FTC Licks Envelope-Stuffing Pitchmen

November 18, 2004

Envelope Stuffing Scams • Consumers Don't Make Thousands Stuffing Envelopes • Illinois Sues Envelope-Stuffing Promoter • Deceptive Spam Operation Shut Down • Court Halts Envelope-Stuffing Marketers • FTC Licks Envelope-Stuffing Pitchmen • Feds Snuff Stuffing Scam --- • Scam Alerts

Under the terms of a court order announced by the Federal Trade Commission, a set of defendants with mail drops in Willowbrook, Illinois are permanently barred from selling work-at-home business opportunities, and will pay $420,000 in consumer redress in connection with allegedly deceptive pitches made to consumers between 2001 and 2003.

According to the Commission’s complaint, in promoting their program to consumers, the defendants violated the FTC Act through a variety of misrepresentations, including claims that consumers could earn between $500 and $5,000 per week stuffing envelopes at home, “guaranteed.”

Consumers typically paid between $55 and $150 for the defendants’ business-opportunity information, with almost none receiving return of the registration fee, let alone earning the income promised in the defendants’ ads.

The stipulated final order announced today settles the FTC’s civil case against:
1) Financial Resources Unlimited, Inc.;
2) Supreme Mailing Services, Inc.; and
3) Mark E. Shelton, individually and as an officer of the corporate defendants.

The defendants did business as L. Lewis & Associates and A. Joseph & Associates.

According to the FTC’s complaint, since at least 2001, the defendants sold envelope-stuffing business opportunities throughout the United States, claiming that consumers could make “$500 WEEKLY” by mailing sales brochures from home.

Calling their plan a “Genuine opportunity,” the defendants claimed that no experience was necessary and that they would provide consumers who called the toll-free number in their classified ads all the supplies they needed to earn “guaranteed paychecks.”

Consumers who responded to the defendants’ ads were connected to a recorded message that instructed them to leave their name and address. According to the FTC, consumers then received a form letter stating that they could earn “$550.00 to $3,000 AND MORE WEEKLY!,” based on $10 for each circular they mailed.

The defendants’ program was organized into five different “groups,” each promising a higher level of income, ranging from $550 per week in Group #1 to $5,000 weekly in Group #5, with sign-up fees ranging from $55 for Group #1, to $150 (originally $300) for Group #4. Group #5 was “only for home workers who started under income Group #4" and “received their 5th $3,000 paycheck.”

The defendants allegedly identified Group #4 as the “BEST DEAL!” and provided consumers with examples of how much money they could earn at each level. The FTC alleged that consumers did not make the money promised and that the defendants did not pay $10 per envelope for all or many of the envelopes stuffed and mailed by consumers. The FTC also alleged that the defendants did not pay the cost of postage as they promised consumers.

The final judgment and order bans the defendants from promoting work-at-home business opportunities, prohibits them from making misrepresentations in connection with the advertising and sale of any goods or services, and bars them from providing anyone else with the means of engaging in the deceptive conduct alleged in the complaint.

In addition, the order requires the defendants to pay $420,000 for use as consumer redress, with an avalanche clause that requires the payment of $6.5 million – the estimate of total consumer harm – if the defendants are found to have misrepresented their financial condition. Finally, the order prohibits the defendants from distributing their mailing lists and contains terms related to monitoring and compliance to ensure that they meet the terms of the order.

Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

Share		Follow us on Twitter.

Back to the top |

Terms of Use Your use of this site constitutes acceptance of the Terms of Use

Advertisements on this site are placed and controlled by outside advertising networks. ConsumerAffairs.com does not evaluate or endorse the products and services advertised. See the FAQ for more information.

Company Response Welcome If complaints about your company appear on our site, we welcome your response. Please see the Response Form for more information.

For more information, see the FAQ and privacy policy. The information on this Web site is general in nature and is not intended as a substitute for competent legal advice.  ConsumerAffairs.com Inc. makes no representation as to the accuracy of the information herein provided and assumes no liability for any damages or loss arising from the use thereof. 

Copyright © 2003-2009 ConsumerAffairs.com Inc.  All Rights Reserved.    The contents of this site may not be republished, reprinted, rewritten or recirculated without written permission.