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Report: #35687

Complaint Review: iMergent dba StoresOnLine - Orem Utah

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  • Reported By: Las Vegas NV
  • Author Not Confirmed What's this?
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  • iMergent dba StoresOnLine 754 E. Technology Ave Orem, Utah U.S.A.

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After attending a web marketing seminar by StoresOnLine I purchased a merchant's package including software licenses to build six websites, on-going support, reduced hosting fees, and the set up of a merchant's account to process credit cards online.

In the seminar they did not mention several key factors that would certainly have negated my decision to buy:
(1) in order to have my own stand alone domain name, I would have to pay StoresOnLine a setup fee and than a monthly hosting fee. If I did not wish to pay these extras, the website would be www.StoresOnLine\my website\my product.

(2) StoresOnLine holds the completed websites hostage. Even if you choose to have the site hosted by a different ISP, you cannot physically relocate the website to that provider because it cannot be extracated from the propriatary software. Instead StoresOnLine will link to the ISP you've chosen. This guarantees problems if iMergent's shakey business, already in financial trouble, fails. And it also creates search engine problems, since the primary search engines down grade linked sites.

During my in-depth long investigation into the various companies that make up the conglomerate, I discovered that since October 2002 they have been selling software licenses through out the country without collecting and remitting sales tax to the various states. I estimate that they owe more than $4million dollars in unpaid sales taxes and penalties--and since at 9/30/02 their bank account balance was $163,000 this just might be the problem that puts them out of business. I have happily informed the various states of their disregard for their sales tax responsibility and now will just wait to see what happens.

Chris
Las Vegas, Nevada

This report was posted on Ripoff Report on 11/19/2002 04:55 PM and is a permanent record located here: https://www.ripoffreport.com/reports/imergent-dba-storesonline/orem-utah-84097/imergent-dba-storesonline-deceptive-business-practice-misrepresents-software-license-fraud-35687. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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REBUTTALS & REPLIES:
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#2 Consumer Comment

Sales tax rebuttal is absolute false

AUTHOR: Crhis - (U.S.A.)

POSTED: Friday, February 07, 2003

All states require registration and or licensing of companies that do more than casual business within their state--casual business is defined as less than around 20 sales per year.

iMergent and its subsidiaries, StoresOnLine and Galaxy Malls, have a long business history of swooping into a state without going through the registration/licensing process, selling as much as they can, and then not returning for several months.

Jake needs to get his sales tax information straight because it is untrue.

Sales tax is chargable at the point of sale and has nothing to do with the home office of the seller. If you sell in Nevada, then you collect and remit Nevada sales tax, if you sell in Florida, you collect and remit Florida sales tax, etc.

Since the switch in the fall of 2001 from selling a service (custom programmed websites, which is non-taxable, to selling a product(software usage licenses), which is taxable, StoresOnLine has not collected and remitted sales tax for millions of dollars of sales.

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#1 Consumer Suggestion

Take Care of Your own Business

AUTHOR: jake - ()

POSTED: Wednesday, December 04, 2002

If you spent as much time working on your own website as you do worrying about scewed notions of sales tax, you would soon discover that when you run a business that crosses state lines you only collect sales tax in the state where the business is registered to assess the tax.

Remember this next time you buy jewelry. Have your jeweler send the items out of state and you will avoid paying sales tax.

Also, Stores online explicitly discusses the services and fees - three times during the seminar.

If you were unclear about virual hosting, you should call customer service. Search engines are where you should focus your engergy. This is how I found you, After all.

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