Company Selling Phony Luxury Goods Banned from Telemarketing in FTC Settlement
A marketing company that targeted Spanish-speaking women has been banned from telemarketing as part of settlement with the Federal Trade Commission (FTC).
Oro Marketing, operated by Cream Group Inc., targeted Spanish-speaking women with false promises that they could make money reselling brand-name goods, which turned out to be generic, off-brand products.
According to the complaint, the company charged consumers between $400 and $490 for products from luxury brands like Gucci and Ralph Lauren. The company then shipped shoddy, generic products instead. Consumers who refused to pay were threatened with arrest, phony lawsuits, referrals to immigration authorities and other intimidating statements.
The settlement also imposes a $5.17 million judgment against the company and its owner Sami Charchian, which will be partially suspended after they have turned over all of their assets to the FTC. A second order imposes a $375,000 judgment against defendant John Charchian.