If It Sounds Too Good To Be True . . . Well, Just Ask Them

If it sounds too good to be true, it probably is.

Just ask Geraldine Atkinson of Everett. Or Vance High of Mill Creek.

Atkinson figures she spent $15,000 to $18,000 in savings, and charged several thousand more dollars to her credit cards, to become involved as a "manager" for Equinox International Corp., a multi-level marketing organization. Equinox, of Las Vegas, Nev., sells distributorships, health and beauty products and water filters.

Atkinson, who had worked in the home-building industry, was looking for a career change. She responded to an advertisement for "help wanted - management" and attended sessions about Equinox.

High, a schoolteacher on medical leave who has multiple sclerosis, had worked in multi-level marketing and sales, and was interested in Equinox.

"They had such a big nice, plush office, I thought that a company with an office like that must be doing well," Atkinson said. Additionally she was shown sizable checks of thousands of dollars that were purported to be monthly earnings of others involved.

Atkinson acknowledges she did not check out Equinox with any regulatory agencies, or the Better Business Bureau.

The idea was to recruit others as distributors, then earn money based on what those distributors bought and sold, as well as what she could sell, Atkinson said.

Atkinson was persuaded by a local director to go to Kansas City to open an office. But after five months there, she returned to the Pacific Northwest after she realized that the office in Kansas City was not working out.

"Between that and buying products and training materials, I figure I lost $25,000," she said.

When Atkinson tried to return unsold products under Equinox's refund policy, she was told the items were over a year old, not in the original packaging and did not have current labels. As a result, she was told, she wasn't eligible for a refund.

"They were just using me because they knew I had money," Atkinson believes.

High didn't make a profit, but has recovered all but about $300 of the $4,461 he invested. He said it was difficult to sell many of the products that Equinox shipped to him.

Several of the products were touted as aphrodisiacs, some as cures for health problems, including multiple sclerosis, but no documentation was ever provided, High said.

Some of the products he received were overpriced cosmetics, items he hadn't expected, High said.

Later, High said he tried to utilize Equinox's return policy for distributors. At first Equinox said it couldn't find any records to document that he was a distributor, High said.

After a lot of paperwork and hassles, Equinox sent him a check for $1,800, but said he could cash it only if he agreed to sign an affidavit saying he would not to sue or take other action against the company. He signed, so he could cash the check, but added a statement that he refused to waive his legal rights. Later he was able to get more of his money back.

One of the problems in dealing with Equinox, High said, was that distributors often used other business names, so it was difficult to determine with whom one was dealing.

High and Alexander are two of 64 Washington residents who complained to the attorney general about Equinox's operations.

Now Equinox has signed an assurance of discontinuance with attorneys general from Washington, Texas, Florida, Illinois, Michigan, Ohio, North Dakota, Alabama, Wisconsin, Missouri, Nebraska, Nevada, Pennsylvania and New Mexico.

The agreement requires Equinox to substantiate all claims of profit and product performance in advertising aimed at distributors.

Under the agreement Equinox admitted to no wrongdoing and no violations of the law, but agreed to:

-- Clarify to potential distributors that there are no guarantees of success.

-- Refrain from misrepresenting income and profit levels of distributors.

-- Clarify that Equinox is a business opportunity, not employment.

-- Refund 100 percent on products if distributorship is canceled within five days of purchase.

-- Limit initial purchase by a distributor to $5,000.

-- Require proof of sale of at least 70 percent of the $5,000 in products before a distributor can purchase a second $5,000 in products.

Sue Stitt, a spokeswoman for Equinox, said the company had been enforcing those requirements in its 4 1/2 years of operation. Equinox has more than 100,000 distributors nationwide, Stitt said.

"There are some people who succeed in business and some who don't. But people don't reflect on themselves when they fail; they reflect on the opportunity," Stitt said.

A group of consumers has filed a civil action against Equinox in Yakima County, charging misrepresentations of employment and income and fraudulent conduct.

For more information on multi-level marketing or to file a complaint, call the Washington attorney general's office, (800) 551-4656, or visit the agency's Web site at http://www.wa.gov/.ago

Shelby Gilje's Troubleshooter column appears Wednesday and Sunday in the Scene section of The Times. Write to Times Troubleshooter, P.O. Box 70, Seattle, WA 98111. Phone, 464-2262, fax 382-8873, or e-mail address, sgil-new@seatimes.com

------------ CASES CLOSED ------------

L. and T.C., Poulsbo, Kitsap County: You have the van now and Used Car Super Stores says you have paid in full.

R.C.B., Northeast Seattle: Thanks for letting us know that both stores about which you complained have properly marked and installed signs for parking for the handicapped. The Washington State Law Against Discrimination makes it an unfair practice for a place of public accommodation to fail to maintain the accessibility features that were required when it was built or renovated. If you encounter similar situations, complain to the Washington State Human Rights Commission or file a civil suit.

L.B., Maple Valley: You complained about a "night from hell" in the Super 8 Motel franchise in Killeen, Texas. Now Super 8 Motels Guest Services will refund your money and also has offered you a complimentary night's stay at one of its hotels in the United States or Canada.

E.B.J., Renton: United Research Center of Manchester, N.H., says the remainder of your $65.95 order for the Svelt Patch weight loss product is on its way.

L.L., South Seattle: Thanks for letting us know that All Pro Heating & Air has made the necessary repair.

M.M.N., West Seattle: Hampton Marketing of Medford, N.Y., says you'll receive a discount coupon to use toward another order.

C.B., Hansville, Kitsap County: You complained about excessive phone charges when your mother called you collect from Mexico. Glad to learn OAN Services, the long-distance carrier of Van Nuys, Calif., has discounted the bill.

C.K., Seattle: The dentist says the correct charge is $525.

W.J.B., North Seattle: T & T Instant Plumbing has refunded $110.50, representing the sum you overpaid for a repair job.

R.C.S., Issaquah: Care Medical Equipment has refunded the restocking fee you paid when you returned the lift chair that didn't work for you.

B.R., Edmonds: Glad to learn you got the matching Parker Jotter pencil that was offered when you bought a pen.

D. and S.M., Everett: Vacation America of Davie, Fla., has refunded the $25 deposit you paid for a three-day stay after attending a sales presentation by Platinum Passport.