35.  FTC v. GreenHorse Communications, Inc., Civil No. CV-98-245-M (D.N.H. filed May 4, 1998)

Defendants: GreenHorse Communications, Inc. and Lynn Haberstroh

Type:  Internet Business Scam & Franchise Rule

Defendants represented that investors who paid $14,000 to $15,000 could earn as much as $134,992 within their first year of operating an Internet Web site development business.  Defendants allegedly failed to provide prospective franchisees with the disclosure documents required by the Franchise Rule and failed to substantiate earnings claims.

On May 4, 1998, the Court approved a settlement which bars defendants from future violations of the Franchise Rule; requires them to offer refunds and contract cancellation to any investor in the business opportunity; and bars them from selling, renting or transferring their customer lists or information about their customers.