The U.S. District Court in Arizona has...
The U.S. District Court in Arizona has ordered a halt to a sales scheme in which companies misled people into buying into a cleaning fluid company and then encouraged them to recruit other investors, the Federal Trade Commission said. According to court papers, Phoenix-based Rainbow Enzymes and related firms recruited customers to pay $3,000 to serve as licensed sub-manufacturers of Rainbow Connection, a cleaning fluid. The product turned out not to be a cleaning product, the court reported. But licensees were offered a fee to recruit others to make it, with the money coming from the payments of the new participants, the court said.
Sign up for Essential California
The most important California stories and recommendations in your inbox every morning.
You may occasionally receive promotional content from the Los Angeles Times.
