According to the FTC, consumers paid fees ranging from $195 to $794 to become FutureNet distributors. However, the FTC charged that most of a distributor's promised income would come from the membership fees of new recruits and not from the sale of equipment or power service to non-members. The FTC also charged that at the time that FutureNet claimed to be able to sell power service, no state had deregulated electric power.
To settle the charges the defendants have agreed to:
You can get more information about the settlement and the original charges from the FTC press release.
If you are thinking about getting into an MLM, consider this: if the program relies on recruitment instead of product sales to non-members, it's really an illegal pyramid. And according to the FTC, 90% of people that get involved in pyramids lose their money. For tips on how to spot and avoid pyramids, check out our tips on online or telemarketed pyramid schemes. You should also read the FTC's brochure on pyramid schemes.
To ask a question or report an incident, call NCL's National Fraud Information Center at 1-800-876-7060 or use one of our online forms.
NOTE: This stipulated final judgment is for settlement purposes only and does not constitute an admission by the defendant of a law violation. Consent judgments have the force of law when signed by the judge.
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