On June 13, 2002, ACN settled a case with the Bureau of Consumer Services in Pennsylvania wherein it was alleged that "
independent business owners" (IBOs) were "
slamming" or switching consumer services without authorization. ACN disputed the allegations and the exact details of the settlement are under court seal. However, the suit alleged that 135 informal complaints were filed with the Bureau of Consumer Services (BCS) between June 2000 and November 2001, consisting of 22 consumers alleging that their generation service was switched without authorization ("slamming"), 81 alleged instances of overcharging ("
cramming"), and 32 complaints with allegations of various violations of the commission's regulations contained in Chapter 54, 56, and 57 of Title 52 of the Pennsylvania Code. In August 2010, the Montana Commissioner of Securities and Insurance
Monica Lindeen announced the issuance of a Cease-and-Desist Order and Notice of Proposed Agency Action against ACN, Inc. and several of its founders for operating a
pyramid scheme. In September 2010, the Commissioner moved to vacate the
Cease-and-Desist Order in full settlement of the case. During the Commissioner's investigation, the Commissioner determined that the actions giving rise to the initial concerns were not part of the ACN business model, but instead were isolated instances taking place by certain ACN's independent representatives in Montana. The Commissioner and ACN agreed that ACN would implement additional training with its independent representatives to assist them in better understanding their responsibilities as ACN independent representatives and that ACN would contact its Montana video phone customers to assist them with the installation of their service.
Doe et al. v. Trump Corp. et al. In July 2019, a
SDNY District Judge permitted state-level charges of fraud, false advertising, and unfair competition against Donald Trump and his children
Donald Jr.,
Ivanka, and
Eric related to their involvement with ACN. (The judge, however, dismissed racketeering (
RICO) allegations against the family.) The Trumps are accused of not having disclosed that they were being paid by ACN when they recommended ACN as a sound investment. As part of the discovery process, the Trumps were ordered in March 2020 to provide information from Trump Organization business records for 15 years back to 2005. The Trumps sought to take the case to private arbitration, but the SDNY District Judge denied their request on April 8, 2020. On May 18, 2020, the District Court ruled against ACN and Donald Trump's motion for a Stay in the case. Trump had sought a stay during his term as President of the United States. The case was dismissed from federal court on January 12, 2024. == References ==