The FTC Has Acted Against Real Estate Seminars Endorsed by Christina and Tarek El Moussa
A court has issued a temporary restraining order against real estate seminars that featured celebrity endorsements from stars like Flip or Flop's Christina and Tarek El Moussa.
The FTC release stated Zurixx LLC used "bogus earnings claims to sell" the workshops.
A federal court has issued a temporary restraining order against "misleading" real estate seminars that have been endorsed by HGTV stars, including Flip or Flop’s Christina and Tarek El Moussa.
The FTC issued a release stating that the order prohibits Utah-based Zurixx, LLC and affiliated companies from “making unsupported marketing claims and from interfering with consumers’ ability to review Zurixx and its products.”
The seminars reportedly offered coaching and training on how to turn a large profit from the house flipping business. The FTC reported that the ads often featured Christina and Tarek, Hilary Farr from Love It or List It, and Peter Souhleris and Dave Seymour of A&E’s Flipping Boston.
The ads promote free events, which the FTC and DCP alleged were, in fact, sales presentations for a three-day workshop that cost nearly $2,000. Presenters at the pricey multi-day event described the course as “beginner," and Zurixx allegedly used them to try and sell additional products that could add up to over $40,000.
“From start to finish, these defendants used the promise of easy money and in-depth information to lure consumers down a path that could cost them thousands of dollars and put them in serious debt,” said Andrew Smith, director of the FTC’s Bureau of Consumer Protection. “When a company tells consumers they have the secret to get rich with little work, we encourage consumers to take a hard look at what’s really being offered.”
And it gets worse: Zurixx allegedly required some consumers who later received refunds to sign an agreement “barring them from speaking with the FTC, state attorneys general, and other regulators; submitting complaints to the Better Business Bureau; or posting negative reviews about Zurixx.”
In a statement to House Beautiful, HGTV said that "HGTV, its sister networks, and its parent company are neither associated or affiliated with Zurixx, nor are we involved in any of our talents' personal business associations with Zurixx."
Zurixx provided a statement to The Hollywood Reporter saying that it "welcomes the scrutiny and anticipates 'a positive outcome as we work directly and openly with the agencies involved.'"
You Might Also Like
