The Tax Club Inc.
Also known as: Success Merchant Services, Corporate Tax Network, Corporate Credit, E-Tax Hotline 8882790191.
The FTC and the New York and Florida Attorneys General alleged that The Tax Club sold home-based business services through deceptive telemarketing, failed to provide promised services, and impeded refunds. Settlement orders followed.
Resolved. Refunded, settled, ceased operating, or the claim did not hold up. Kept for the record.
Identity
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- Registrations
- FTC v. The Tax Club Inc. (FTC case 122-3071, 2013)
- Jurisdictions
- United States (federal) · New York · Florida
Settlement and refunds followed allegations about home-based business services
The FTC and the New York and Florida Attorneys General alleged that The Tax Club called people trying to start home-based businesses and falsely claimed affiliation with companies that had already sold them products or services. The complaint said the operation sold tax preparation, business planning, coaching, corporate formation, and credit development services as essential to success. It alleged that the defendants often failed to provide the promised services and made refunds difficult to obtain.
According to the complaint, the defendants had taken more than $200 million from consumers across the country since 2008 alone. Services typically cost several thousand dollars, and buyers were repeatedly called with offers for additional services. The agencies also alleged misrepresentations about costs, earnings potential, and specialized assistance, along with violations of the Telemarketing Sales Rule.
Settlement orders entered in June 2014 banned the settling defendants from selling business coaching services and work-at-home opportunities and required asset surrenders valued at more than $15 million. The releases said judgments of $115 million and $140 million would be suspended upon specified asset surrenders and could become due if financial conditions had been misrepresented. In December 2016, the FTC said it was mailing more than 20,000 checks totaling more than $18 million, with an average refund of $914.
What is not established: The initial complaint was not a finding that the defendants violated the law. The supplied settlement release describes stipulated final orders but does not report an admission of wrongdoing.
Sources
Every claim above rests on one of these. Open them and check.
- Enforcement action January 17, 2013
- Enforcement action April 9, 2013
- Enforcement action June 24, 2014
- Enforcement action December 16, 2016
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First recorded January 17, 2013 · Last updated December 16, 2016