Affiliate Strategies, Inc.
The FTC alleged that a government-grant operation falsely promised consumers guaranteed $25,000 grants and upsold grant services with a claimed 70 percent success rate. A court entered a default judgment against Affiliate Strategies.
Resolved. Refunded, settled, ceased operating, or the claim did not hold up. Kept for the record.
Identity
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- Registrations
- FTC v. Affiliate Strategies, Inc. (FTC case 5:09-cv-04104-JAR, 2009)
- Jurisdictions
- United States (federal)
Default judgment followed grant-marketing allegations
The FTC and state attorneys general filed a July 2009 complaint against Grant Writers Institute and related entities and individuals. The complaint alleged that the operation falsely told financially distressed consumers they were guaranteed, or highly likely, to receive federal grants.
According to the FTC, the operation mailed postcards saying consumers were entitled to a guaranteed $25,000 in government grant money. Callers were offered a $59 book titled Professional Grant Writer ‘The Definitive Guide to Grant Writing Success.’ Consumers who bought the book were then called and asked to pay hundreds of dollars or more for grant research, writing, or coaching services. The complaint alleged that the defendants falsely claimed a 70 percent success rate in securing grants for individuals.
In late July 2011, the court entered default judgments against six corporate defendants, including Affiliate Strategies, Inc. Those corporations were banned from marketing money-making opportunities and from telemarketing. The orders also prohibited sales misrepresentations and required substantiation and disclosure of fees, costs, and cancellation or refund terms.
The court imposed a $27.2 million judgment against Affiliate Strategies and four other default defendants to pay consumer refunds. The FTC release states that those companies had no assets.
Sources
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- Enforcement action August 25, 2011
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First recorded August 25, 2011 · Last updated August 25, 2011