit repair kit and a credit repairagency business opportunity. The FTC alleged he falsely represented that purchasers of his credit repairkit could remove accurate, non-obsolete information from their credit reports, and that purchasers of thebusiness opportunity could earn over $1000 a day. The credit repair kit sold for $24.95, and thebusiness opportunity for $49.95.
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On April 1, 1996, the FTC placed a proposed administrative consent order on the public record forcomment. The consent order became final on June 10, 1996. The order requires respondent to ceaseand desist from misrepresenting methods of removing adverse information from a credit report, andconcerning the earnings potential of business opportunities.
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