Promoters Defrauded Spanish-Speaking Computer Shoppers

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April 1, 2005
The Federal Trade Commission has accepted two separate settlements against companies that, the Commission alleged, deceived Spanish-speaking consumers responding to ads for low-cost computer systems.

The settlements are with California-based Unicyber Technology, Inc., and Florida-based Latin Shopping Network. In both cases, the FTC alleged that the defendants engaged in deceptive business practices that violated federal laws.

The Unicyber defendants’ ads attracted consumers with offers of guaranteed financing with no credit check. The Latin Shopping Network ads offered computers for cash.

The settlements prohibit the defendants from misrepresenting any fact material to a consumer’s decision to buy or accept computers or any other good or service. The Unicyber settlement requires the defendant to pay $100,000 in redress to consumers, to be added to the $400,000 already obtained from the corporate defendants. The Latin Shopping Network defendants must pay $45,000 in redress.

Unicyber Technology, Inc.

In March 2004, the FTC filed charges against Unicyber Technology, Inc., Unicyber Gilboard, Inc., Uri Technology, Inc., Uri Communications, Inc., and Chul K. Han, alleging that the defendants deceptively offered Spanish-speaking consumers a complete computer system for three payments of $199.

According to the Commission, the defendants delivered only keyboards and parts that would be useless without the computer itself, rather than delivering the entire computer at the time the first payment was made. Consumers then allegedly learned that they would not receive the full computer until they sent more money.

The complaint further states that those who made the payments ended up with computers that did not work properly, if at all.

Latin Shopping Network

The FTC filed a complaint and proposed stipulated final judgment and order against Crediamerica Group, Inc., doing business as Latin Shopping Network, America Communications Group, Inc., and their owner, Felipe Taveras.

These defendants also advertised computer systems to Hispanic consumers on national Spanish-language television. The defendants’ commercials promised consumers the opportunity to buy a complete computer system for between $500 and $1000. Consumers were told that the computer system would arrive within 15 to 30 days.

According to the FTC, many consumers never received their computers; many others received defective or incomplete products; others received neither computers nor refunds although they repeatedly contacted the defendants.

The FTC alleges that the defendants violated the FTC Act by misrepresenting that consumers would receive a complete computer system, or any computer equipment or other product or service, by paying the advertised purchase price, and misrepresenting any material aspect of the performance, efficacy, nature, price, or central characteristics of the product or service offered for sale.

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