Anchor ads are not supported on this page.

4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs

Mira Mesa software company in jeopardy?

Accused of violating telemarketing laws, making false claims on product

"Thanks to WordSmart's Accelerated Reading and Comprehension Program you can learn ten to one hundred times faster," says spokesman Alex Trebek."
"Thanks to WordSmart's Accelerated Reading and Comprehension Program you can learn ten to one hundred times faster," says spokesman Alex Trebek."

San Diego-based educational software company WordSmart Corporation is being targeted by the Federal Trade Commission for fraud and for making false claims in regards to the effectiveness of its product. Since 2010, says a new complaint from the Federal Trade Commission, the company, located in Mira Mesa, has earned more than $18 million in revenue.

Profits have increased, not because of results but due to an aggressive marketing campaign that included using names of children in the homes they call and for affiliating themselves with their child's teachers and administrators. Another alleged tactic was to hire Jeopardy host Alex Trebek to host a 30-minute infomercial for its SAT/ACT preparation kits and so-called "Excellence Pack."

Sponsored
Sponsored

In his 30-minute infomercial, Trebek claims, "Thanks to WordSmart's Accelerated Reading and Comprehension Program you can learn ten to one hundred times faster. That's because WordSmart is based on multi-sensory technology that accelerates the way the human brain learns information."

According to WordSmart's website, they are "pioneers in effective learning environments and retention, WordSmart is an award-winning, privately owned company located in San Diego with over 100 employees responsible for Course and Content Development, Tutoring, and Educational Consulting."

Attorneys for the government say otherwise. They accuse Wordsmart's owner and founder David Kay of running a scam on parents of school-aged children. They claim the company completely disregarded telemarketing laws by calling numbers on the no-call list, offered no substantiation as to the product's effectiveness, and for refusing to give refunds.

"Defendants have often contacted consumers initially through unsolicited telemarketing calls made by WordSmart employees or intermediaries working on behalf of Defendants. During these sales calls, the telemarketers have usually used the name of a school-age child living in the home. They have frequently stated that the child expressed an interest in WordSmart goods or services. In addition, they have often given parents the impression that they were affiliated with the child’s school or with the administrators of a standardized test such as the ACT or the SAT. In fact, none of these things were true….

"Defendants have targeted parents of school-age children, and have used deceptive practices to take millions of dollars from such families at least as far back as January 2010. In marketing the ‘WordSmart’ educational goods and services to consumers throughout the United States, Defendants have used illegal methods and made false or unsubstantiated claims in media such as a television infomercial."

Attorneys for the federal government ask that a judge order the company to halt the marketing and telemarketing programs and order the company to rescind the claims it made, pay restitution, and send out refunds for so called "disgorgement of ill-gotten monies."

The latest copy of the Reader

Please enjoy this clickable Reader flipbook. Linked text and ads are flash-highlighted in blue for your convenience. To enhance your viewing, please open full screen mode by clicking the icon on the far right of the black flipbook toolbar.

Here's something you might be interested in.
Submit a free classified
or view all
Previous article

Gonzo Report: Three nights of Mission Bayfest bring bliss

“This is a top-notch production.”
"Thanks to WordSmart's Accelerated Reading and Comprehension Program you can learn ten to one hundred times faster," says spokesman Alex Trebek."
"Thanks to WordSmart's Accelerated Reading and Comprehension Program you can learn ten to one hundred times faster," says spokesman Alex Trebek."

San Diego-based educational software company WordSmart Corporation is being targeted by the Federal Trade Commission for fraud and for making false claims in regards to the effectiveness of its product. Since 2010, says a new complaint from the Federal Trade Commission, the company, located in Mira Mesa, has earned more than $18 million in revenue.

Profits have increased, not because of results but due to an aggressive marketing campaign that included using names of children in the homes they call and for affiliating themselves with their child's teachers and administrators. Another alleged tactic was to hire Jeopardy host Alex Trebek to host a 30-minute infomercial for its SAT/ACT preparation kits and so-called "Excellence Pack."

Sponsored
Sponsored

In his 30-minute infomercial, Trebek claims, "Thanks to WordSmart's Accelerated Reading and Comprehension Program you can learn ten to one hundred times faster. That's because WordSmart is based on multi-sensory technology that accelerates the way the human brain learns information."

According to WordSmart's website, they are "pioneers in effective learning environments and retention, WordSmart is an award-winning, privately owned company located in San Diego with over 100 employees responsible for Course and Content Development, Tutoring, and Educational Consulting."

Attorneys for the government say otherwise. They accuse Wordsmart's owner and founder David Kay of running a scam on parents of school-aged children. They claim the company completely disregarded telemarketing laws by calling numbers on the no-call list, offered no substantiation as to the product's effectiveness, and for refusing to give refunds.

"Defendants have often contacted consumers initially through unsolicited telemarketing calls made by WordSmart employees or intermediaries working on behalf of Defendants. During these sales calls, the telemarketers have usually used the name of a school-age child living in the home. They have frequently stated that the child expressed an interest in WordSmart goods or services. In addition, they have often given parents the impression that they were affiliated with the child’s school or with the administrators of a standardized test such as the ACT or the SAT. In fact, none of these things were true….

"Defendants have targeted parents of school-age children, and have used deceptive practices to take millions of dollars from such families at least as far back as January 2010. In marketing the ‘WordSmart’ educational goods and services to consumers throughout the United States, Defendants have used illegal methods and made false or unsubstantiated claims in media such as a television infomercial."

Attorneys for the federal government ask that a judge order the company to halt the marketing and telemarketing programs and order the company to rescind the claims it made, pay restitution, and send out refunds for so called "disgorgement of ill-gotten monies."

Comments
Sponsored

The latest copy of the Reader

Please enjoy this clickable Reader flipbook. Linked text and ads are flash-highlighted in blue for your convenience. To enhance your viewing, please open full screen mode by clicking the icon on the far right of the black flipbook toolbar.

Here's something you might be interested in.
Submit a free classified
or view all
Previous article

Wild Wild Wets, Todo Mundo, Creepy Creeps, Laura Cantrell, Graham Nancarrow

Rock, Latin reggae, and country music in Little Italy, Oceanside, Carlsbad, Harbor Island
Next Article

Domestic disturbance at the home of Mayor Gloria and partner

Home Sweet Homeless?
Comments
Ask a Hipster — Advice you didn't know you needed Big Screen — Movie commentary Blurt — Music's inside track Booze News — San Diego spirits Classical Music — Immortal beauty Classifieds — Free and easy Cover Stories — Front-page features Drinks All Around — Bartenders' drink recipes Excerpts — Literary and spiritual excerpts Feast! — Food & drink reviews Feature Stories — Local news & stories Fishing Report — What’s getting hooked from ship and shore From the Archives — Spotlight on the past Golden Dreams — Talk of the town The Gonzo Report — Making the musical scene, or at least reporting from it Letters — Our inbox Movies@Home — Local movie buffs share favorites Movie Reviews — Our critics' picks and pans Musician Interviews — Up close with local artists Neighborhood News from Stringers — Hyperlocal news News Ticker — News & politics Obermeyer — San Diego politics illustrated Outdoors — Weekly changes in flora and fauna Overheard in San Diego — Eavesdropping illustrated Poetry — The old and the new Reader Travel — Travel section built by travelers Reading — The hunt for intellectuals Roam-O-Rama — SoCal's best hiking/biking trails San Diego Beer — Inside San Diego suds SD on the QT — Almost factual news Sheep and Goats — Places of worship Special Issues — The best of Street Style — San Diego streets have style Surf Diego — Real stories from those braving the waves Theater — On stage in San Diego this week Tin Fork — Silver spoon alternative Under the Radar — Matt Potter's undercover work Unforgettable — Long-ago San Diego Unreal Estate — San Diego's priciest pads Your Week — Daily event picks
4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
Close

Anchor ads are not supported on this page.

This Week’s Reader This Week’s Reader