Source: United States Senator for California – Dianne Feinstein
Washington—Senator Dianne Feinstein (D-Calif.) today praised the Federal Trade Commission for its investigation of potentially deceptive business practices by the BurgerIM fast food franchise and its founder, Oren Loni.
That investigation led the Justice Department this week to file a civil lawsuit against the company alleging that it oversold franchises to inexperienced investors, including the targeting of veterans, and refused to fulfill refunds the company promised.
Feinstein in February 2020 called for an investigation of BurgerIM after multiple complaints were filed against the company. Her letter to the FTC is available here.
“I’m pleased to hear the Justice Department has filed a civil lawsuit against the BurgerIM fast food franchise,” Feinstein said.
“I called on the FTC in 2020 to investigate BurgerIM – which then had about 150 franchise locations in California – for potentially unfair and deceptive practices. At the time, the company had more than a dozen formal complaints filed against it for untrue material statements or omitting necessary material facts to prospective franchisees.
“It has been alleged that many Californians were harmed due to the company’s alleged poor management, including false or misleading sales tactics and offers to refund franchise fees that were never fulfilled. I join the FTC today in thanking the California Department of Financial Protection and Innovation for its assistance in the case.
“When companies employ abusive tactics to take advantage of prospective operators, there must be consequences. I am hopeful this lawsuit will bring some measure of aid to the many who were allegedly harmed by this company.”
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