History
  • No items yet
midpage
Federal Trade Commission v. Arise Virtual Solutions Inc.
0:24-cv-61152
S.D. Fla.
Jul 8, 2024
Read the full case

Background

  • The Federal Trade Commission (FTC) filed a lawsuit against Arise Virtual Solutions, Inc., alleging deceptive and unfair practices in promoting and selling business opportunities, in violation of Section 5 of the FTC Act and the Business Opportunity Rule.
  • The complaint focused on misrepresentations by Arise regarding potential earnings and failure to provide consumers with mandated disclosures about the business opportunity, including earnings substantiation and material information.
  • The parties reached a stipulated settlement with Arise neither admitting nor denying the allegations, but agreeing to a permanent injunction and a monetary judgment.
  • Arise is permanently enjoined from making unsubstantiated earnings claims or misrepresentations, and required to provide specific disclosures and documentation concerning their business opportunities.
  • The judgment requires Arise to pay $7 million to the FTC, with funds intended for consumer redress, and to implement compliance and reporting measures for at least 10 years.
  • Notifications about the settlement must be provided to affected service partners and agents and publicized on Arise’s websites and communications.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Deceptive Earnings Claims Arise misled consumers about typical earnings Arise neither admits nor denies but settles Injunction against unsubstantiated claims
Failure to Provide Required Disclosures Arise did not provide mandatory business docs No admission; agrees to comply Must provide clear, timely disclosures
Misrepresentation of Material Facts Arise made false statements about terms/costs No admission; agrees to cease such conduct Permanently enjoined from misrepresentation
Monetary Relief and Settlement FTC entitled to monetary redress for consumers No specific argument; agrees to pay settlement amount $7 million judgment, payable to FTC

Key Cases Cited

  • No cases with official reporter citations are referenced in the opinion.
Read the full case

Case Details

Case Name: Federal Trade Commission v. Arise Virtual Solutions Inc.
Court Name: District Court, S.D. Florida
Date Published: Jul 8, 2024
Docket Number: 0:24-cv-61152
Court Abbreviation: S.D. Fla.