Great Expectations Fined $500,000
- Tuesday, February 24 2009 @ 01:04 pm
- Contributed by: Editor
- Views: 2,828
Back in June, 2008 we reported that the Arizona Attorney General filed a lawsuit against Great Expectations. Yesterday, Attorney General Terry Goddard announced that a $500,000 settlement was reached.
Great Expectations must pay $250,000 in restitution to eligible consumers who were victimized by the company's deceptive practises. The remaining $250,000 will be paid to the state for consumer fraud prevention.
Terms of the settlement also require Great Expectations to correct its alleged deceptive business practises. According to the lawsuit these included:
- Misrepresenting to consumers the overall number of Great Expectations' participating members.
- Misrepresenting to consumers that it had conducted a criminal background check on all of its members.
- Using membership agreements that illegally extended initial memberships beyond one year.
- Unlawfully obtaining consumers' credit information as soon as they arrived at the Great Expectations office.
- Using high-pressure sales tactics during one-on-one, hours-long presentations to consumers.
