Illinois
From StoresOnlineExposed
[edit] ATTORNEY GENERAL MADIGAN SUES UTAH COMPANIES FOR MISLEADING CONSUMERS WITH FALSE PROMISES OF INTERNET BUSINESS SUCCESS
Chicago — ( December 18, 2006) Attorney General Lisa Madigan today filed a lawsuit in Madison County Circuit Court against two Utah businesses, StoresOnline, Inc. and Galaxy Mall, Inc., for misleading consumers with false promises to help them set up internet businesses.
StoresOnline and Galaxy Mall both promise to provide everything consumers need to get an online business started, including software to set up a web page, access to online payment mechanisms, and training courses to pull it all together. But, according to Madigan’s complaint, once consumers pay thousands of dollars for these services, the two businesses fail to fulfill their promises, leaving consumers with nothing.
Madigan’s complaint specifically alleges that StoresOnline and Galaxy Mall, both based in Orem, Utah, lure Illinois consumers to a free lunch, where they encourage consumers to attend a “training session” to learn how to start a successful online business. However, the “training session”, for which consumers pay a nominal fee, actually is a 6 to 8-hour sales presentation for the defendants’ products. During the “training session”, the defendants allegedly promise consumers:
- that the products are easy to use and consumers will not need computer experience;
- that the contracts for the products provide for a three-day period during which consumers can cancel the contract and obtain a refund; and
- that the defendants will provide any assistance the consumers may need to start their online businesses.
In contrast to the sales pitch, the complaint alleges that:
- the products are not easy to use, and even consumers with computer experience were not able to set up their online stores;
- the defendants refused to cancel contracts and provide refunds, even when consumers attempted to cancel within the first three days;
- the defendants failed to provide the promised technical support for the products
In terms of technical support, the complaint alleges that some consumers could not even reach the defendants to ask for assistance. When other consumers succeeded in contacting the defendants to request help, the complaint asserts that the defendants referred them to a consulting company which sought to charge an additional fee for technical assistance.
“Consumers need to be very skeptical of any marketing efforts that promise easy access to the world of internet business,” Madigan said. “If a sales pitch sounds too good to be true, it probably is. Consumers must be wary of unscrupulous businesses that prey on the desire to attain easy wealth through the internet.”
Madigan’s office received complaints against the defendants from consumers who live in Madison, Cook, Lake, Kane, Rock Island, Winnebago, Peoria, Sangamon, and Kankakee Counties. Based on these contacts with consumers, the complaint alleges that 15 Illinois consumers paid a total of over $91,000 to the defendants to set up online businesses, but none of the consumers succeeded in setting up an online business or in obtaining a refund from the defendants.
Madigan’s lawsuit alleges that the defendants violated the Illinois Consumer Fraud and Deceptive Business Practices Act. As a specific example of how the defendants’ scheme worked, the lawsuit alleges that one consumer, after being directly solicited by StoresOnline, attended a free StoresOnline lunch to learn how to start an internet business.
The complaint alleges that at the lunch, StoresOnline solicited the consumer to attend an all day “training session” in Collinsville, Illinois for a nominal fee. The “training session”, according to the complaint, turned out to be an 8-hour sales presentation consisting of testimonials about StoresOnline's services and products. The sales pitch for StoresOnline’s products allegedly included statements from StoresOnline about how simple the products are to use and that the consumer did not need to have any computer or business experience to be successful. During the sales presentation, StoresOnline allegedly assured the consumer that its staff would assist him in using the products to set up his business. According to the complaint, this consumer paid over $2600 for the products, but has never received the promised technical support and has not been able to get the StoresOnline products to work as expected.
Madigan’s lawsuit asks the court to prohibit the defendants from engaging in the sale or promotion of business products, training, and other services and from further violating Illinois’ consumer protections laws. The lawsuit seeks a civil penalty of $50,000 and additional penalties of $50,000 for each violation found to have been committed with intent to defraud. Finally, Madigan’s lawsuit asks the court to rescind the contracts and order the defendants to pay restitution to consumers and to pay all costs for the prosecution and investigation of this case.
Assistant Attorney General Jeffrey Feltman is handling the case for Madigan’s Consumer Fraud Bureau.
Office of the Attorney General
Lisa Madigan James R. Thompson Ctr., 100 W. Randolph St. Chicago, IL 60601 Phone: (312) 814-3000 http://illinoisattorneygeneral.gov/
Some Comments from Dissatisfied Illinois StoresOnline Customers
- Rockford: I purchased the Stores Online six-site package October 2005. I also purchased all the peripherals they were selling (i.e. Merchant account, Links4Trade, Auto Responder, Some tax thing that was a complete waste of money!). I published my first site www.HeavensWings.net in January 2006. I have sold very little. I cannot even get enough in sales to pay for my monthly fees! I have many times considered just dropping the whole thing because they refuse to give my money back ($6, 000 worth! [more]
- Hillside: If I had known all the EXTRAS you need to get and do, I would never have gotten involved. They make it sound so easy. All you do is pick a product and put it on your site and you are all set. NOT!!! They guarenteed me that I would have all 6 of my sites up and running in a year. They would be sure that I did all I needed to do. They would call weekly, (for an additional $6, 000.) So I did it. I didn't hear a word for months. I finally called them. [more]
- Ina: I was sold three licenses, "coaching, " and "guaranteed success, " even with little or no computer skills. I am very good with computers, and found their software relatively difficult to use, but more importantly, the end product website is nearly impossible to effectively optimize and market. The coaching was an absolute joke and a nearly total waste of time. [more]
- Hillside: If I had known then what I know now, I would never have signed on. They (Stores on Line) made it sound so easy. They didn't tell you all the extras you needed to do and get. When I bought my 6 web sites, I was guarenteed that I would have them all up and running in a year. NOT!!! I used their training pages and listened to their calls. I think I got more confused as I went on. [more]
- Peoria: I went to a seminar in Peoria, IL. I have been interested in making a living on the internet and had a small website prior to the seminar. With all the training they had that day they got my creative juices flowing however putting these plans into practice was not as easy I bought six websites. I brought two live. One is live today. This website is more of a hobby because there is no substantial income coming from it. After fees, advertising and cost of product I just about break even. [more]
- Chicago: I was very excited at first and willing to do what was necessary to get started. My wife and I attended the two initial Chicago seminars. We signed up and they eventually contacted me to attend their session in Salt Lake City, Utah. I learned a lot, but there are a few things they don't tell you. For example, drop-shipping requires that you use a pesonal credit card. All of the drop-shippers need you to register with them and many charge you a fee. [more]
- Chicago: Not generating enough traffic for the advertising costs and my time to pay off. Seems like there is too much out there already trying to do the same thing. Not a realistic expectation. [more]
- Itasca: I am somewhat computer savvy, however, I attended the StoresOnline seminar 2006 and purchased websites in the amount of $6, 000 with high expectations. My one site is partially up and I am paying hosting monthly fee with no results or benefits. When I was trying to get my site up and was using online help, they would not be available or they would cut off for some reason??? [more]
- Peoria: We went to the seminar in hopes of learning to make extra income. We understood that we would have to put time into this project to make money. Which we did. But we feel that we were mislead by Stores on line. We paid for the 6 websites, $7400.00. Then we paid another $2500.00 for coaching since we had no experience with web site building. Plus we have paid for web hosting and numerous other expenses. All of our websites have been up and running for at leat 1 year if not longer. [more]
- East St. Louis: I am not satisfied with Storesonline and their affiliated interbusinesses. I paid an extra $2, 000 to have someone help me set up my website and send out thousands of e-mails. I don't believe the e-mails were ever sent because I never had an influx of contacts, let alone orders. In fact, to date, I have yet to receive an order. [more]
[edit] Getting A Refund
Fill out the Complaint Form and mail it to
Office of the Attorney General, Carbondale Office 1001 E MAIN CARBONDALE , IL 62901
Note: This is a better address to use than the one on the form, since IMergent is already under active investigation.
