REI Industries, Inc. v. Texas

Should the sale of a product be enjoined for inflated sales figures and exaggerated claims of performance?

more+
less-

The Texas Court of Civil Appeals held that sales of the "phaser magnum" should be enjoined. REI Industries claimed that the product reduced air pollution in cars and offered a money back guarantee for the product, subject to several caveats. The product was sold through a network of distributers recruited at informational meetings. The promoters of the meetings claimed that distributors could make $1,000 a week using "conservative" estimates. The court found that the evidence produced at trial did not support either claim by the company and that they were false claims. The sale and distribution of the Phaser Magnum was thereby enjoined.

The case and case summary are also available at: http://www.mlmlegal.com/legal-cases/REIIndustriesInc_v_Texas.php

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

Written by:

Published In:

Reference Info:State, 5th Circuit, Texas | 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...
×