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Electronic Processing Systems
Settles FTC Charges





WASHINGTON, Oct. 8, 2002 -- The Federal Trade Commission today said it has settled a complaint alleging that unscrupulous marketers misled thousands of consumers into paying $480 apiece for a worthless medical billing work-at-home business opportunity. The settlement is the second law enforcement action of its type in the last three weeks.

The latest action brings to a close the FTC's case against Nevada-based Electronic Processing Services, Inc. (EPS) and its principal David Stewart. The FTC alleged that these defendants defrauded consumers by misrepresenting their relationship with physicians, how willing those physicians would be to sign up for medical billing help, and what consumers could expect to earn by working at home.

"Companies claiming that consumers can make easy money rarely deliver on their promise," said Howard Beales, III, Director of the FTC's Bureau of Consumer Protection. "Unfortunately, the purveyors of fraudulent medical billing work-at-home scams continue to trap unwary consumers in their web of misrepresentations. We urge all consumers to look very carefully at these pitches before spending their hard-earned money."

According to the FTC's complaint, EPS and Stewart violated Section 5 of the FTC Act through a variety of misrepresentations to consumers. The final order announced today prohibits EPS and Stewart from misrepresenting that they have job openings or work-at-home positions to fill, that work-at-home opportunities are available in particular parts of the country, that they will provide consumers with the names of doctors who are likely to become billing clients, or that they have established relationships with doctors. The order also prohibits the defendants from telling consumers that they can earn a specific level of income through work-at-home medical billing and from failing to disclose material information concerning refunds or guarantees.

The order requires the defendants to pay $23,400 in redress, plus an estimated $5,000 from merchant account reserves. However, as the cost of administering any redress program would far exceed funds available for redress, the FTC does not anticipate that defrauded consumers will obtain reimbursements.





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