The Federal Trade Commission is mailing $3 million in refunds to more than 172,000 consumers who were falsely promised free gifts and wrongfully paid monthly fees for “program memberships” in discount buying and travel clubs.
Victims of the “Wal-Mart Shopping Spree” scam will receive a total of more than $3 million in refunds. These are legitimate checks, and the FTC urges consumers to cash them.
In the case, which originated in 2008, the court banned Brian K. McGregor, the architect of the scheme, from telemarketing and selling program memberships. McGregor and Membership Services Direct Inc., also known as Continuity Partners Inc., were ordered to pay $28.2 million.
The free gifts promised to consumers included shopping sprees, movie passes and gas vouchers.
The amount of money consumers receive from the redress will vary, depending on how much they lost in the scam. The average check will be for about $18 per consumer. The refund checks must be cashed within 60 days of receipt, or they will become void.
