Response to October 4, 2010 FTC Swish Marketing Inc. Settlement
05 Oct, 2010, 06:00 ET
PALO ALTO, Calif., Oct. 5 /PRNewswire/ -- On September 24, 2010, after three years and several hundred thousand dollars in legal fees, Jason Strober was informed that the Federal Trade Commission (FTC) accepted a settlement proposal of $850,000. In a civil suit, the FTC accused the company Strober co-founded, Swish Marketing, of misleading advertising. As one-third owner of Swish Marketing, a small, closely held company, the FTC sued the Company and all three founders individually.
"We are confident that Mr. Strober would have prevailed in court," said Strober's attorney, Brian Grossman of Tesser and Ruttenberg. "Mr. Strober settled because the FTC viewed this as a test case and it became too expensive to continue fighting. We see this as a classic case of overreaching by FTC regulators."
Strober plans to start ProSmallBusiness.org (http://www.ProSmallBusiness.org) where he will blog about his experiences with the FTC, including suggestions for best practices to thwart unfair FTC action against other small businesses.
"Entrepreneurship has become a matter of survival in our country," said Strober. "We simply cannot have federal regulators bullying small business people. The FTC's power to harass and bully entrepreneurs they don't like is truly scary."
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