Invention promoter fined $10 million

July 21, 2008 7:34:37 PM PDT
An invention promoter has agreed to pay $10 million to settle federal charges it scammed consumers across the country.

Davison Design and Development was accused of using false claims to trick customers into paying up to $12,000 to evaluate an invention.

The Federal Trade Commission had seen this before.

"I would say the invention promotion business is a business in which consumers should be extremely cautious," FTC spokesperson Elizabeth Tucci said.

Margaret Johnson, 81, of Morgan Hill learned that first hand. She spent nearly $1,000 trying to patent a birthday candle holder.

Johnson was one of 17,000 people nationwide who were tricked into spending money by a company that has since been forced to close.


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