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International Law

: Misleading Advertising Law

Easy Google Profit Scam

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One of my simple tests for fraud is this: when a website offering a business opportunity gets more attention than the FTC's site, the business opportunity is very likely a fraud.

This particular scheme, also known as "Google Easy Profit" uses a number of different websites:

miamigazettenews .com The Miami Gazette News.
nyguardian .com (New York Guardian)
theatlantatribune .com (The Atlanta Tribune)
detroittribunenews .com/homejobs (Detroit Tribune News)
detroittribunenews .com/myspace-jobs (Myspace Job Scam)
philadelphia-herald .com (Philadelphia Herald News)
fresh-off-the-press .com/featured/jobs-working-online-home-gold-rush/

to pitch a long news like description of something called "Google Easy Profit".

The FTC just shut down a similar scheme, relying only on Section 5 of the FTC Act, on July 1st, 2009.

The FTC brought an action against Google Money Tree, alleging that:

Google Money Tree, its principals, and related entities allegedly misrepresented that they were affiliated with Google and lured consumers into divulging their financial account information by advertising a low-cost kit that they said would enable consumers to earn $100,000 in six months.

They then failed to adequately disclose that the fee for the kit would trigger monthly charges of $72.21, the complaint states.

This case was filed in the U.S. District Court for the District of Nevada.

How similar is Easy Google Profit to Google Money Tree?

There are some similarities, and differences.

1. There is the same 7 day trial period, and if you don't opt out in time, you will be charged approximately $80.00 on ongoing monthly basis.

2. The ads which lead you to the website have unjustified earnings claims, $4800 a week for part time work on Alexa.

3. It is likely that the same abuse of the electronic payment system is going on because the company doesn't have a written pre-authorization for each monthly debit or charge.

4. The company states that it is not affiliated with Google, though why Google allows them to run these deceptive ads is beyond my comprehension.

5. There is the traditional disclaimer about earnings - earnings are not representative and the company suggests that you talk with a professional before purchasing their package.

There is no doubt that Easy Google Profit is a scam:

People have complained about noting being able to cancel the Easy Google Profit scheme.
On Google's own help page, there is a decent discussion about the scam.
Read the FTC complaint against Google Money Tree to see the similarities to the Easy Google Profit scheme.

From a legal perspective, the case against Google Money Tree is instructive. The FTC simply asserted under Section 5(a) of the FTC Act that Google Money tree had engaged in deceptive marketing practices: failing to disclose the material terms, that is the monthly fees; making deceptive earnings claims; and failing to disclose that they had no affiliation with Google.

My sense is that these allegations may be harder to prove against Easy Google Profit, and that the FTC may simply rely upon the Business Opportunity Rule, which requires that Easy Google Profit have a disclosure statement.

If this happens, all affiliate marketers who sell opportunities with earnings claims are going to have to be very careful and make sure that they have a disclosure statement and are complaint with all the US Business Opportunity laws.

Full post as published by Misleading Advertising Law on July 02, 2009 (boomark / email).

Lawsuits and Settlements

ASMP and Other Visual Artists File Class Action Lawsuit Against Google
Google Faces Class Action for Copyright Infringement

Rent Controlled Apartments
Landlord to pay $10 million settlement after forcing out low income tenants and then selling the buildings for a profit.

FDA
Warns of Extortion Scam by FDA Impersonators

Google Sued for Violating the Privacy Rights of Millions of Americans
Google Sued for Violating the Privacy Rights of Millions of Americans

FRS Healthy Energy
alleging the quercetin benefits from FRS energy products are a scam.

Medicare Fraud
Besler & Co. will pay $2.9 million to settle Medicare scam.

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