North America Marketing and Associates, LLC

Also known as: NAMAA LLC, TM Multimedia Marketing LLC, National Opportunities LLC, World Wide Marketing and Associates LLC, Wide World of Marketing LLC.

The FTC alleged that this operation sold websites for $100 to $400 on a promise of commissions from Fortune 500 retailers, then upsold advertising packages costing $5,000 to $20,000 that generated no significant sales.

Resolved. Refunded, settled, ceased operating, or the claim did not hold up. Kept for the record.

The cheap sale was the lead for the expensive one

For $100 to $400, the defendants promised to build and host a website that would earn its owner commissions when shoppers clicked through to buy from “Fortune 500” retailers such as Wal-Mart, Best Buy and Starbucks. Buyers were also promised free, full-time marketing expertise.

What arrived instead of the free help was a follow-up sales pitch. The defendants sold an advertising package typically costing $5,000 to $20,000, claiming it would generate $3,000 to $20,000 per month in sales depending on the size bought.

According to the FTC, those packages did not generate any significant sales commissions. Some buyers who complained were sold thousands of dollars in additional advertising services.

The rebrand

When consumer complaints mounted, the defendants shut down operations and renewed the same business opportunity under new business names. The complaint names eleven corporate entities, including two pairs registered in both Nevada and Arizona under the same name.

They were charged under the FTC Act and the Telemarketing Sales Rule for misrepresenting that buyers would earn substantial income and that experts would help them run the business.

The settlements

Seven settlements resolved charges against 20 corporate and individual defendants, who are permanently banned from selling work-at-home business opportunities, from misrepresenting any product or service, from violating the Telemarketing Sales Rule, from collecting money from customers, and from selling or benefiting from customer information.

The orders impose a suspended $17.9 million judgment against each defendant except Sarah Stapel, who faces $78,070. Suspension depends on the corporate defendants surrendering frozen funds and on payments of $77,500 by Joseph Lowry, $28,000 by Sheila Lowry, $14,450 by Vigil, $9,400 by Tramel and $1,896 by Birdsong.

What is not established

Consent judgments resolve allegations without any admission or finding of wrongdoing.

Sources

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