 | | | Author: | | SurprisedReader (---.ipt.aol.com) | | | Date: | | 29.10.07 | |
Posted: April 21, 2004 at 9:43 p.m.
BAY AREA (KRON) -- Making easy money on the internet is a tempting offer. That's why thousands are accepting invitations to free seminars put on by a company called "Stores Online." But Contact 4's Joe Ducey says the so-called "seminar" is nothing but a sales pitch for an expensive product you probably don't want.
These seminars are going on in the Bay Area right now by a company called "Imergent." It's a new name for a company that's sold the same old thing under the name Stores Online and we're seeing similar complaints.
The lure of being an internet entrepreneur recently drew hundreds of Bay Area residents to a free lunch seminar. We were there with a hidden camera.
"Hopefully you've come to tap into the fastest most explosive growth industry ever," says one representative of Stores Online.
Stores Online offers to make you rich quick by helping you set up and manage multiple e-commerce websites. "We can provide the right tools, the right training," says a representative.
But to find out more, you have to sign up for a second seminar. Dozens did, so did we and expected to hear more about how to set up an online store. But apparently that's not on the agenda.
Don't worry if you don't know what to sell. One representative says, "Some of you came here with no idea, no product, no service, no info. That's okay."
Plus, it's expensive: $2,500 just for starters, as much as $10,000 for a complete package. And you have to buy now.
Is it worth it?
Not according to hundreds of complaining customers. "It's basically smoke and mirrors," says Robin Hogen-Esch.
Robin's out-of-work husband fell for it. He had spent $4,900 for programming and maintenance services, typically sold elsewhere for less than $50. But when he tried to cancel, he couldn't.
Contact 4 has learned stores online, also known as Galaxy Mall and most recently Imergent, has an unsatisfactory record at the Better Business Bureau with 280 complaints. At least 5-states have taken legal action.
San Mateo County's Assistant District Attorney Chuck Finney got an injunction this month, forcing the company to offer a very important three day cancellation right. Finney says consumers really need to take advantage of that window of opportunity.
"Don't all of a sudden take a a deep breath and just relax. Don't get laid back. Make sure what you have received really substantiates what you have been told in the seminar," advises Finney.
The pitchman at our seminar promised us impressive websites with realtime credit card processing capabilities. "If it's easy, they'll buy, if it's not, they won't," he says.
But all you're really buying is software to build it yourself. And a lot of consumers complain it doesn't even work.
We're also promised 24-7 tech support. "Remember we're there to help, we're not just going, 'Thanks for coming, don't let the door hit you in the rear,'" says a representative.
But again, hundreds say you pay extra for help. "You are going to spend $5,000 to $20,000 thousand dollars," says one customer
"Often, people who can least afford it buy into it. And I'm not saying 100%, no one makes money, but its awfully close," says the Better Business Bureau's Pat Wallace.
The company says customer service is free but admits one-on-one help is going to cost you. As for the software, the company's lawyer told us some people aren't going to be able to use it, but the majority of clients use it successfully.
Stores Online offered to give Robin her money back, with a condition: that her husband would agree not to take further action.
But she wouldn't go for it. "It's hush money. It will blow off and they will start doing it again. Its got to stop," says Robin.
Robin has since got her contract voided. She joined San Mateo County's complaint and this week received notice of reimbursement.
Others who want their money back should file a complaint before May 7th. Call the San Mateo County District Attorney's hotline at 650-363-4651 or email Chuck Finney directly at cfinney@co.sanmateo.ca.us
(Copyright 2004, KRON 4. All rights reserved.)
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