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On July 12, 2010, the District Attorney of the County of Contra Costa, Robert J. Kochly, filed a lawsuit against Motivational Ventures in Marketing, Inc., Infinity Group Marketing, LLC, Gina M. Stagnitto and Does 1 through 10 inclusive. The District Attorney's office alleges that Motivational Ventures in Marketing, Inc., is a California corporation which has an office in Contra Costa County and does and has done business under various fictitious business names, including MVM, Inc., Discover Enterprise, Road to Wealth, Underground Management Co., Readers Source, Silk Enterprises, Financial Education of America, Magazine Home Entertainment, and R. Tate Financial Recovery Services. The lawsuit charges the business contracted with various telemarketing sales organizations and offered membership programs for magazine, CD, and other subscriptions for monthly payments.
The suit alleges that these sales calls are considered home solicitation contracts and are in violation of California Civil Code 1689.7 because they are not in writing and consumers are not provided with a written notice of cancellation.
Further charges state the sales representatives do not clearly and truthfully disclose relevant and material information, including the identity of the seller, the purpose of the call, the nature and full purchase price of the goods and services, and the numerous conditions attached to the gifts offered as an inducement to purchase.
The lawsuit seeks to force Motivational Ventures in Marketing, Inc. to make restitution to customers by refunding money and honoring requests to cancel, to cease all false advertising, and to stop soliciting consumers until they comply with the CA Civil Code.
In the final judgment and permanent injunction filed by the Contra District Attorney's office on January 21, 2011, Motivational Ventures in Marketing, Inc. Infinity Group Marketing, LLC, and Gina M Stagnitto have been ordered to provide a complete refund to all customers, who have, within the four years preceding the filing of the Preliminary Injunction in this case, who have submitted a complaint to BBB, the California Attorney General or any District Attorney in California.
They will also provide each California customer who has cancelled their account within the four years preceding the filing of the Preliminary Injunction in this case and who have not submitted a complaint to the agencies or entities referenced above a refund for magazines not received.
The defendants have been ordered not to violate any provision of the federal regulation pertaining to telemarketing sales and mail or telephone order merchandise rules, including, but not limited to: 16 Code of Federal Regulations (C.F.R.), section 310.3(a) 16 C.F.R. section 310.4 (a); 16 C.F.R. section 310.4 (d); and 16 C.F.R. section 435.1.
The defendants are also ordered to pay civil penalties in the amount of $50,000.00.