The FTC alleged that Imall made was a franchise system and failed to properly meet federal franchise disclosure requirements. Purchasers would buy into a system that allows them the right to resell advertising space within Imall to local merchants. The FTC also claimed that Imall's promotional materials misrepresented the potential profit that could be realized from the program. The FTC pointed to promotional cassettes and flyers that featured Imall participants claiming to have made upwards of $30,000 in a single month, when, according to the FTC, few if any participants had come close to making as much money as Imall represented.
The full case and summary are also available at: http://www.mlmlegal.com/legal-cases/FTC_v_ImallInc1998.php
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