FTC Hammers Invention Promoters With $10M Settlement
The owners of an invention promotion operation that charged up to $12,000 to evaluate and promote consumers’ inventions agreed today to pay $10 million in consumer redress to settle Federal Trade Commission charges that they deceived consumers across the country.
The defendants — Davison Design and Development and Manufacturer’s Support Services — enticed consumers with false claims about their selectivity in choosing products to promote, their track record in turning inventions into profitable products, and their relationships with manufacturers. They also deceptively claimed that their income came from sharing royalties with inventors, rather than from the fees consumers paid, the FTC said.
The settlement - which came after an 11 year court battle — also bans the defendants from misrepresenting that they’ve helped inventions become products without disclosing whether consumers have profited from the product, and that they have a vast network of corporations with which they regularly negotiate licensing agreements.
The FTC, which brought five of the cases, said the defendants in its actions generated in excess of $90 million for their own pockets by exploiting the ideas, hopes and dreams of tens of thousands of consumers.
Editor’s Note: The reason I post this is in case some of our viewers have used this company, in which case they might want to get a lawyer.
And secondly, it took 11 years to get this settelement??? That’s outrageous!
I wonder how much of the $10 million will actually be returned to the people whose dreams were dashed? Do the math and you’ll see the invention promotion operation is still $80 million ahead. Inventors beware!
Check out this Forbes article called Inside Inventionland.
Photo by Davison.
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