Federal Trade Commission v. Arise Virtual Solutions Inc.
0:24-cv-61152
S.D. Fla.Jul 8, 2024Background
- 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.
