"False and unsubstantiated claims"

The Federal Trade Commission has charged LS Enterprises LLC, Internet Promotions LLC and their chief executive, L. Salatto with sending false advertising through unsolicited bulk e-mail (spam). The agency said that if Salatto wants to settle, he would have to buy a $100,000 performance bond before sending spam in the future. He also would receive a warning not to send deceptive claims in his future bulk e-mail. He also would be required to "substantiate claims for the programs he promotes." The agency also said it will publish the charges in the Federal Register for 60 days to allow for comments. Specifically, Salatto would be banned from making unsubstantiated claims about earnings, typical time to reach certain earnings level, income or sales necessary to make a return on investment and free merchandise. He also would be required to show that people receiving his bulk e-mail were willing to get them. The FTC plans to make a final decision on charging Salatto after the 60-day period of Federal Register comments. According to an FTC, many different types of consumer fraud, including Ponzi and pyramid schemes, had lain low since the 1970s, only to encounter a large resurgence in the age of the Internet. Although many types of consumer fraud are old, shabby methods for siphoning money from unsuspecting individuals, the Internet has given many of these schemes a new lease on life as more people without much computer experience start to tentatively wade through the Internet.