Institute warns against web-business seminars

The Consumers' Institute is warning New Zealanders to avoid "free seminars" being offered by a company facing legal action in the United States.

iNetSeminars is hosting seminars around the country in late May, Consumers' Institute chief executive David Russell said in a statement.

"The glossy invitation features company president Brandon Lewis who promises you'll learn how to meet your financial goals by building a web-based business at home," Mr Russell said.

iNetSeminars is the latest front-name used by troubled US-based website company iMergent. iMergent made promotional tours here in 2002 and 2004 trading as StoresOnline, he said.

Lewis and iMergent face at least five court cases in the United States.

In February the Texas Attorney-General filed a case alleging iMergent misled customers about the services they were buying, misrepresented the income potential from the websites and failed to meet local disclosure laws.

There are also at least four class actions lodged this year by dissatisfied shareholders. iMergent has promised to "defend these actions vigorously".

Mr Russell said after the Texas case was lodged, iMergent started a marketing blitz in Australia and New Zealand. The Western Australian government is investigating its activities .

"The Consumers' Institute has twice warned Kiwis to have nothing to do with iMergent's over-priced service," Mr Russell said.

"We stand by that warning. Not only is the service no good, you'll be dealing with a company that is in serious legal trouble.

"You're better off finding a good local web developer than helping a questionable American corporation pay its lawyers".

- NZPA