Info on American Communications Network (ACN) Mulit-level Marketing program:
The structure of ACN has led some to think that ACN is a pyramid scheme, however despite being litigated in various countries, courts have consistently held that ACN is not a pyramid scheme. In August, 2010 the Montana Commissioner of Securities and Insurance Monica Lindeen (D) announced the issuance of a Cease and Desist Order and Notice of Proposed Agency Action against ACN, Inc. and several of its founders for allegedly operating a "
pyramid scheme."
[28] However, by September, 2010 the Commissioner moved to vacate the Cease and Desist Order, which was unopposed.
[29] In the course of the Commissioner's investigation, the Commissioner determined that the actions giving rise to the initial concerns were not part of the ACN business model, but instead were isolated instances taking place by certain ACN's independent representatives in Montana. The Commissioner and ACN agreed that ACN will implement additional training with its independent representatives to assist them in better understanding their responsibilities as ACN independent representatives, and that ACN would contact its Montana video phone customers to assist them with installation of their service. The Better Business Bureau reported that "Both the Commissioner and ACN are pleased with this positive outcome, and the Commissioner's efforts to protect Montana residents."
[30]
On June 13, 2002, ACN settled a case with the Bureau of Consumer Services in Pennsylvania wherein it was alleged that a small number of IBOs were "
slamming", or switching consumer services without authorization. The exact details of the settlement are under court seal. However, the suit alleged that approximately 135 informal complaints were filed with the Bureau of Consumer Services (BCS) between June 2000 and November 2001. According to the representations made in the informal complaints, 22 consumers alleged that ACN Energy switched their generation service without authorization ("
slamming"), 81 instances of overcharging ("
cramming") were alleged, and 32 complaints with allegations of various violations of the Commission's regulations contained in Chapter 54, 56, and 57 of Title 52 of the Pennsylvania Code.
[31]
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