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Consumer Updates

Kentucky-based Network Marketing Company to Refund $1.3 Million to Texas Customers

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November 16, 2011 | 2,329 views | Post a comment

Texas Attorney General resolves investigation of Fortune Hi-Tech Marketing, Inc.’s deceptive trade practices

HOUSTON -- A Lexington, Kentucky-based direct sales firm has agreed to repay up to $1.3 million to its Texas customers. The agreement resolves the Texas Attorney General’s investigation into potential Deceptive Trade Practices Act violations by Fortune Hi-Tech Marketing, Inc. -- including allegations that the firm operated an illegal pyramid scheme.

Qualified customers may obtain additional information about the settlement and submit a refund claim to the company by downloading a claim form from the Attorney General’s Consumer Protection Division at Claims must be submitted to Fortune Hi-Tech Marketing no later than Nov. 28, 2011.

In a typical illegal pyramid scheme, a purchaser or investor pays a fee for the opportunity to receive profits in the future. Those payments are primarily derived by inducing others to join the operation and pay a fee -- rather than from the sale of an actual product or service. Fortune High-Tech’s customers complained that the defendant falsely represented the earnings they would achieve if they became one of the defendant’s independent representatives.

Today’s settlement agreement prohibits Fortune Hi-Tech from engaging in deceptive trade practices in the future and requires the defendant to refund up to $299 to each qualified Texas customer, up to a total of $1.3 million.
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