November 20, 2001
An Internet operation that conned consumers into paying membership fees and turning over sensitive personal and financial information by deceptively claiming it would pay for their Internet access has agreed to settle Federal Trade Commission charges that the operation violated federal law. The settlement bars the defendants from making misrepresentations in the advertising, promotion, or sale of any products or services, bar them from collecting or disclosing personal information obtained by misrepresentations, and require that within 30 days, they delete or destroy the personal identifying information that they collected from consumers.
On May 23, 2001, the FTC filed suit in U.S. District Court naming as defendants New Millennium Concepts, Inc., doing business as rhinoPoint, and their principal, Karl V. Kay. Kay and the businesses are based in the Chicago suburb of Hoffman Estates.
On June 1, 2001, the Court entered a stipulated preliminary injunction order that prohibited misrepresentations, froze the defendants' assets, and barred the use of the consumer data, pending trial. The settlement announced today concludes that litigation.
The settlement bars the defendants from making misrepresentations in the advertising, promotion, or sale of any products or services.