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Issue Date: Vol. 52, No. 7, July 2012, Posted On: 7/9/2012

FTC Returns $3M To Victims Of DVD Vending Machine Scam

Emily Jed
vending, vending machine, DVD vending machine, DVD kiosk, Federal Trade Commission, American Entertainment Distributors Inc., DVD vending machine scam, business opportunity swindle, biz-op scam

WASHINGTON -- The Federal Trade Commission is mailing 454 refund checks totaling more than $2.9 million to investors in a swindle that promoted video rental machines as a business opportunity.

The FTC alleged in its case against American Entertainment Distributors Inc. that the defendants deceived consumers into paying $28,000 to $37,500 apiece for video rental vending machines by telling them they could expect to earn between $60,000 and $80,000 a year, or recoup their initial investment in six to 14 months. | SEE STORY

In reality, the five companies and five individuals charged in the scam had no reasonable basis for their claims and all investors lost money, the FTC charged.

The commission has resolved its claims against nine of the 10 defendants in its case against American Entertainment Distributors. Its litigation against the final defendant is underway.

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