American Entertainment Distributors

The FTC alleged in its case against American Entertainment Distributors, Inc., that the defendants — five companies and five individuals — deceived consumers into paying $28,000 to $37,500 apiece for video rental vending machines by telling them they could expect to earn between $60,000 and $80,000 a year, or recoup their initial investment in six to 14 months. In fact, according to the FTC, the defendants had no reasonable basis for their claims and all investors lost money.

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