Orem eCommerce firm iMergent Inc. and its affiliate StoresOnline Inc. are again allowed to do business in North Carolina after they agreed to change their sales tactics and pay $90,000 in restitution to affected consumers.

iMergent, which last year was barred from doing business in North Carolina -- one of its key markets -- after allegedly failing to live up to its claims that it could help people set up successful online businesses, struck a settlement Wednesday with the North Carolina Attorney General's Office.

Attorney General Roy Cooper, who said the company misrepresented how easy it was to launch a business using iMergent software, has so far obtained more than $265,000 in refunds for North Carolina consumers in addition to the $90,000 the company agreed to pay.

The settlement resolves claims filed last year by the North Carolina AG's office alleging iMergent violated consumer protection statutes.

It had also alleged the company sold a business opportunity, and therefore had to register with the state in order to conduct those sales.

Under terms of the deal, iMergent does not admit wrongdoing.

Wednesday's settlement is particularly significant for iMergent. Lower-than-expected sales and an inability to do business in both North Carolina as well as California last year had resulted in one-fifth of iMergent's total work force being laid off in December. Earning from the two states account for about 15 percent of iMergent's total revenues. The company is still barred from doing business in California.

According to the North Carolina AG's office, StoresOnline and iMergent claimed to help people choose a product to sell on the Internet, set up a Web site for the business and then market the product.

The companies' promotional mailings claimed that previous customers had used their services to start businesses that earned thousands of dollars a month and up to $280,000 a year. iMergent and StoresOnline pitched their products and services as easy to use and set up, even if consumers had little or no computer experience.

The AG's office said the company held sales presentations or workshops urging consumers to sign up for the service for $2,700 for three Web sites or $5,900 for six Web sites, plus a monthly hosting fee of $24.95 per Web site.

Now, under terms of a pending deal to be approved by North Carolina Business Court Judge Ben F. Tennille, the companies will be required to make it clear that individuals who offer testimonials about their services were paid to do so.

To clarify its business practices, iMergent and StoresOnline will be required to fully inform consumers about the requirements to use their products and services such as owning a computer, having an Internet connection, access to a product to sell and access to an e-mail account and having moderate technical computer skills.

They are also required to inform consumers about their refund policy and of their three-day right to cancel the service.

The cancellation policy is extended to 15 days for consumers over the age of 65.

"Companies that claim to help people start a business need to live up to their promises," Cooper said in a written statement. "If not, they should expect to hear from my office."