Information Regarding CBSI The Federal Trade Commission (FTC) has issued a complaint against Computer Business Services, Inc. (CBSI) and several of its officers and employees. In a record-setting financial settlement filed along with the complaint, the respondents agreed to pay $5 million in redress to settle FTC charges that the firm's ad claims about potential earnings and profits were false and misleading. In addition to the financial settlement, the respondents are barred in the future from misrepresenting the success rates or profitability of CBSI's clients and from using deceptive testimonials or other deceptive statements to entice consumers to buy CBSI's products and would be required to disclose that federal laws restrict the use of certain automatic telephone dialing systems it sells. The Commission has received public comment about whether to accept the order against CBSI and its officers and employees, and has decided to accept the order and make it final. A separate proposed complaint and proposed settlement agreement were accepted by the FTC as to one of the founders of CBSI, Jeanette L. Douglass. The charges against Mrs. Douglass are virtually identical to those in the complaint against CBSI. The settlement agreement is also nearly identical to the settlement agreement against CBSI except that it proposes no additional monetary relief against Mrs. Douglass. After receiving public comment, the Commission has decided to make the order final against her as well.
Rev. Tuesday, April 01, 2003 17:44 -0500 - geh |