G7 Enforces Federal Trade Commission Restraints of Consumers and Businesses with Checking Accounts

SAN DIEGO--()--G7 Productivity Systems (“G7”) announces that a US District Court Order, issued on demand of the Federal Trade Commission (“FTC”), restrains financial account holders in connection with creating or delivering checks or drafts. The San Diego District Court, confirmed by the Ninth Circuit Court of Appeals, has ruled accordingly in connection with Case No. 06-CV-1952 JLS (JMA), Southern District. G7 has been mandated to deny consumers access to means and tools that assist in creating or delivering checks unless those checks are drawn on bank accounts with verified legitimacy and validated account holder authority.

Background:

The FTC’s activity related to this case began in September 2006 with claims against an Internet-based paper check printing and delivery service called Qchex, which was using G7 products and services in connection with check creation. Some unknown users abused Qchex and printed invalid and fraudulent checks. Based on the FTC’s demand, which was prompted by several consumer complaints, the San Diego district court ruled and mandated G7 to enforce new FTC restrictions on bank account holders.

The FTC is demanding a broad scope and interpretation of the ruling. The order restrains “any customer or prospect” from creating checks, unless certain verification procedures are performed. The affected enabling products and service categories include but are not limited to: check paper, magnetic ink, magnetic toner, check writing software and accounting applications, laser and inkjet printers and any other tool or service used in connection with check creation or delivery on behalf of a customer. Existing and prospective checking account holders in the US are compelled to validate bank account control and verify identity through G7 referred 3rd parties prior to using any of the enabling products and services. G7 and parties acting in concert, such as retailers, competitors, financial service providers, end-users, publishers and manufacturers of any tools or method assisting users in performing check creation and delivery tasks are collectively enjoined and must implement the court’s ruling.

G7 refers www.gvalidate.com as a trusted 3rd party for protected validation of account control and bank assisted identity verification to comply and cure user contempt promptly. In order to integrate with gValidate’s safeguards, users are encouraged to up-convert to VersaCheck X1 – a new highly secure 3rd party check creation solution based on DNA Secure™ check technology. VersaCheck X1 safeguards its users from check fraud, provides real-time electronic transaction alerts and online check verification - free. DNA Secure™ VersaCheck X1 software is available at www.versacheck.com. To visually differentiate DNA Secure™ checks and alert check recipients of available security measures online, VersaCheck X1 also displays non-erasable contact information and instructions on each DNA Secure™ check to enable online verification of account validation status, assist in dispute enforcement and prevent unauthorized check payments and losses. The new system makes payments by checks highly protected and helps safeguard consumers and businesses from the impact of unauthorized check creation or delivery.

The public may pursue an official inquiry with the FTC for clarification on the scope of its enforcement regarding the subject court ruling, which may have direct impact on consumer rights. Please use www.g7ps.com/FTC-Official-Inquiry-2 as a resource to file your request for an official response.

About G7:

G7 Productivity Systems, Inc., based in San Diego, CA, over the course of over 10 years has earned a reputation as a leading publisher and manufacturer of productivity software and supplies for both home and business use. G7's products were distributed to over 4,000 retail outlets in the US and Canada. G7 is known for business automation solutions that enhance productivity while reducing costs. G7 products and services assist users to run their businesses, automate finances, create and deliver checks and forms, capture data, manage customer relationships, automate sales, human resources, accounting, and e-commerce.

Contacts

G7 Productivity Systems, Inc.
Sarah Cox, 619-630-5584
support@g7productivity.com

Contacts

G7 Productivity Systems, Inc.
Sarah Cox, 619-630-5584
support@g7productivity.com