need help closing site guys

[cheapdvds]

I recently found out that my site I've been running is probably illegal. I've collected about 15k over the past 6 months and have paid out about 9k in 'prizes'. I've been using the eBook method and I guess thats considered an illegal lottery in California. I live in NY so I'm assuming it is here too. The problem I have is I would love to refund everybody and close it, but I am a college student and have spent my profit in either school or advertising. I don't want to be a "bad apple" and screw people out of their money, but I don't have the resources to pay these people back. Any suggestions would be GREATLY appreciated. Thanks guys...

[spydrman]

Wow, I think this might be a first. You should probably start refunding your customers now. The liability is pretty high for you operating that site if a customer decides to sue you. I wouldn't wait for that to happen. You need to come up with a plan now to refund your customers and prevent future issues.

If you sent out cycled gifts in the form of checks or money orders, you might even be able to ask for that money back to refund customers. It's probably not the best idea though, but if you're sincere and the customers understand then it may eliminate your liability. However, your customers don't owe you anything and in most cases would reject that proposal.

It looks like you may have to save up that money and slowly refund your customers. That looks to be the only way you can compensate your customers and rid yourself of more liability, lawsuits, and headaches. Just my opinion.

[hello]

The best way for you to pay your customers back it to sell whatever you can, get a second or even third job. Work hard to pay back everyone.

Or you can do nothing and take the chance of going to jail.

[ycchen]

Thanks cheapdvds for sharing your experience. As both hello and spydrman indicate, there is no best solution except by trying your best to refund all your uncycled customers.

I am not sure about how much in total you need to refund your customers, probably around 10K, I suppose.

Usually, my standpoint is 100% with the custmers, so I will suggest a 100% refund to unclcyed customers. However, since it is very rare for an honest owner like you to come forward to correct the mistake, I will alter my position a bit to make some suggestion as a way to encourage other sincere owners to begin the refund process.

I guess if you are sincere, honest and open, and explain why this 'deficit' business fail, you might be able to negotiate with your customers regarding the amount of refund, it might be less than 100%. It is not unfair for customers to also pay a price of investing in this risking business. The best negotiation is that both owner and customers pay a price fo this fail investment, so that your refund is managable.

You can either refund ever customers a % of their investment first, and agree to refund the rest in the later date (please be specific). Or you can refund customer according to their priority in the signup date. Early one get refund first.

Of course, you should suggest an amount that you can afford and start the negotiation process. I am sure many customers will excersise their rights to get full compensation, but as a business person, you should know how to bargain with them. And, it is not unfair for the customers to pay a price (learn a lesson) if they weight their options with other matrix-sites that simply closed down and run away.

This not my usual stand on this issue. However, since there are so many dishonest and 'bad' owners out there, I guess it will be customers best interest to encourage more owners to come forward to refund their customers, with an 'affortable' refund policy. (May be 80%??) You can also make a search on this site on the different options of refunding customers. Good luck.

That's my two cents.

[usanews2004]

DO NOT TAKE THE ADVICE OF ANYONE FROM THIS FORUM AND ACT ON IT!

These people are not Lawyers. If any of them are, they are not acting in your best interest. Lawyers in your defense will not give you free legal advice.

CONTACT YOUR LAWYER IN YOUR STATE, FAMILIAR WITH BUSINESS LAW AND YOUR STATE LAWS BEFORE DOING ANYTHING!

Actions you take right now could effect your obligations!

Example: If you refund one person you may be obligated to refund everyone who purchased an e-book from you.


DO NOT REFUND ANYONE, OR GET A SECOND OR THIRD JOB TO PAY IT OFF!

That comment was crazy. Get a second or third job to pay for somthing that someone already purchased?

THERE WAS A PRODUCT PURCHASED!

E-books were purchased right? They are valuable regardless of what people are saying in this forum.

How is the value of somthing determined? Think about it. The amount someone is willing to pay for it.

[MatrixWatch]

Originally posted by usanews2004

CONTACT YOUR LAWYER IN YOUR STATE, FAMILIAR WITH BUSINESS LAW AND YOUR STATE LAWS BEFORE DOING ANYTHING!


This is actually a pretty good idea. Has anyone done this? If so, I'm sure there would be some owners and customers interested in the outcome. Keep us posted.

[JM51]

Originally posted by usanews2004
How is the value of somthing determined? Think about it. The amount someone is willing to pay for it.

Good point. It really is basic economics as long as the customer was informed about the purchase, which they were in most cases. I've read a lot of things in forums saying that eBooks are worthless, but I've never agreed.
Contacting a lawyer is a good idea - good to see some unbiased advice on this board. Staying objective will be the best way to a fair outcome.

[tcgwebs]

My best advice to you would be to close your site immediately and issue refunds to everyone in full. Just consider it a bad business deal and move on. That's what I did.. of course my refunds only cost me around 3k. Just take out a loan and pay it back when you are able. It's much better to do that, than to worry about possible problems in the future.

[ycchen]

Anyone knows about the current status of this matrix-site? What is the correct URL?