A New Hope company and its two owners have been charged with running an illegal sales scheme on Amazon that collected more than $15 million from consumers over the past year.
Jessie Conners Tieva and Matthew Tieva, and their company Sellers Playbook, were named in a recent complaint filed in federal court by the Federal Trade Commission and the Minnesota Attorney General's Office.
The company and the Tievas have no affiliation with Amazon. Rather, they were promoting a business model for merchandising products on Amazon.com's third-party sales platform. Sellers Playbook made "false and unsubstantiated" claims, including that its customers could make $20,000 a month and a potential net profit of $1.29 million by selling on Amazon, the charges say.
Few if any of Sellers Playbook's customers achieved such results, and the defendants had "no adequate basis" for making such profit claims, according to the complaint filed in U.S. District Court in Minneapolis.
Exposure Marketing, another company affiliated with the Tievas, also was named as a defendant. Jessie Tieva is the secretary and founder of Sellers Playbook and president of Exposure Marketing, while Matt Tieva is the CEO of Sellers Playbook and Exposure Marketing, court documents say.
The Tievas, who are husband and wife, could not be reached for comment Monday. U.S. District Court Judge Donovan Frank signed a temporary-restraining order last week halting the Sellers Playbook operation.
Amazon, in a statement, said it has "zero tolerance for fraud and abuse and will continue to cooperate with law enforcement to pursue criminals."
The defendants have been charged with nine counts in connection with the alleged misrepresentations, including violations of the federal Consumer Review Fairness Act and the Minnesota Prevention of Consumer Fraud Act.