Shopper Systems, LLC
The FTC alleged that Shopper Systems used false earnings claims to sell mystery shopping and webstore business opportunities, enrolled consumers in recurring charges, and continued billing some consumers after cancellation. Settlement orders imposed sales bans and required asset surrender.
Resolved. Refunded, settled, ceased operating, or the claim did not hold up. Kept for the record.
Identity
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- Registrations
- FTC v. Shopper Systems, LLC (FTC case 112-3176, 2012)
- Jurisdictions
- United States (federal)
Settlement orders ended the mystery shopping opportunity case
The FTC filed a complaint in October 2012 against Shopper Systems, LLC and related companies and individuals. According to the complaint, the defendants sold a business opportunity involving mystery shopping services for retailers and lists of merchants seeking shoppers. They allegedly claimed that buyers could earn an average of $50 per assignment with no limit on assignments.
The FTC alleged that buyers paid $2.95 for training and entered a seven-day trial that became a $49.95 monthly membership. Consumers were also lured into a webstore opportunity costing $3.95 for a 14-day trial and then $49.95 per month. The complaint alleged that consumers were often enrolled in the second program without realizing it. Some who canceled the mystery shopping membership continued to receive monthly charges and learned that they had to cancel both programs.
A federal court issued a temporary restraining order on October 31, 2012, halted the challenged practices, froze assets, and temporarily placed the companies into receivership. Settlement orders announced in 2014 banned Shopper Systems and related Moysich defendants from selling business or work-at-home opportunities, sending unauthorized text messages, and selling products or services with negative-option features. A judgment of more than $40.5 million would be suspended when the Moysich defendant group surrendered $55,000 in frozen assets.
What is not established
The 2012 release states that the complaint was not a finding that the defendants violated the law. The supplied releases report settlement orders but do not report an admission by Shopper Systems.
Sources
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- Enforcement action November 15, 2012
- Enforcement action February 19, 2014
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First recorded November 15, 2012 · Last updated February 19, 2014