StoresOnline to Repay California Victims of Internet Marketing Scheme

In the latest of a growing list of settlements stemming from lawsuits filed by state Attorneys General, Orem, Utah based StoresOnline has agreed to repay California customers who have filed complaints against the company. This isn't the first time StoresOnline has had legal issues with the state of California. A previous case was settled in 2006; however, the company has since violated that agreement and in 2007 a new action was opened by the California Attorney General's Office. Because of the tenacious work of California Attorney General Edmund G. Brown, Jr, California customers of Imergent, Inc. and StoresOnline can now recoup some of their losses.

StoresOnline, a subsidiary of Imergent, Inc provides ecommerce solutions to entrepreneurs and markets their training, software, and other applications via seminars that often take place in hotels and other venues. While the initial seminar is free, complete with a free lunch and often, free gifts, the company then upsells its attendees to attend further workshops where the average purchase is more than $5,000.

Customers purchase websites, software, and training, hoping to make it big as Internet marketers, when, often, they have no previous experience or computer skills. "These companies falsely promised customers that they could get rich by selling merchandise over the Internet," Attorney General Brown said in a press release dated March 16, 2009. "In reality, many customers were left in deep debt, paying high up-front costs, and never earning a dime from their websites. This agreement allows these customers to get back some of their losses."

California customers of StoresOnline who have complained to the Attorney General's Office, the Ventura County District Attorney, or directly to StoresOnline are entitled to a refund. In addition, customers have 90 days in which they can still recoup their losses by filing complaints.

Going forward, StoresOnline will be monitored when they hold seminars in the state of California. According to the agreement, StoresOnline must provide the California Attorney General's Office with recordings of sales presentations and must also notify the Attorney General and Ventura county District Attorney's Office when sales presentations occur in California so that they may be monitored.

This action is likely because Imergent and StoresOnline, which has a Better Business Bureau rating of F, has a reputation for making tantalizing statements that lure customers into believing they can strike it rich on the Internet after investing thousands of dollars with the ecommerce company. However, nine states have brought action against the company over the last few years, accusing them of things such as misleading consumers (Illinois), making exaggerated and deceptive claims (Connecticut), using fictitious business names to do business (Wisconsin), making misleading statements about the ease at which customers could secure first page positions on major Internet search engines (Oregon), and many other serious infractions. Aside from the states already mentioned, North Carolina, Florida, Indiana, and Utah have all brought action against the company, some of which is still pending.

With all the negative publicity surrounding Imergent and StoresOnline, the business continues to thrive, even as more consumers become aware of their business practices. In the seven years since Chris Hansen, of Dateline NBC first conducted an interview with then President Jay Poelman, who was president when the company was known as Galaxy Mall, hundreds of complaints have been lodged by consumers who have lost thousands and thousands of dollars. Still, according to the latest SEC report filed by StoresOnline, response to their advertising efforts increased in the first two quarters of fiscal year 2009 compared to the same two quarters in the previous year. Not only that, but sales were up as well.

According to the 2002 Dateline report, customers were told they didn't have to have a computer, a business, or even a product to get started with the company. However, as part of the 2008 Wisconsin settlement, StoresOnline must caution customers against attempting to establish an Internet business if they lack basic computer skills or a viable business to market online.

Attorneys General and consumer protection groups across the United States are cautioning consumers to be vigilant about opportunities to work from home making money on the Internet. Although it is possible to earn a living from Internet marketing, it is a business that requires hard work, dedication, and time, much like any other business.

California victims of StoresOnline who have not yet registered a complaint may do so online or call the Public Inquiry Unit of the California Attorney General's Office at 1-800-952-5225.

Sources

Review of StoresOnline, Inc in Orem, Utah, Better Business Bureau

http://www.bbb.org/utah/business-reviews/training-programs/storesonline-inc-in-orem-ut-2000585

News and Alerts - California Dept. of Justice - Office of the Attorney General

http://ag.ca.gov/newsalerts/release.php?id=1701

United States Securities and Exchange Commission EDGAR Filing

http://www.sec.gov/Archives/edgar/data/1075736/000111650209000130/imer10q.htm#_Toc221168636

Mary Bair, NBC Dateline Exposes Galaxy Mall Mary Bair