Tag Archives: FTC

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

NAD Refers Fungus Products to FTC and FDA

Moberg Pharma filed a NAD challenge against Kramer Laboratories, Inc. regarding the name of Kramer’s nail product. Kramer’s “Fungi-Nail Toe & Foot” product competes in the market with Moberg’s “Kerasal Fungal Nail Renewal” product.  At issue was whether the name of Kramer’s product—Fungi-Nail Toe & Foot—implies that the product effectively treats toenail fungus.  The NAD … Continue Reading

FTC Comes Down Hard on Mass-Mail Fraud Schemes

The Federal Trade Commission has issued a default judgment against David Raff, Millenium Direct Incorporated, and Ian Gamberg over charges alleging that they engaged in a mass-mail fraud scheme inducing mostly elderly consumers to pay money in order to receive a cash prize that never arrived. According to the order, announced December 18, the defendants … Continue Reading

Jason Gordon Will Deliver Free ANA Webinar on FTC Issues on January 9, 2018

Jason Gordon will be speaking on Tuesday, January 9th to the Association of National Advertisers. The free one-hour webinar, titled “The # FTC Review” will provide an update on the latest enforcement actions brought by the FTC and the types of enforcement actions the industry can expect to see from the FTC in 2018. Click … Continue Reading

CARU Refers Dave & Busters Inquiry to FTC

Last month, the Children’s Advertising Review Unit (“CARU”) referred claims by Dave & Busters Entertainment, Inc. to the Federal Trade Commission (FTC). CARU’s initial inquiry involved Dave & Busters advertising that aired during children’s programming.  The ad started with large text that stated “Free Video Game Play”, and a voiceover said “Dave & Busters has … Continue Reading

Ride Sharing App Lyft Hit With TCPA Claim Based on Marketing Partner

Lyft, Inc. was hit with a putative class action under the Telephone Consumer Protection Act (“TCPA”) this month. The plaintiffs allege that Lyft is liable for text messages sent by Jobcase, Inc., Lyft’s marketing agency. Notably, the plaintiffs believe that Jobcase sent text messages to prospective drivers on behalf of Lyft, including “Maria, START NOW: … Continue Reading

U.S. District Court Sanctions Weight-Loss Supplement Marketers for Violating Past Court Order

A judge in the Northern District of Georgia has found a number of defendants, comprising a larger company named Hi-Tech Pharmaceuticals, Inc. (“Hi-Tech”), in contempt for repeated violations of court orders prohibiting the defendants from making deceptive marketing claims about weight-loss supplements and erectile dysfunction products. As a result of the order, Hi-Tech is required … Continue Reading

FTC Issues New but Narrow COPPA Guidance on Voice Recordings

Last week, the Federal Trade Commission (“FTC”) released a policy enforcement statement to provide additional guidance under the Children’s Online Privacy Protection Act (“COPPA”) for organizations that use audio voice recordings of children. This additional guidance builds on the FTC’s 2013 updates to COPPA that brought additional data types, such as photographs, videos and audio … Continue Reading

Nominations for FTC Commissioner Vacancies Announced

The president has announced two nominations for Federal Trade Commission posts, including the chair position. Joseph Simons, who served at the agency for almost two decades and directed the Bureau of Competition from 2001 to 2003, has been nominated for the chairmanship, while Rohit Chopra of the Consumer Federation of America has also been nominated … Continue Reading

227k Consumers to Receive Refund Checks from Dietary Supplement Company Settlement

Roughly 227,000 consumers will receive an average of $43 each in an effort by the Federal Trade Commission (FTC) to send refunds to purchasers of dietary supplement products sold by Health Formulas LLC. The $9.8 million total refund is the result of a 2016 settlement with the company, its owners, and related companies, such as … Continue Reading

FTC Provided Guidance Regarding Affiliate Marketing

The FTC alerted consumers to the truth behind online advertisements connected to affiliate marketers in a September 20th blog post titled, What’s affiliate marketing? Should I Care? The FTC took action against an online marketing operation this summer over a low-cost trial scam involving tooth-whitening products. According to the FTC, many consumers remain unaware that … Continue Reading

“Pact” Health App Breaks Pact, Settles With FTC

Pact, Inc. settled charges with the FTC on September 21, 2017 that the mobile software application company engaged in deceptive acts and practices, unfair billing practices, and failure to disclose material terms relating to its Pact app. The Pact app is premised on paying members that complete health-related weekly “pacts” with funds generated by users … Continue Reading

FTC Makes New Strides in Social Media Influencer Space with Settlement, Warnings, and Guidance

This month, online gaming social media influencers Trevor Martin and Thomas Cassell settled the Federal Trade Commission’s first charges against individual failure to disclose material information in social media endorsements. Martin and Cassell are both operators of YouTube channels with millions of subscribers in the online gaming community and owners and officers of CSGOLotto, Inc., an … Continue Reading

FTC Submits Comments on Security Support for IoT Devices

The Federal Trade Commission in June submitted comments to the working group convened by the U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA), which is studying the security of Internet of Things (IoT) connected devices and how they interact with consumers. This request for comments focused on how IoT device manufacturers can effectively … Continue Reading

International Consumer Protection Agencies Will Share Intelligence About Business Practices

On June 30, 2017, the Federal Trade Commission (“FTC”) announced that the International Consumer Protection and Enforcement Network (“ICPEN”)—an international network of more than 60 consumer protection agencies—updated its website.  Although seemingly minor, this update represents ICPEN’s continued efforts to coordinate resolution of international consumer protection issues. For consumers, the ICPEN website is both informative … Continue Reading

Federal Court Enters FTC Settlement in Fake Prize Mail Scheme

Recently, a California federal court has entered into a stipulated order reflecting a settlement between the Federal Trade Commission (“FTC”) and a defendant charged with operating a mail fraud scheme. In September 2016, the FTC filed charges against Defendant Ian Gamberg and two other individuals, alleging that the group conspired to print and mail false … Continue Reading
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