Digital Altitude Lawsuit: Why the FTC Shut It Down
This post details the Digital Altitude lawsuit and why the FTC shut it down
Digital Altitude Lawsuit: Why The FTC Went After Them
The Federal Trade Commission is suing Digital Altitude/Aspire. They are being
Likewise, the Digital Altitude lawsuit alleges that the defendants, which also include ten related companies and four additional individuals, operate “a deceptive scheme that has caused at least $14 million in consumer injury.”
The Case Against Digital Altitude
The following is the case against Digital Altitude according to the FTC:
In numerous instances, Defendants operate an online enterprise, falsely representing to consumers that they will earn large sums of money if they join the Digital Altitude or “Aspire” program. Similarly, Defendants tell consumers they can earn “six figures online in the next 90 days or less,” and that experienced business coaches will help the consumer build a successful online business. . . .
Also, there is good cause to believe that Defendants have engaged in and are likely to engage in acts or practices that violate [laws prohibiting unfair or deceptive business conduct]. Therefore, [the FTC] is likely to prevail on the merits of this action. The FTC identifies 11 different companies as “alter egos” of Digital Altitude itself. Also, the court has grouped all of the following as just “Digital Altitude”.
- Digital Altitude LLC,
- Digital Altitude Limited (UK)
- Aspire Processing LLC is a Nevada company
- Aspire Processing Limited is a UK company
- Disc Enterprises is a Nevada company
- Aspire Ventures
- Aspire Processing Limited
- Disc Enterprises is a Nevada company
- Rise Systems & Enterprise is a Utah company
- Rise Systems & Enterprise LLC is a Nevada company
- Soar International Limited is a Utah company
- The Upside LLC is a California company
- Thermography for Life LLC (dba Living Exceptionally Inc.) is a Texas company
Moreover, for the sake of simplicity, I’ve grouped all of the above companies as just “Digital Altitude”.
Michael Force Was Very Convincing
Michael Force, the creator of Digital Altitude, has been in the internet marketing industry for a long time. Force was involved with other multi-level marketing companies like the Empower Network. Empower Network was one of the biggest pyramid schemes around at that time; it launched in Oct 2011 and out in three short years, just to give you a taste of what’s to come.
The defendants’ operation misled thousands of consumers for several years. Moreover, people who joined thought they would make a substantial income by promoting highly exaggerated marketing tactics. Michael Force won the trust of thousands of members looking for a huge financial payday. He was very convincing and charismatic. Also, one of the exaggerated claims from Michael Force and Digital Altitude to its members included making “six figures in 90 days or less”.
Too Many People Fell For The Hype
I’ve had specific reasons for telling people not to join Digital Altitude/Aspire, or its sister company MOBE for quite some time now. In addition, I wrote a post titled “Is MOBE A Scam – How To Steal Money Without Remorse” in which I said the following:
“Let me say this: The Federal Trade Commission…has determined that an MLM company primarily generating revenue via sales to recruited affiliates is a pyramid scheme.
You can’t be providing a genuine product or service value when nobody outside of your income opportunity is paying for your product and/or service.
That’s the core of the problem the FTC has.
Likewise, this was the same situation with MOBE. Only the people within MOBE were buying what MOBE was selling. Most importantly, they had to keep making sales within MOBE to make the business viable.”
The bottom line is this: An MLM company without significant retail activity is a pyramid scheme.”
Don’t get caught up with questionable multi-level marketing hype; for your sake and the sake of your family build a real online business that’s actually YOURS!
Digital Altitude Got Caught
The FTC has done its homework and concluded the following: Retail revenue in MOBE among its members/participants is quite substantial. Therefore, If the majority of company-wide revenue is NOT derived from the sale of products and services to retail customers, then look out: You’re in the crosshairs of the FTC! These ARE NOT retail products available to the general public, but digital products members were REQUIRED to buy.
In short, if they wanted to reach substantial income levels within the organization, members had to buy these products. Further, let’s look at the prices for each of these products you are REQUIRED to buy if you want to reach the higher income levels: Below are products Digital Altitude/Aspire members are encouraged to purchase.
- Aspire Walker (Digital Business Sales System) – $37/month
- Hiker – $67/month
- Aspire Climber – $127/month
- Base (Digital Business Mastery Course ) – $597 (one-time)
- Rise (Digital Marketing Mastery Course) – $1,997 (one-time)
- Ascend (Digital Business Profit Workshop) – $9,997 (one-time )
- Peak (Digital Business Prosper Retreat) – $16,997 (one-time)
Also, a
For example, if you only have an Aspire membership, you won’t be able to promote an Apex membership and earn
$37+$67+$127+$597+$1997+$9997+$16997+$27997 = $57,816!!
That’s right! $57,816!!
Also, the worst thing is that most beginners are not aware of all the different upsells that are waiting for them. Digital Altitude’s website doesn’t mention a single price or upsell on its products page!
“Your Pain…Let Me Remove Your Pain…”
There
“You’re looking for a very unhappy group of people who are in physical or emotional pain, so you can help alleviate their pain in return for their money.”
Make no mistake: Michael Force understood and applied what Matt Lloyd was saying. Do you understand what
What Is Your “Pain”?
Their “pain” could be a difficult marriage, a very painful breakup with a life partner, or a bitter divorce. Many of these people may be enduring a bad relationship for the sake of their children or a very painful, ongoing dispute with family members. Pain could also come in the form of serious financial reversals and chronic health issues.
Likewise, others have lost everything to pay medical bills and are living with people they don’t want to live with. Some live with family members who need medical treatment or other services and cannot afford it. They helplessly watch their family members suffer. Similarly, this type of “pain” can be particularly devastating: the pain of watching a family member’s health deteriorate and YOU HAVE NO MONEY OR RESOURCES TO HELP THEM!
Standing by helplessly with no financial resources chips away at your self-esteem, it creates anger, and you are constantly looking for “a way out.”
Let me make this clear: the “happy, shiny people” you see at these seminars may look like they have no pain, but they do. Believe me, they do!
6 Figures in 90 Days to “Remove Your Pain”
The second reason why people fall for the lie promoted by MLM organizations is the promise of making money quickly in a short period. Think about it: If you are “in pain” and need a way out, there’s a possibility you’re going to say to yourself: “This could get me out of the difficult situation I’m in!” Likewise, p
You hear all the excuses: “I don’t have time when I get home from work” “I’m too tired at the end of the day” “I don’t know how to write blog posts” or “I don’t like to write”. There’s an excuse for every day of the week. But Wait A Minute!.. Presto! Don’t worry
The Digital Altitude Lawsuit Presents A Bleak Future For MLM “Schemes”
When you consider the thousands of people who were dependent on the income from Digital Altitude, with one court decision, ALL OF THEIR EARNINGS ARE GONE! In addition, when Digital Altitude got shut down, their online business
Moreover, the courts and lawyers suing Digital Altitude will NEVER get the money back that these people lost. Even if some members of Digital Altitude are fortunate enough to get
How would you feel if thousands of dollars of money YOU WERE DEPENDING ON vanished overnight, never to be seen again? With the closure of Digital Altitude, Empower Network, and MOBE – from where I’m standing, there’s no future in promoting high-ticket multi-level marketing organizations. In short, they will have to completely change their business model if they want to avoid the crosshairs of the FTC. The FTC is on the warpath to rid the internet of MLM scams.
Warning: The RED Flags of Schemes and Scams Online
These are some of the things that you need to watch out for with multi-level marketing companies similar to Digital Altitude, as they are red flags that should not be ignored.
- A FREE Trial Is NOT Offered By the Company
This is a big one to look out for. Most information products are worthless, and if you could jump directly into those products and “try them out” before you had to invest in them, you would never invest in the low-quality substance. That is why they hide behind a payment. If their information is so good, should they not prove it by giving you a taste of it?
Did Digital Altitude MLM Opportunity Offer a Free Trial? NO
2. Companies That Don’t Clearly Outline Pricing
If you go to a sales page for a product and they don’t disclose the price clearly, you will likely get “duped.” Any legitimate company will offer clarity on pricing and have a pricing page on their website. MANY companies in this industry HIDE their pricing; it is unethical, and it will almost certainly scam you. Also, if the company charges hundreds or even thousands of dollars for their products or for joining their business “opportunity,” it should be of concern.
Did the Digital Altitude MLM Opportunity Outline Clear Pricing? NO, because as stated above, there were too many hidden upsells and back-end charges that the average consumer was unaware of.
3. MLM Companies That Use Video Sales Pages / Squeeze Pages
If you visit a “sales page” and the only thing you see on it is exaggerated claims of quick money without very little effort, this is almost certainly going to be an expensive, overpriced scam. This is a marketing tactic used to HIDE pricing but also to hide the product itself. They typically ask for your email or a small payment, and then you are going to be put through an extensive and expensive sales funnel.
Did Digital Altitude Use a Video page for their opportunity? YES
4. Companies That Don’t Have a High TrustPilot Rating
At the time of this writing, I could not find a Trustpilot rating for Digital Altitude. TrustPilot is the place where you should be going to get real consumer reviews about products/services that you plan on buying. If a company doesn’t exist on this website or has a rating lower than 4.5 out of 5 stars, then you may want to second guess it, and there are going to be better programs and services available.
Did Digital Altitude MLM Have a High TrustPilot Rating? NO
5. Multi-Level Marketing Companies That Sell “Riches” Without Telling You the Process
If you are being pushed by the idea that you are going to be “rich” or that you’ll be able to “make money in a short period ” without telling you what you will be doing to earn this money (in a specific way), then they are selling the “sizzle”…and chances are there is no “steak” after you make your purchase. Avoid programs these types of programs like the plague.
Was the Digital Altitude MLM Income opportunity confusing? YES
6. Companies Without an Easy Way to Contact Them
If you don’t have a direct way to contact the company to answer questions about their program, then they are hiding behind something. That is the first clue, and I recommend you test it. If the company has an email address, email it. If you don’t get a response within 48 hours at most, then that is probably the sort of help you can expect in the future.
Can you easily contact the administrators of Digital Altitude? YES
7. Companies That Don’t Offer Direct Access/Communication with the Owners
Who owns the product? Can you get help and/or communicate with them directly? If NOT, then this program is more than likely in the business of taking your money. CEOs in the opportunity world who are not willing to directly communicate with their customers have a “too good for you” mentality, and they should be avoided.
Was it easy to contact the owner of Digital Altitude? NO
8. Companies That Are Just “Information” Only
If they are just providing you with “ideas” about how you could create a business without offering you all the tools, services, and levels of ongoing support that you need to succeed online, you are going to have a tough time succeeding. Many companies charge you for their information and then tell you that you need to purchase all sorts of stuff to use the techniques taught.
Was the Digital Altitude MLM opportunity just information? YES. There were NO retail products associated with Digital Altitude you could purchase if you were not a member.
As you can conclude from the above information, multi-level marketing companies are not all what they claim to be. Too often, people put their hope and trust in someone else making money for them instead of learning how to create prosperity with their own online presence. People look for others to rescue them financially when, in reality, YOU have to come to your own financial rescue!
However, there is a BETTER OPTION if you want to create your own online business. There is a platform available that will teach you step by step how to build your own online business, an ethical platform whose primary focus is to help everyday people learn how to make money online, a platform where you can immediately have access to individuals who are highly successful with their online businesses. Introducing Wealthy Affiliate, The Industry Leader in the Online Business Space…
- WA Offers a Free Trial
- WA Offers Clear Pricing
- WA Offers a comprehensive website
- WA has a High TrustPilot Rating
- WA is not a get-rich-quick scheme
- WA offers a clear way to contact the company
- You can contact Kyle & Carson directly
- WA offers tools and support
(1) Companies That Don’t Offer a Free Trial.
This is one of the key reasons that I want to introduce you to Wealthy Affiliate. You can get a “test drive” to Wealthy Affiliate, but that doesn’t end, and there is NO credit card requirement. This is their Starter membership, and it includes more than any paid product I have seen in this industry. Here are just a few things that you get within the COMPLETELY FREE Starter membership.
- One Free Profit-Ready Website (Hosting Included)
- Getting Started Training, 10 Full Video Lessons
- 7 Days of Full Mentorship & Expert Help
- Communication Directly with Kyle & Carson (the founders)
- Keyword and Market Research Tools
- The Affiliate Opportunity Platform
- Ability to Network with Millions of Fellow Entrepreneurs
- 100’s of training resources
- And Much More!
(2) Companies That Dont’ Clearly Outline Pricing.
Wealthy Affiliate’s pricing page clearly outlines three available memberships: a Starter membership (FREE), a Premium ($49/month), or a Premium Plus+ ($99/month). There are no upsells and nothing more complex than this. You are not obligated to upgrade, but if you do decide to, you can run a million-dollar online business utilizing the platform and tools that Wealthy Affiliate offers.
(3) Companies That Use Video Sales Pages / Squeeze Pages.
Wealthy Affiliate offers a comprehensive website where you can learn more about the exact process of building an online business and all of the platforms, technology, and services involved that are offered to you as a member. This includes a thorough outline of WA’s education, hosting, website, domains, community, and success elements.
(4) Companies That Don’t Have a High TrustPilot Rating.
WealthyAffiliate.com has a 4.8 STAR rating on TrustPilot. The owners personally get back to every comment, and this leads to the industry. It is tough to achieve a rating like this in any industry, let alone the make-money-online niche.
(5) Companies That Sell “Riches”.
One thing you will not hear from Wealthy Affiliate in any of their training or marketing is “get rich quick.” The reality is that to build a business, you first have to build a solid foundation and understand it. Wealthy Affiliate provides you with the tools, training, and platform you need to create a business of any size online (even million-dollar websites), but you must be realistic about the process. It will take some hard work and dedication.
(6) Companies Without an Easy Way to Contact Them.
You can contact Wealthy Affiliate directly from their website without being a member. They have a contact form, and the owners freely share their email addresses if you ever need to get in touch with them or have any questions. They are kyle@wealthyaffiliate.com and carson@wealthyaffiliate.com. Feel free to reach them directly if you have questions, and of course, as a member, you are going to have access to them within the community. Which leads me to…
(7) Companies That Don’t Offer Direct Access/Communication with the Owners.
Wealthy Affiliate is the most transparent company in the space and offers you access to Kyle and Carson, the founders, directly within the community. If you want help from them directly, just ask. You can even access them for their help and mentorship within the first 7 days of the Starter membership…so without paying a dime, you can access both of the owners directly!
(8) Companies That Are Just “Information”.
Many things are required to build a successful business online, and Wealthy Affiliate includes all of them. To build an online business, you need a website, top-tier hosting, marketing and research tools, ongoing education of the latest marketing strategies, writing tools/platforms, and a way to find the TOP opportunities online. Not to mention support, mentorship, and expertise. These are ALL things that Wealthy Affiliate provides you with any level of membership, equipping you to create, grow, and manage a business of any level online.
No other company in the industry offers a free “test drive,” as they likely don’t have the confidence that someone would purchase a trial. WA gives you access to its platforms, websites, hosting, research tools, community, and support within the free membership…so there is ZERO risk, and you can make a decision if you ever want to purchase a premium membership.
Affiliate Marketing Is A Legitimate Way To Make Money Online
There are legitimate programs that will put you on the right track to success online enabling you to build a highly profitable, consistent business in the Affiliate Marketing arena. However, the problem is many of the people who passed on these platforms in favor of Digital Altitude, MOBE, Empower Network, and the like did so because of the promise of big money in a short period!
I know for a fact that the commissions from traditional affiliate marketing platforms were considered “chump change” compared to the commissions from Digital Altitude, MOBE, Empower Network, etc. I can’t stress enough the fact that many people who are involved in MLM joined because of the promise of a fat payday in a relatively short period. Initially, they might come off as very concerned and helpful and that is only because they want you to hand over your hard-earned money.
Know What You’re Getting Into
Before you join your next so-called “business opportunity”, remember to always do your research. I have fallen for a number of these scams in the past and I wouldn’t want anyone to have to lose thousands of dollars to learn the hard way. I spend $49/month to run a legitimate online business and I don’t go around recruiting family and friends into some MLM “business opportunity”.
In conclusion, The Digital Altitude Lawsuit emphasizes the importance of building your own online business
Talk Soon,
Howard
I really like your article on the Digital Altitude Lawsuit. You can tell you really put a lot of thought and research into your article. I found the article to be precise and straight to the point. I admire articles that shed light on scams such as Digital Altitude. I hope this lawsuit will help the people who have lost thousands of dollars and with the help of your article you are informing consumers on what to look out for to prevent being scammed by the various products offered through this scam artist. It is unfortunate that people would invest in such fraudulent schemes, however, I know people are looking to make money and these fraudulent products make promises and guarantees that are not true. Thank you for shedding light on this ridiculous scam and also grouping all of the Digital Altitude schemes that have taken advantage of consumers. We need more articles like these that shed light on the pyramid schemes and with more of these articles, hopefully it will prevent others from falling into the trap of false promises and being scammed out of thousands of dollars. Thanks, Howard.
Hey Melissa,
Thank you for your detailed comments. I’m more than happy to help people keep their earned-earned money! I wish you much success here at WA!
Talk Soon,
Howard
Hello Howard,
Looking back at the many pyramid scams I’ve fallen for, it is clear to me now that what i was actually looking for wasn’t money.
What i was really yearning for was a way out of my “pain”.
Now that i can clearly point out my errors, it makes me wonder how anybody ever falls for MLMs. I hope more people get exposed to the reality that it takes hard work and persistence to make money online.
Kudos to you for the good work.
MLM is the worst thing that can happen to anybody. I know many people that are in ardent poverty because of MLM. As you said they will flag a very promising note that makes people fall for it only to loose all in the end.There are ways to make an honest money in internet as you have rightly said which wealthy affiliate is one of them but people still fall for these make money quick people.Thank you for this post, you have given a clear instruction, those that have ear let them hear