The US Federal Trade Commission (FTC) has charged four companies
with using the internet to defraud consumers out of around $175
million in an illegal pyramid selling scheme. The companies
promoted a work at home business. It charged consumers $125 for an
on-line educational package and the opportunity to profit by
re-selling the package to other consumers.
The FTC alleges that since late 1998, the four companies
violated federal laws by operating the pyramid scheme. They
allegedly made false statements about the potential for consumers
to make vast sums of money from the scheme and failed to mention
that investors in such schemes lose money.
The companies named in the FTC lawsuit are SkyBiz.com and
partner companies World Service Corporation, Nanci Corporation
International and WorldWide Service Corporation. The FTC asked a
district court judge to halt the unlawful operations of SkyBiz.com
in May. Its assets have also been frozen, to preserve them for
potential consumer redress.
The full hearing will commence on 26th June.
