Case:
State of Minnesota, by
its Attorney General,
Hubert H. Humphrey III,
Plaintiff,
vs.
Susan Dean,
d/b/a Deans Executive Publishers, Inc.,
a/k/a Dean’s Executive Publishing,
and John Does 1-3,
NATURE OF CASE
This is a civil consumer fraud lawsuit in which Attorney
General Hubert H. Humphrey III, on behalf of the State of
Minnesota, seeks declaratory and injunctive relief, restitution,
civil penalties, costs and reasonable attorney fees. Defendants
engage in a scheme to defraud consumers by offering to sell
information on how to send first class letters through the U.S.
Postal Service with two-cent stamps. Defendants falsely
represent that the practices they promote are lawful and fail to
disclose material facts concerning their offer, including the
fact that consumers who intentionally underpay postage may
violate federal law and are subject to a fine of up to $5,000 per
piece of mail.
BUSINESS PRACTICES
8. Defendants purport to offer consumers a legal means of
sending first class mail for two cents. Defendants advertise
this program through one or more on-line computer communication
services.
9. After receiving an inquiry from a prospective customer
via the on-line service, defendants respond with correspondence
through the U.S. m herein by reference.
10. In their offer to consumers, defendants represent that
the offer “was sent . . . by the US Postal Service via FIRST
CLASS MAIL FOR ONLY TWO CENTS.”
11. Defendants’ offer arrived bearing a two-cent stamp with
thirty cents postage due.
12. In the solicitation, defendants offer to provide the
customer with a “special POSTAL RESEARCH REPORT explaining how
this procedure is possible and complete instructions for using
this special postal procedure,” and also to provide consumers
with “a non-exclusive right to resale” so that consumers may
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“market this information to others.” The offer represents that,
“[w]ith almost 37,000,000 opportunity seekers and mail order
entrepreneurs that are available on mailing lists, we’re talking
about a very serious money-making opportunity here.” Defendants
also offer a “PROVEN mail order marketing plan that can easily
earn you in excess of $300.00 per day….”
13. Defendants represent to consumers that “THIS IS NO
GIMMICK! THIS PROCEDURE WORKS!”
14. To obtain information about defendants’ services in
addition to that contained in Exhibit 1, consumers must pay
defendants at least $15.00.
15. After a consumer pays the fee, defendants send the
“postal research report.” The report is attached as Exhibit 2
and incorporated herein by reference.
16. In the “postal research report,” defendants represent
that their instructions for mailing first class mail with two-
cent stamps are legal. Specifically, defendants represent that
federal statutes provide for a “non-domestic mail” rate of two
cents and give instructions which purport to designate mail “non-
domestic.”
17. While affirmatively representing that their services are
legal, defendants fail to disclose to consumers the material fact
that consumers who follow defendants’ directions will violate
federal laws.
18. Defendants’ advertising materials are misleading and
deceptive because they create the false overall impression that
the scheme is a lawful means of sending mail with insufficient
postage. The United States Postal Service processes most mail
with automated equipment which does not always detect
insufficient postage, but when the insufficient postage is noted,
the mail is delivered postage due. If a consumer intentionally
underpays postage, the Postal Inspector will notify the consumer
that the consumer’s actions are illegal. Any further intentional
underpayment will result in civil or criminal sanctions. In
fact, individuals who intentionally underpay postage have been
prosecuted by the United States Postal Service for mail fraud
pursuant to 18 U.S.C.A.
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Posted under Home Business Scams
This post was written by admin on December 18, 2008
