Annual minutes filing, patent marketing schemes settle cases

Posted at 6:19 PM, May 10, 2018
and last updated 2018-05-10 22:11:02-04

New developments in cases involving two businesses accused of deceiving consumers.

The Federal Trade Commission (FTC) announced a $25 million settlement against World Patent Marketing on Thursday. 

The claimed to be able to help inventors to patent their product, but in its lawsuit, the FTC says the company did not deliver on that claim.

Valley resident Kim Dalhover says he paid the company more than $13,000 to develop, patent and market his invention.

But says, in the end, he only received a booklet in the mail.

Unfortunately, victims likely won't get much of the settlement because owner Scott Cooper told investigators he's already spent most of it on the payroll, credit cards, and personal purchases.

The FTC says Cooper claims to only have $1 million left and will surrender that to the agency.

In another case we've been following, consumers will get full refunds the Arizona Attorney General announced on Thursday.

Compliance Filings Service sent 129,000 government look-a-like mailers requesting $150 from businesses to fulfill a bogus annual minutes requirement, according to the AG. 

Calling the company deceptive, the AG says it will have to pay $88,650 in total restitution to the businesses that responded.

If you're thinking about starting a business, there are some really important steps you need to take to prepare.

We talked with the Arizona Small Business Association about where to start on the Let Joe Know Facebook page.