FTC v. SkyBiz.com, Inc., 01-5166 (10th Cir. 2003), (non-precedential)

FTC v. SkyBiz.com, Inc.

more+
less-

In May 2001, the FTC filed suit in U.S. District Court in Tulsa, Oklahoma charging that Tulsa-based SkyBiz and its principals promoted a pyramid scheme with false earnings claims. After a hearing, the district court entered an injunction against Skybiz from continuing business, froze the assets of Skybiz and its related companies and owners, and ordered funds overseas to be repatriated to the U.S. Skybiz offered an opportunity selling personalized Web site businesses to consumers for $125. Skybiz attempted to avoid a pyramid selling scheme finding by offering to each new customer a set of Web site creation tools. However, the district court found that the “product” was of little value, and that many of the sites were never used by participants and were only purchased to gain access to the chain of commission payments generated from recruitment. On appeal, the 10th Circuit Court of Appeals upheld the injunction.

Full case and summary are available at: http://www.mlmlegal.com/legal-cases/FTC_v_SkybizcomInc.php

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

Reference Info:Federal, Federal Circuit | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Babener & Associates | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

CONNECT

Welcome to MLM Legal - a valuable resource to the Multi-Level Marketing and Direct Sales Industry. ... View Profile »


Follow Babener & Associates:

Reporters on Deadline

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×