68.  iMall, File No. 972-3224 (stipulated final judgement approved Apr. 15, 1999)

Respondents: iMall, Carl R. Pickering, and Mark R. Commer

Type:  Deceptive Internet Mall Promotions

The Commission alleged that, between July 1995 and August 1998, iMall used direct mail, radio ads, television informercials, a promotional cassette, and telemarketing calls to promote free seminars where consumers would hear about two Internet-related business opportunity programs.  The iMall Opportunity Program offered investors the opportunity to become "consultants" and make money selling Web pages on the iMall site. The Internet Yellow Pages (IYP) program offered investors the opportunity to make money selling advertising space on the IYP Web site contained within the iMall site. The Commission alleged that, at these seminars, the respondents made false earnings claims for their Internet-based businesses and that they violated the Franchise Rule.

On April 15, 1999, the Commission announced a $4 million settlement with the respondents.  The Stipulated Final Judgment and Order barred Craig R. Pickering and Mark R. Comer for life from selling any Internet or pay-per-call business opportunity; barred them for 10 years from selling franchises; required a $500,000 bond before selling certain types of business opportunities; and barred future violations the Franchise Rule. iMall was permanently barred from violating the Franchise Rule and from misrepresenting material facts about any business opportunity it promotes. The Order called for iMall to pay $750,000 and Pickering and Comer to pay $3.25 million in consumer redress.