The Federal Trade Commission announced it has sent letters warning 20 more marketers nationwide to stop making unsubstantiated claims that their products and therapies can prevent or treat COVID-19, the disease caused by the novel coronavirus. This is the eighth set of warning letters the FTC has announced as part of its ongoing efforts to […]
Category Archives: Federal Trade Commission
FTC Adds Charges Against Auto Marketer For Deceptive “Prize” Mailers
The Federal Trade Commission has issued an administrative complaint against a marketer, Traffic Jam Events, LLC, and its owner, David J. Jeansonne II, charging multiple counts of deceptive conduct. The administrative complaint mirrors a prior federal court complaint, which the Commission voluntarily dismissed to pursue a broader administrative proceeding. The administrative complaint alleges that the respondents […]
FTC Sends Refunds Totaling More Than $9.1 Million to Customers Defrauded by Deceptively Marketed “Amazing Wealth System”
The Federal Trade Commission is mailing checks and sending PayPal payments totaling more than $9.1 million to customers who paid for an “Amazing Wealth System” workshop. According to the lawsuit brought by the FTC, the defendants, FBA Stores and related companies and individuals, falsely claimed their “Amazing Wealth System” would enable people to create a […]
FTC Testifies At an Oversight Hearing before the Senate Commerce Committee
The Federal Trade Commission testified today at an oversight hearing before the Senate Committee on Commerce, Science, and Transportation about the agency’s work to protect consumers and promote competition, including its efforts to combat frauds designed to take advantage of consumers during the COVID-19 pandemic. Testifying on behalf of the Commission, FTC Chairman Joseph Simons […]
FTC Acts Against Online Sellers That Falsely Promised Fast Delivery of Facemasks and Other Personal Protective Equipment
The Federal Trade Commission filed suit against three online merchandisers for failing to deliver on promises that they could quickly ship products like face masks, sanitizer, and other personal protective equipment (PPE) related to the coronavirus pandemic. The lawsuits allege that the companies violated the FTC’s Mail, Internet and Telephone Order Rule (Mail Order Rule), […]
FTC Alleges Merchant Cash Advance Provider Overcharged Small Businesses Millions
A leading provider of merchant cash advances used deception to lure small business customers, then regularly withdrew money from their accounts without consent even after the customers had repaid the money they owed, according to a Federal Trade Commission lawsuit. The FTC’s complaint against Yellowstone Capital, Fundry, founder and CEO Yitzhak Stern, and president Jeffrey Reece, […]
FTC Sues California Marketer of $23,000 COVID-19 “Treatment” Plan
The Federal Trade Commission charged a California-based company called Golden Sunrise Nutraceutical, Inc. with deceptively advertising a $23,000 treatment plan as a scientifically proven way to treat COVID-19, the disease caused by coronavirus. According to the FTC’s complaint, Golden Sunrise began marketing its Emergency D-Virus plan as a treatment for COVID-19 in March 2020. Advertising […]
FTC Announces Staff Reports on Car Buying and Financing Experience, Results of Auto Buyers Study
Two new staff reports from the Federal Trade Commission highlight some of the challenges and confusion consumers can face in buying and financing a car, particularly relating to charges for add-on items after the initial price negotiation that can lead to them paying more than expected. The reports are based, in part, on a study […]
FTC Acts to Stop Deceptive Insulation and Energy-Savings Claims
The Federal Trade Commission sued four companies that sell paint products used to coat buildings and homes, alleging that they deceived consumers about their products’ insulation and energy-savings capabilities. In complaints filed in federal court, the FTC charged that the companies falsely overstated the R-value ratings of the coatings, making deceptive statements about heat flow […]
FTC Alleges California Purveyor of Background Reports Misled Consumers To Think its Reports on Individuals Might Contain Criminal and Other Records
The Department of Justice on behalf of the Federal Trade Commission sued a California-based purveyor of background reports, alleging that the company has deceived consumers with “teaser background reports” that often falsely claimed to include information about arrest, criminal, and sex offender records, and also engaged in misleading billing and marketing practices. According to a […]