41.  United States v. PVI, Inc., Civ. No. 98-6935 (S.D. Fla., filed Sept. 1, 1998)

Defendant: PVI, Inc., d/b/a Photo Vend International

Type:  Internet Business Scam & Frachise Rule

PVI sold business opportunities involving digital photo sticker vending machines. PVI solicited investors via e-mail, telephone presentations and written promotional materials and allegedly violated the Franchise Rule by: (1) failing to provide prospective buyers with timely, accurate and complete disclosure documents as required by the Franchise Rule; and (2) making earnings representations without providing prospective buyers with the required earnings claim document.

The Department of Justice filed a complaint on behalf of the FTC on Sept. 1, 1998. On September 10, 1999, the court approved a stipulated final order filed by the parties. The order required the defendant to pay a civil penalty of $11,000 and prohibited the company from future violations of the Franchise Rule and from making any false or misleading statement or representation of material fact, including representations relating to the income, profit, or sales volume of a franchise.

http://www.ftc.gov/opa/1998/9809/vendup2.htm (press release - complaint)