Tag Archives: FTC

FTC Releases Guidance for Influencers

On Tuesday, the FTC released a set of guidelines for online influencers dictating when and how influencers must disclose sponsorships to their followers. The guidelines, available here, break down disclosure requirements and provide tips for influencers on how to avoid deceptive advertising. In general, the guidelines largely reflect what the industry has gleaned from FTC … Continue Reading

Website and Its Operator Settle FTC Charges They Sold Fake Indicators of Social Media Influence

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 … Continue Reading

Internet Marketers Settle FTC Allegations They Deceived Consumers With False Claims of Free Trial Offers and Unauthorized Continuity Plans

Apex Capital Group, LLC – including its two principals Philip Peikos and David Barnett – and the twelve (12) entities it controlled (collectively, “Apex Capital”) have agreed to two separate court orders settling the Federal Trade Commission’s (“FTC”) allegations related to Apex Capital’s operation of a multi-national scheme to defraud consumers through free trial and … Continue Reading

FTC and state law enforcement officials announce initiative targeting illegal telemarketing

The Federal Trade Commission (FTC) announced a joint state-and-federal initiative, “Operation Call It Quits,” which targets illegal telemarketing practices that violate the FTC’s Telemarketing Sales Rule (TSR). The TSR, which applies to interstate telephonic marketing communications intended to “induce the purchase of goods or services or a charitable contribution,” makes it illegal to engage in “abusive” acts and practices … Continue Reading

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 … Continue Reading

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 … Continue Reading

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. … Continue Reading

Zika Repellent Could Not Keep Away FTC

PR firm Creaxion Corporation and Inside Publications, LLC settled with the Federal Trade Commission (FTC) this week regarding promotional practices for Creaxion’s mosquito repellent. In its complaint, the FTC alleged that Creaxion planned a media campaign around its launch of the mosquito repellent during the Zika virus outbreak tied to the 2016 Summer Olympics. They … Continue Reading

430,000 Consumers to Receive Refund Checks from Prepaid Debit Card Company Settlement

Over 430,000 consumers, who purchased and deposited money on NetSpend Corporation (“NetSpend”) prepaid debit cards will receive refund checks from the Federal Trade Commission (“FTC”), totalling more than $10,000,000 as part of NetSpend’s settlement with the FTC. In November 2016, the FTC charged NetSpend with violations of the FTC Act alleging NetSpend deceptively advertised that: … Continue Reading

FTC Takes Action against “iV Cocktails”

Last week, the FTC brought its first action against a company marketing and selling intravenously injected therapy products, or “iV Cocktails” as they are often called. In its Press Release, the FTC announced that it reached a settlement with A&O Enterprises Inc., d/b/a iV Bars, and its individual owner/operator, that prohibits iV Bars from making … Continue Reading

FTC Approves Final Revisions to Jewelry Guides

The Federal Trade Commission (“FTC”) recently approved final revisions to its Jewelry Guides (formally, the “Guides for the Jewelry, Precious Metals, and Pewter Industries,” the “Guides”), aimed at helping prevent deception in jewelry marketing. Based on the overall record of FTC review over the past six (6) years, the FTC has approved revisions to the … Continue Reading

Hat Makers Marketed Made-Up “Made In America” Claims, FTC Says

In January of this year, the FTC announced its complaint against the Bollman Hat Company and its wholly-owned subsidiary, SaveAnAmericanJob, LLC, for allegedly violating its policy on “Made in the USA” claims. Bollman and its subsidiary, which sells hats under the Bollman, Bailey Western, Betmar, Country Gentleman, Eddy Bros., Helen Kaminski, Jacaru, Kaminski XY, Kangol, … Continue Reading

Defendants Reach Settlement with FTC Over Deceptive Get-Rich-Quick Scheme

Operators of a get-rich-quick scheme have agreed to a permanent ban on the marketing or selling of certain types of software as part of a settlement with the Federal Trade Commission (“FTC”) over allegations that the defendants deceived consumers by falsely claiming consumers could earn large sums of money working online utilizing the defendant’s products. … Continue Reading

FTC Targets Risky “Free” Trials and Negative Option Plans in Complaint Against Marketers

The Federal Trade Commission (FTC) has been granted a temporary restraining order barring several online marketers from engaging in allegedly deceptive sales practices in violation of the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA). The FTC’s complaint against Triangle Media Corporation, Jasper Rain Marketing LLC, Hardwire Interactive Inc., and Brian Phillips, the … Continue Reading

Preparing for the Next Phase of Influencer Marketing – The CGI Influencer

Social media influencers are constantly competing for likes, partnerships, and ways to differentiate themselves from others. A surefire way to distinguish oneself in the ever-growing sea of social influencers? Being a robot. Computer generated social media influencers like Lil’ Miquela and Shudu have racked up millions of Instagram followers and likes and have secured several … Continue Reading

FTC Stops Another Deceptive Work-From–Home Business Coaching Scheme

The Federal Trade Commission (“FTC”) recently charged two Utah individuals and their telemarketing operation with violating the FTC Act and the FTC’s Telemarketing Sales Rule by deceptively claiming that their business coaching services could help consumers start home-based businesses that could earn thousands of dollars a month. According to the FTC, the defendants targeted consumers … Continue Reading

Mobile Phone Maker Reaches Settlement with FTC Over Deceptive Privacy and Data Security Claims

Mobile phone manufacturer Blue Products, Inc. and its co-owner and President, Samuel Ohev-Zion (collectively, “BLU”), reached a settlement with the Federal Trade Commission (“FTC”) over allegations that BLU misled consumers by allowing a China-based third party to collect detailed personal information about consumers.  The FTC alleged that the Chinese entity collected U.S. consumers text message … Continue Reading

YouTube Accused of Violating COPPA in FTC Petition

Parking your child with a tablet and the LittleBabyBum YouTube channel may not be as kid-friendly as it seems, a group of consumer advocacy groups told the Federal Trade Commission in April. More than 20 groups, including the Electronic Privacy Information Center, Public Citizen, and the Consumer Federation of America, asked the FTC to investigate … Continue Reading

FTC Sends Warning Letters to Companies Over Warranty Claims

Earlier this week, the Federal Trade Commission (“FTC”) sent warning letters to six (6) major companies that market and sell automobiles, cellular devices, and video gaming systems. The FTC indicated that it has concerns about the companies’ statements that consumers must use specified providers to keep their warranties intact. Unless warrantors provide the parts or … Continue Reading

Company Settles Credit Card Laundering Scheme With FTC

Last month, the FTC announced a $1,384,500 settlement with Michael Abdelmesseh and KMA Merchant Services, LLC in a lawsuit regarding a deceptive credit card laundering scheme. The FTC alleged that the defendants telemarketed fraudulent business opportunities to consumers that involved false promises of thousands of dollars in income as commission for loans made to small … Continue Reading

Telemarketing Giant to Pay $250,000 Penalty to FTC

InfoCision, Inc., an Akron, Ohio-based company, agreed last month to pay a $250,000 civil penalty and implement recordkeeping and monitoring practices to settle Federal Trade Commission (“FTC”) charges brought by the Department of Justice on the FTC’s behalf. The FTC alleged that since at least 2013 InfoCision conducted hundreds of telemarketing campaigns on behalf of … Continue Reading

FTC Settles With Hotel Room Resellers Over Alleged Misrepresentations

Reservation Counter, LLC and its parents companies have settled Federal Trade Commission charges that they misrepresented hotel bookings and credit card charges to consumers. The proposed order bars the defendants from future conduct including leading consumers to believe incorrectly that they are communicating directly with hotels to book rooms. As a result, the defendants may … Continue Reading

Maine Supplements FTC Weight-Loss Enforcement Action

Marketing Architects, Inc. (“MAI”), an advertising agency specializing in direct response radio and television ads, will pay $2 million in equitable relief to the Federal Trade Commission (“FTC”) and the Office of the Attorney General of Maine for allegedly creating and disseminating deceptive radio ads for weight-loss products AF Plus and Final Trim. The joint … Continue Reading
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