SOURCE: Neovi, Inc.

September 10, 2007 15:04 ET

Qchex Prevails -- Another Setback for the Federal Trade Commission (FTC)

SAN DIEGO, CA--(Marketwire - September 10, 2007) - September 10, 2007 - In yet another significant setback for the Federal Trade Commission, the Superior Court of the State of California for San Diego County denied a consumer's claim for damages against Neovi, Inc. and for alleged "reckless business practices." Qchex offers its users the ability to send "paper checks" online using regular email with the online program's proprietary Check Messenger™ technology. The Superior Court found "no credible evidence suggesting Qchex did anything other than provide an avenue to create and deliver checks. The plaintiff's claim that it somehow fostered fraud lacks substance."

The FTC filed suit against Neovi and its officers in September 2006, claiming they violated the fairness provisions of the FTC Act by "creating" and "delivering" unauthorized checks via the Qchex website. Neovi and its officers denied these allegations and in its January 18th order denying the preliminary injunction, the District Court concluded the FTC failed to demonstrate it was likely to prevail on the merits of its suit. This new ruling by the California Superior Court further undermines the merits of the FTC's case against Neovi and its officers by ruling that it is consumers who are responsible for avoiding fraud when receiving checks from people for goods or services they are selling.

"We are pleased with this ruling. It shows how consumers can often become victims of their own greed and recklessness by deliberately ignoring obvious warning signals. The ruling makes clear that Check recipients are responsible for authenticating and validating the checks they receive," said Thomas Villwock, CEO of Neovi. "Qchex is a unique service which provides an easy to use, single point access platform to manage finances on the Internet. With the ability to deliver checks directly to the recipient's desktop printer Qchex offers consumers a way to save billions every year in costs associated with delays, US Mail and other forms of physical transportation. Qchex's innovative technology offers tangible benefits for consumers and businesses. The service is currently undergoing major technology restructuring to further improve user experience, increase bandwidth and add new service models."

James Danforth, Neovi's COO, adds, "This case also highlights that even if Qchex checks had no warning statement at all, the California Superior Court found it is still the check recipient's responsibility to avoid fraudulent transactions."

Neovi, Inc., based in San Diego, CA, is a leading publisher and manufacturer of software for both home and business use.

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Contact Information

  • Contact:
    James Danforth
    Neovi Data Corporation
    10946 Willow Court
    San Diego, CA 92198
    Tel: 858-217-3121