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BRIEFLY

December 22, 1987

The U.S. District Court in Arizona has ordered a halt to a sales scheme in which companies misled people into buying into a cleaning fluid company and then encouraged them to recruit other investors, the Federal Trade Commission said. According to court papers, Phoenix-based Rainbow Enzymes and related firms recruited customers to pay $3,000 to serve as licensed sub-manufacturers of Rainbow Connection, a cleaning fluid. The product turned out not to be a cleaning product, the court reported. But licensees were offered a fee to recruit others to make it, with the money coming from the payments of the new participants, the court said.

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