OKLAHOMA SECURITIES COMMISSION
Suite 860 First National Center
120 N. Robinson
Oklahoma City, OK 73102
Oklahoma Joins in Action Against Sellers of Laundry Detergent Substitutes Through Business Opportunity
For Immediate Release
Thursday April 23, 1999
Contact: Patty Labarthe- 405- 280-7735
Oklahoma City/////: The Oklahoma Department of Securities has joined the Federal Trade Commission and ten other state authorities in settlements of claims against sellers of a business opportunity that featured products that were falsely touted as effective laundry detergent substitutes.
The action comes as a result of an investigation by the Department that resulted in allegations that Defendants violated the Oklahoma Business Opportunity Sales Act in the offer and sale of a marketing program that promised monthly residual commissions for the sale of TradeNet products. The TradeNet products were a small plastic ball marketed as containing "structured water" called "The Laundry Solution" and a ball divided into two parts, one part of which contained a blue liquid called "The Superglobe" which purported to contain "IE structures," "IE crystals," or "IE solution." However, the Department alleged that evidence did not exist that proves that either "structured water" or "IE structures" are effective alternatives to traditional laundry detergents and liquids.
The Department alleged that Defendants made false claims that The Laundry Solution cleans laundry as well as conventional laundry detergents. The Department also alleged that Defendants made false claims or omitted material information about the chemical contents of The Laundry Solution and The Superglobe, the availability of scientific evidence regarding these products and the results of a report that specifically refuted Tradenet's claim that most or all consumers who tested The Laundry Solution found it to be an effective detergent substitute.
In three separate settlements entered between the Department and TradeNet Marketing, Inc., L.W. Cooper, Top Marketing Business Consulting, Inc., Erwin Richard Annau and Alberto Guerrero, Defendants are enjoined from the following:
1) omitting to state material facts in connection with the offer and sale of business opportunities;
2) promoting, marketing, distributing or selling "The Laundry Solution Globe," "SuperGlobe System," or the "SuperGlobe with Booster," or any other product whose performance claims are based in whole or in part on "structured water" or "IE structures," or any related or similar technologies; and
3) promoting, marketing, distributing or selling any product whose composition or performance claims Defendants represent to be based on scientific principles, data, reports, tests, experiments, or analyses, unless Defendants possess and rely upon competent and reliable scientific evidence including, but not limited to, tests, analyses, research, studies, or other evidence based on the expertise of professionals in the relevant area, that have been conducted, or collected, and evaluated in an objective manner by persons qualified to do so, using procedures generally accepted in the profession to yield accurate and reliable results.
Defendants will collectively pay $155,000 to the federal and state authorities. Oklahoma will receive approximately $13,000 which will be deposited to the General Fund of the state.
Heres how to get information on the Oklahoma Business Opportunity Sales Act: The Oklahoma Department of Securities Home Page and Investor Alerts at http://www.securities.ok.gov/. The North American Securities Administrators Associations (NASAA) has articles available at http://www.nasaa.org/investoredu/ and from NASAA, 10 G Street NE, Washington, D.C., 20002. The FTCs "Wash Daze:Laundry Gadgets Wont Lighten the Load" is at http://www.ftc.gov/ and is available from the FTCs Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580; 202-FTC-HELP (202-382-4357); TDD for the hearing impaired 202-326-2502.