WordSmart agreed to settle charges of making false and unsubstantiated claims related to the benefits of its educational products.
Every parent wants their child to have the best possible chance of getting into a good college. Sometimes that includes enlisting the help of educational programs to boost their college admittance scores. But millions of consumers who tried to find that assistance from WordSmart Corporation only saw a decrease in their bank accounts.
The Federal Trade Commission announced Thursday that educational services company WordSmart Corporation and its president agreed to a suspended judgement of $18.7 million to settle charges of misrepresenting the benefits of its educational programs and violating the Telemarketing Sales Rule.
According to the FTC complaint, WordSmart charged millions of consumers $15 to $300 for programs the company claimed would improve children’s performance in school or on standardized tests.
WordSmart often marketed the programs with infomercials featuring quiz show host Alex Trebek.
In the ads, company allegedly promised that by using WordSmart for a total of 20 hours, students were guaranteed to improve letter grades by at least one GPA point, SAT scores by at least 200 points, ACT scores by at least four points, GRE and GMAT scores by at least 100 points, as well as improve IQ scores.
Additionally, the FTC claims the company repeatedly called consumers whose phone numbers were listed on the National Do Not Call Registry, refused to honor requests to stop calling, and failed to connect a consumer to a sales representative within two seconds after a consumer answered the phone.
The FTC order prohibits WordSmart and its associates from misrepresenting the benefits, performance, or efficacy of their educational goods or services.
Under the settlement, the $18.7 million judgement will be suspended upon the payment of $147,400. The full judgement will become due immediately if the company or associates are found to have misrepresented their financial condition.
FTC Settlement Bars WordSmart from Deceiving Parents With Unsupported Claims About its Education Products [Federal Trade Commission]
by Ashlee Kieler via Consumerist
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