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WBK Industry News - Litigation Developments

FTC and Utah Division of Consumer Protection File Complaint Against Real Estate Investment Seminar Company

The FTC and the Utah Division of Consumer Protection filed a complaint in the U.S. District Court for the District of Utah against a Utah-based real estate investment training company and its affiliates for allegedly using deceptive marketing to “sell multiple levels of increasingly expensive seminars, other trainings, and related products, purportedly designed to help consumers become successful real estate investors.”  The defendants allegedly violated several laws, including but not limited to, the FTC Act, the Telemarketing Sales Rule, and the Utah Consumer Sales Practices Act by using celebrity endorsers to market real estate training packages that included false claims.  The defendants allegedly marketed its training to promise consumers access to a proven system to help them become successful real estate investors, and enable consumers to find properties at deeply-discounted prices.  But, defendants allegedly provided nothing of value and used the opportunity to “entice consumers to purchase additional training and tools” and “sell consumers additional, more expensive products and services . . . typically for tens of thousands of dollars.”  The FTC and Utah Division of Consumer Protection seek, among other things, monetary and injunctive relief against the defendants.