Case Description

My wife and I live in Ontario. In the spring of 2006 we purchased a distributorship for pre-paid phone cards from Company X based in B.C. The business seemed like a good idea at the time and it involved the distribution and supply of pre-paid phone cards to convenience stores and other retail outlets. We had the option of distribution rights to the Toronto area. Phone cards were ubiquitous so it seemed like a good retirement business venture for my wife and I. There were various levels of distributorship available from level one (approx. $7000 for 7 machines) up to the master’s level. We paid over $40, 000 for a master’s level distributorship with 25 dispensing machines. My wife and I had endless problems with Company X right from the beginning. In a nutshell the business did not work because the concept was ill-conceived and poorly prepared by the company. In hindsight, that my wife and I we were headed for failure was no surprise given the support we had from the company. Other phone card companies had a far better product. Worst of all my wife and I contend that the solicitations made to us by various company officials before we signed up were false and misleading.
The money that we used to finance our ill-fated business venture came from our retirement funds. With that in mind my wife attempted to retrieve the money from Company X. She made many phone calls to the company. She gave up trying to get back the money. We made complaints to the BBB and to the Competitions Bureau of Canada to no avail. We believe that hundreds of others were taken in by this scam.
I have tried and failed to find out if others have been affected by this scheme. I asked the BBB to give me the contact information of other complainants on the BBB website. They declined. I then tried to have them give my name and contact information to the other complainants. They declined this as well. I am unsure whether there are any court cases in BC against Company X. Several lawyers have looked at our Distibutors Agreement and told us we don't stand a chance. Company X is repeating the scam with others and getting away with it! As we are financially challenged and don't have money for retainers and litigation we need a BC lawyer who would take the case on a contingency or class action basis.