Online Business Coach Lurns the Hard Way Not to Deceive Consumers

  • The FTC settled with Lurn, Inc. and affiliated individuals to resolve allegations that they violated the FTC Act and the Telemarketing and Consumer Fraud and Abuse Prevention Act by making deceptive marketing statements when promoting online business coaching services.
  • According to the FTC’s complaint, Lurn made over $65 million by selling programs—which purported to teach consumers how to earn substantial income online—by routinely making false marketing statements regarding the huge profits that consumers would be able to make after purchasing its programs for thousands of dollars. However, very few, if any, purchasers actually made money. Lurn also allegedly pitched buyers of the pricy programs on additional “coaching” services that cost up to $10,000.
  • Under the terms of the settlements, Lurn and its CEO must pay $2.5 million for consumer refunds, must provide notice of the case to customers, and are prohibited from making deceptive earnings claims or otherwise deceiving consumers. Two spokespeople for the company also entered separate settlements under which they also agree not to engage in deceptive marketing practices.