Skybiz Settles with FTC: $20 Million in Consumer Redress Ordered
April 18, 2003
Skybiz.com, Inc. (also known as Skybiz 2000) has settled a two-year-long suit brought by the Federal Trade Commission. In May, 2001, the FTC charged that Skybiz, based in Tulsa, OK, was operating as an illegal pyramid scheme. The company recruited participants into an "internet mall" type MLM scheme.
Defendants have been barred from involvement in any multilevel marketing schemes for periods ranging from seven years to life.
Consumers who were defrauded under the scheme will receive approximately $20 million in redress.
The FTC had been involved in actions against Skybiz in five other countries, Australia, South Africa, New Zealand, Canada, and the United Kingdom, and had assisted five states as well.