Matterport “Business Opportunity” and State Requirements Class Action

The sale of “business opportunities” are sometimes called “seller-assisted marketing plans” in state laws. This class action bring suit against Matterport, Inc. and seven of its individual business directors for advertising and selling supposedly lucrative business opportunities in the 3D camera industry which did not offer sufficient disclosures.

Matterport makes 3D cameras that generate models of real-world places, which are useful, for example, in real estate sales. It runs what it calls a Matterport Service Partner (MSP) program which offers supposed business opportunities to the general public and claims to provide filtered local leads and support to the recruited MSPs.

The complaint quotes Matterport’s website as saying, “Pre-qualified local leads seeking 3D scanning services is a benefit of our MSP program. We match Matterport Service Partners on local proximity to leads who come in requesting a scan service. We’ve created the necessary resources and materials you need to sell Matterport on your own and generate business too!”

MSPs must make an investment to join. The complaint alleges that Matterport promises MSPs filtered leads located three to thirty miles from them that would pay for the initial investment in six months. However, the complaint claims that Matterport’s offering omits certain kinds of disclosures and other requirements of the law in at least twenty different states.

Plaintiff John Stemmelin answered a Matterport solicitation in January 2017. In February, he bought a 3D Pro camera for $3,875.27, and in May a Pro2 for $4,292.49. That month, he applied for the MSP program.

In order to process the images from the cameras, he was required to pay a monthly fee for Matterport’s Cloud Service Plan, which the complaint says “includes data storage and software for cloud processing, post-production tour creation, and syndication to interactive online technology, such as Multiple Listing Service … used by relators, and Google Street View.” This started out at roughly $49 per month but rose in 2018 to $99 per month. His investment by now has added up to over $22,000.

Although he was promised local leads, Matterport gave the same leads to others, saturating his area with sales. Furthermore, Matterport itself was selling in the area, directly competing with its MSPs and, the complaint says, “offering to provide scans at a fraction of the cost that would otherwise be borne by MSPs[,]” thus turning MSPs into “just free marketers and promoters” for Matterport.

Stemmelin has been unable to recoup his costs or make money as an MSP.

The class for this action is all persons who, within the applicable statute of limitations, bought Matterport’s Pro, Pro2, or Pro2 Lite 3D cameras and Matterport’s Cloud Service Plan and became an MSP in one of the following states or jurisdictions: Alaska, Connecticut, Florida, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Michigan, Minnesota, Nebraska, North Carolina, Ohio, Oklahoma, South Carolina, South Dakota, Texas, Virginia, Washington, or Washington DC.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Matterport “Business Opportunity” and State Requirements Complaint

June 24, 2020

The sale of “business opportunities” are sometimes called “seller-assisted marketing plans” in state laws. This class action bring suit against Matterport, Inc. and seven of its individual business directors for advertising and selling supposedly lucrative business opportunities in the 3D camera industry which did not offer sufficient disclosures.

Matterport “Business Opportunity” and State Requirements Complaint

Case Event History

Matterport “Business Opportunity” and State Requirements Complaint

June 24, 2020

The sale of “business opportunities” are sometimes called “seller-assisted marketing plans” in state laws. This class action bring suit against Matterport, Inc. and seven of its individual business directors for advertising and selling supposedly lucrative business opportunities in the 3D camera industry which did not offer sufficient disclosures.

Matterport “Business Opportunity” and State Requirements Complaint
Tags: Business Opportunity, Did Not Make/Receive Proper Disclosures