USA NEXT caught in deception: Conservative Court ruling

Discussion in '2005 Archive' started by ASLANSPAL, Aug 26, 2005.

  1. ASLANSPAL

    ASLANSPAL
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    The US Court of Appeals for the Fourth Circuit - one of the most conservative courts in this country - just upheld a $500,000 penalty against USA Next on a matter in which USA Next sent a misleading mailing to seniors that made it look like the mailing was from Social Security. It seems USA Next has a habit of presenting misleading, illegal advertising and yet another Court has called them on it -- this time, a conservative appeals Court.


    USA is a nonprofit, lobbying and advocacy group organized to
    educate and mobilize senior citizens on a variety of issues affecting
    them, including Social Security benefits. In 2002, USA reported total
    revenues of $24,975,370 and a net profit of approximately $500,000.
    USA solicits money and other support from individuals through mass
    mailings.USA designs its envelopes to entice recipients to open the
    envelopes, and it mails information and solicitations repeatedly to the
    same people.


    Ruling on deceptive practices

    http://pacer.ca4.uscourts.gov/opinion.pdf/041804.P.pdf
     
  2. fromtheright

    fromtheright
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    A deceptive-appearing ENVELOPE? Who hasn't gotten junk mail in which an envelope didn't have something "official-looking"? Yes, it's irritating, and yes, even misleading. I would be curious if the LETTERHEAD was deceptive or the substance of the letter, but this seems excessive. Did the envelope actually SAY it was the SSA, I wonder (I must admit I haven't read the PDF of the Court's opinion which would include a summary of the facts).
     
  3. Phillip

    Phillip
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    The envelope has preforated "tear-off" edges and says: "Social Security Information Enclosed" and is also stamped "Social Security Information". It looks very much like an official SSA mailing.

    Uh, how are they reporting a net profit when it is a nonprofit status? (Just curious.)
     

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