Facts

In Deep Services Inc., doing business as Grant$ For You Now, operated a website asking for consumers' credit or debit account information to process a $1.99 fee for government grant information to pay personal expenses or debt, and debited bank accounts without approval.

PLAINTIFF'S CONTENTIONS:
The Federal Trade Commission alleged that In Deep Services deceptively advertised free government grants despite the fact that the federal government does not provide such grants for personal expenses or debt payment. The FTC further contended that the business failed to disclose to consumers that they would be charged monthly and falsely offered 100 percent no hassle money back guarantee.

Damages

The FTC initially sought consumer redress equal to the entire amount of the company's sales.

Result

The parties reached a settlement for $9 million. The $9 million settlement is suspended as long as defendants have not misrepresented their financial condition. Instead, they owe approximately $500,000, but this amount is also not due to the FTC as long as the funds are used to pay defendants' current and back taxes. Defendants are allowed to continue to market products over the Internet.

Other Information

FILING DATE: June 23, 2009.