Devumi, LLC (“Devumi”) and its owner and CEO, German Calas, Jr. (“Calas”) have agreed to settle the Federal Trade Commission’s (“FTC”) complaint alleging that Devumi and Calas engaged in deceptive online marketing tactics in violation of the FTC Act. In this first-ever type of complaint, the FTC alleges that Devumi and Calas sold fake indicators
David A. Smith
FTC Continues Enforcement Actions To Stop Deceptive Free-Trial And Negative Option Schemes
The Federal Trade Commission (“FTC”) recently filed another case in a series of recent enforcement actions targeting allegedly deceptive online “free-trial” offers that tricked consumers into enrolling in negative option plans.
The FTC charged Gopalkrishna Pai and eight (8) companies he owns and operates as a common enterprise with violating the FTC Act and the…
FTC Stops Fake Job Opportunity And Resume Repair Operation
The Federal Trade Commission (“FTC”) recently charged two companies, Worldwide Executive Job Search Solutions, LLC and PrivateEquityHeadhunters.com and their owner Craig Chrest with violating the FTC Act and the FTC’s Telemarketing Sales Rule and swindling hundreds of thousands of dollars annually from consumers for fake job placement and resume repair services. At the FTC’s request…
NAD Refers Advertising Claims Made By Mattress Maker To FTC
The National Advertising Division of the Better Business Bureau (“NAD”), the investigative unit of the advertising industry’s system of self-regulation, recently referred advertising claims made by Nectar Sleep, LLC for its Nectar Mattress to the Federal Trade Commission (“FTC”) after Nectar Sleep failed to respond to the NAD’s request to provide substantiation for its claims.…
Federal Court Tosses False Advertising Suit Against Trader Joe’s Alkaline Water
A California federal court granted Trader Joe’s motion to dismiss a false advertising lawsuit with regards to Trader Joe’s alkaline water, finding that all but one of plaintiff’s claims were non-actionable puffery, and granting plaintiff leave to amend the single remaining claim. Plaintiff alleged that Trader Joe’s alkaline water product labelling, which included numerous plus…
Federal Court Tosses TCPA Suit Over Hotel Booking Text Messages
A California federal court granted Singapore-based hotel booking firm Agoda Company Pte. Ltd.’s (“Agoda”) motion for summary judgment in a case involving alleged violations of the Telephone Consumer Protection Act (“TCPA”). The plaintiff alleged that the confirmation text he received after booking travel on Agoda’s website [“Good news! Your Agoda booking [number] is confirmed.
Federal Court Tosses False Advertising Suit Over Angie’s List Rankings
A Kansas federal court granted Angie’s List’s motion to dismiss a class action lawsuit alleging false advertising, finding that most of plaintiff’s claims were time-barred and the rest were not properly pled. The owner of a tree trimming business spent over $200,000 in advertising on Angie’s List from 2005 and 2013. According to the plaintiff,…
Five Companies Settle Privacy Case With NY AG Over Apps
The New York Attorney General settled cases with five companies – Equifax, Western Union, Priceline.com, Spark Network and Credit Sesame – for having mobile apps that failed to keep sensitive user data secure when transmitted over the Internet. The companies’ mobile apps suffered from a well-known security vulnerability that could have allowed hackers to intercept…
Vegan Cookie Company Settles Deceptive Nutrition Label Suit For $5 Million
Vegan cookie company, Lenny & Larry’s Inc., has reached a $5 million settlement with a proposed class of consumers who accused the company of misstating the nutritional value of its “Complete Cookie.” The proposed class action plaintiffs alleged that the Complete Cookie’s label violated the federal Food, Drug and Cosmetic Act and a variety of…
Sport Supplement Company and Consumers Settle Deceptive Label Suit
Dietary supplement manufacturer PhD Fitness LLC (“PhD Fitness”) and a putative class of consumers have reached a settlement over claims that PhD Fitness deceptively labelled its sports supplements. The plaintiffs filed the proposed class action alleging that the marketing materials and labels on PhD Fitness’ “JYM” and “Post-JYM” supplements made false and misleading claims about…