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FTC Action Halts Payday Loan Scheme That Bilked Tens of Millions From Consumers By Trapping Them Into Supposed “Loans” They Never Authorized

At the Federal Trade Commission’s request, a U.S. district court in Missouri has temporarily halted an online payday lending scheme that allegedly bilked consumers out of tens of millions of dollars by trapping them into loans they never authorized and then using the supposed “loans” as a pretext to take money from their bank accounts.

The court imposed a temporary restraining order that appoints a receiver to take over the operation. The court order gives the FTC and the receiver immediate access to the companies’ premises and documents, and freezes their assets.

“These defendants bought consumers’ personal information, made unauthorized payday loans, and then helped themselves to consumers’ bank accounts without their authorization,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “This egregious misuse of consumers’ financial information has caused significant injury, especially for consumers already struggling to make ends meet. The Federal Trade Commission will continue to use every enforcement tool to stop these unlawful and harmful practices.”

Over one eleven-month period between 2012 and 2013, the defendants issued $28 million in payday “loans” to consumers, and, in return, extracted more than $46.5 million from their bank accounts, the FTC alleged.

In its complaint, the FTC alleges that Timothy Coppinger, Frampton (Ted) Rowland III, and a web of companies they owned or operated, used personal financial information bought from third-party lead generators or data brokers to make unauthorized deposits of between $200 and $300 into consumers’ bank accounts. Often, the scheme targeted consumers who had previously submitted their personal financial information – including their bank account numbers –to a website that offered payday loans.

After depositing money into consumers’ accounts without their permission, the defendants withdrew bi-weekly reoccurring “finance charges” of up to $90, without any of the payments going toward reducing the loan’s principal, the FTC alleged. The defendants then contacted the consumers by phone and email, telling them that they had agreed to, and were obligated to pay for, the “loan” they never requested and misrepresented the true costs of the purported loans. In doing so, the agency alleged, they often provided consumers with fake applications, electronic transfer authorizations, or other loan documents purporting to show the consumers had authorized the loan.

In many instances, if consumers closed their bank accounts to make the unauthorized debits stop, the defendants sold the supposed “loan” to debt buyers who then harassed consumers for payment, the FTC contends.

This case, part of the FTC’s continuing crackdown on scams that target consumers from every community in financial distress, alleges that the defendants violated the FTC Act, the Truth in Lending Act (TILA), and the Electronic Funds Transfer Act (EFTA). The FTC is seeking a court order to permanently stop the defendants’ unlawful practices.

Consumers seeking more information on potential unfair and deceptive payday lending practices should see Online Payday Loans on the FTC’s website. The Commission also has new blog posts for consumers and businesses on payday lending services.

The Commission vote authorizing the staff to file the complaint was 5-0. It was filed under seal in the U.S. District Court for the Western District of Missouri, Western Division, on September 8, 2014 and the seal was lifted on September 12, 2014. On September 9, 2014 the court issued a temporary restraining order against the defendants, temporarily stopping their allegedly illegal conduct.

The complaint announced today was filed against: 1) CWB Services, LLC; 2) Orion Services, LLC; 3) Sand Point Capital, LLC; 4) Sandpoint, LLC; 5) Basseterre Capital, LLC (based in both Nevis and Delaware); 6) Namakan Capital, LLC; 7) Vandelier Group, LLC; 8) St. Armands Group, LLC; 9) Anasazi Group, LLC; 10) Anasazi Services, LLC; 11) Longboat Group, LLC, also doing business as (d/b/a) Cutter Group; 12) Oread Group, LLC, also d/b/a Mass Street Group; 13) Timothy A. Coppinger, individually and as a principal of one or more of the corporate defendants; and 14) Frampton T. Rowland, III, individually and as a principal of one or more of the corporate defendants.

NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

Federal Trade Commission and Department of Justice Sign Antitrust Cooperation Agreement with Colombia

Federal Trade Commission Chairwoman Edith Ramirez has signed an antitrust cooperation agreement with the Colombian antitrust agency on behalf of the FTC. The agreement also was signed by Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division, and went into effect today with the signature of Pablo Felipe Robledo, Colombia’s Superintendent of Industry and Commerce. The agreement will enable the antitrust agencies in the two countries to enhance further their law enforcement relationship.

People signing the Memorandum of Understanding
Signing the Memorandum of Understanding are, from left: Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division; Edith Ramirez, Chairwoman of the Federal Trade Commission; and Luis Carlos Villegas, Ambassador of Colombia to the United States. (Photo: Department of Justice)

The new agreement contains provisions for antitrust enforcement cooperation and coordination, conflict avoidance and consultations with respect to enforcement actions, and technical cooperation, and is subject to effective confidentiality protections.

The U.S. antitrust agencies and Colombia’s Superintendence of Industry and Commerce, the agency that enforces Colombia’s competition law, have steadily improved their ties, both bilaterally and under the terms of the U.S.-Colombia Trade Promotion Agreement.

Chairwoman Ramirez signs the Memorandum of Understanding with Ambassador Villegas participating. (Photo: Department of Justice)

“Colombia has a well developed competition regime, and we have a strong working relationship with its competition agency,” said Chairwoman Ramirez. “We look forward to working with the Superintendence to advance our shared goal of promoting convergence around sound competition policy throughout the hemisphere.”

“The Colombians have a proven antitrust system, and this agreement will allow us to work more closely with our colleagues in Bogotá,” said Assistant Attorney General Baer. “Enforcement cooperation based on sound policies is critical to maintaining competitive markets in the Americas, particularly for economies as linked as ours.”

Pablo Felipe Robledo (seated), Colombia’s Superintendent of Industry and Commerce, signs the MOU. Looking on are (at left) Russell Damtoft, Associate Director, FTC Office of International Affairs, and Caldwell Harrop, Dept. of Justice.

Highlights of the new agreement include:

Mutual acknowledgment of the importance of antitrust cooperation, including information sharing and possible coordination of enforcement actions when pursuing enforcement activities with regard to related matters;
Agreement to take one another’s important interests into account in order to minimize possible conflicts arising out of antitrust enforcement actions; and
Agreement to maintain the confidentiality of any sensitive information provided by the other party.

The agreement entering into force today does not change existing law in either country. Colombia has had a law dedicated to the preservation of competition since 1959. This cooperation agreement is similar in substance to those previously signed by the U.S. antitrust agencies with other jurisdictions in the Americas, including Brazil, Canada, Chile, and Mexico.

According to the Office for the United States Trade Representative, Colombia is currently the United States’ 21st-largest goods trading partner, with $40 billion in total (two way) goods trade during 2013. Goods exports totaled $19 billion, while imports totaled $22 billion.

The Commission vote authorizing Chairwoman Ramirez to sign the cooperation agreement was 5-0.

As more U.S. companies and consumers do business overseas, more FTC work involves international cooperation. The Office of International Affairs serves both as an internal resource to Commission staff on international aspects of their work and as an official representative to numerous international organizations. In addition, the FTC cooperates with foreign authorities through formal and informal agreements. The FTC works with more than 100 foreign competition and consumer protection authorities around the world to promote sound policy approaches. For questions about the Office of International Affairs, send an e-mail to [email protected]. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases and the FTC International Monthly for the latest FTC news and resources.

FTC Staff Provides Comment to CFPB on Mobile Financial Services

The staff of the Federal Trade Commission filed a comment in response to the Consumer Financial Protection Bureau’s request for information on the use of mobile financial systems by consumers and their potential benefits for the financial lives of underserved consumers. The FTC staff’s comment highlights five consumer protection issues posed by mobile financial services and the steps taken by the FTC to address them.

The issues highlighted in the comment include the potential liability for unauthorized charges using prepaid or stored value products; unfair billing practices on mobile carrier bills; the privacy of consumers’ personal and financial data; the security of consumers’ personal and financial data; and the potential use of consumers’ information by data brokers and other third parties. The comment notes the FTC’s authority and activity in the area of mobile commerce, including enforcement actions, public workshops and reports issued by the Commission.

The Commission vote authorizing staff to file the comment was 5-0.

FTC Stops Marketers of Phony Health Care ‘Discount’ Schemes Directed at Older Americans and Spanish-Speaking Consumers

The Federal Trade Commission has halted two health care scams that were designed to trick consumers into paying for phony “discount” cards, which the scammers falsely claimed would provide consumers with health insurance, or help them pay for prescription drugs.

Under settlements with the FTC and a default judgment entered by the court, the operators of a drug discount scheme directed at seniors have been banned from selling healthcare-related benefits or discount programs. In a separate action, a federal court temporarily halted a scheme that targeted Spanish-speaking and other consumers by pitching them a nearly worthless discount card and falsely claiming it would provide them with health insurance. The FTC seeks to permanently shut down the operation and return victims’ money.

AFD Medical

According to an FTC complaint filed in 2013, 10 defendants, calling from a call center in Montreal, Canada, pitched prescription drug discount cards they said would provide consumers with substantial discounts or even free prescription drugs. But the cards were available for free elsewhere and typically provided no discounts for anyone who had insurance. The defendants also led consumers to believe they had to buy the $299 card to continue receiving Medicare, Social Security, or medical insurance benefits. The court halted the scheme and froze the defendants’ assets, pending litigation.

Under the settlement orders, Fawaz Sebai and 9210-7838 Quebec Inc., and Stephane Scebba and 9262-2182 Quebec Inc., also are banned from telemarketing. All of the settling defendants are permanently prohibited from misrepresenting any good or service, failing to provide information for consumer redress, disclosing or otherwise benefiting from customers’ personal information, and failing to dispose of such information properly.

The settlement orders against Sebai and 9210-7838 Quebec Inc., and Scebba and 9262-2182 Quebec Inc., impose a $1,091,450.68 judgment, reflecting the amount of consumer harm. The judgments will be suspended when Sebai has surrendered certain investments, and Scebba and 9262-2182 Quebec Inc. have turned over $7,752.51.

The settlement orders against Dupont, and Lamborn and CAL Consulting LLC, also bar them from deceptive and abusive telemarketing tactics, and they impose judgments of $887,841.68 and $203,609, respectively, reflecting the total consumer payments each processed. The judgments will be suspended when Dupont has surrendered his interest in a house in Weston, Wisconsin, and Lamborn and CAL Consulting have given up $39,329.38. The full judgments under each order will become due immediately if the covered defendants are found to have misrepresented their financial condition.

The court entered a default judgment against the remaining three defendants, AFD Advisors LLC, AMG Associates LLC, and Park 295 Corp. It bans them from selling healthcare-related benefits or discount programs, permanently prohibits them from deceptive and abusive telemarketing tactics, and from misrepresenting any good or service, and imposes a monetary judgment of $887,841.68.

The Commission vote approving the proposed settlement orders was 5-0. The settlement orders and default judgment were entered by the U.S. District Court for the Northern District of Illinois, Eastern Division.

In connection with this scheme, a federal grand jury in East St. Louis, Illinois, recently returned an indictment charging Sebai and others with defrauding older Americans. The United States Attorney’s Office for the Southern District of Illinois is prosecuting the matter. More information is available here about the FTC’s Criminal Liaison Unit, which works to increase the criminal prosecution of consumer fraud.

The FTC would like to thank the Better Business Bureau Serving Wisconsin; the Wisconsin Department of Agriculture, Trade and Consumer Protection; the Wisconsin Department of Justice; the Oregon Department of Justice; the Canadian Anti-Fraud Centre; and the Royal Canadian Mounted Police for their valuable assistance in this case.

Partners In Health Care

At the FTC’s request, a federal court temporarily halted, pending litigation, a scheme that tricked Spanish-speaking and other consumers into buying a nearly worthless discount card. The defendants’ telemarketers told consumers they were buying a qualified health insurance plan under the Affordable Care Act (ACA).

According to an FTC complaint against Partners in Health Care, the defendants targeted consumers who needed health insurance or were paying high premiums for coverage because they had lost their jobs or had pre-existing medical conditions. Many of the consumers had submitted their contact information to lead-generation websites that claimed to provide information about health insurance. Others responded by telephone after hearing Spanish-language radio ads that falsely claimed the discount card was an ACA-qualified health plan.

The defendants’ telemarketers allegedly assured consumers that the “insurance” would pay for doctor and emergency room visits, and other services, in many cases with very low co-pays or deductibles. Instead, consumers received nearly worthless “discount cards” and were left uninsured, despite paying an enrollment fee and monthly payments ranging from $99 to several hundred dollars.

The defendants are Gary L. Kieper and Partners In Health Care Association Inc., also doing business as Partners In Health Care Inc., and their marketers, Walter S. Vargas, Constanza Gomez Vargas, and United Solutions Group Inc., also d/b/a Debt Relief Experts Inc. Kieper and Partners In Health Care provided the medical discount cards that various marketers, including United Solutions Group Inc., offered consumers.

All of the defendants allegedly misrepresented the discount cards as health insurance, in violation of the FTC Act. Kieper and Partners In Health Care also allegedly violated the Telemarketing Sales Rule (TSR) by misrepresenting the cards and assisting and facilitating telemarketers that were violating the TSR.

The Wisconsin Department of Agriculture, Trade and Consumer Protection and the Better Business Bureau Serving Wisconsin provided valuable information in support of the FTC’s investigation.

The Commission vote authorizing the staff to file the complaint was 5-0. The complaint was filed in the U.S. District Court for the Southern District of Florida. On August 25, 2014, the court entered a temporary restraining order halting the deceptive scheme, freezing the defendants’ assets and appointing a receiver to manage the corporate defendants.

Mortgage Lead Generator Will Pay $500,000 to Settle FTC Charges That It Deceptively Advertised Mortgage Refinancing

An Internet-based operation that finds potential borrowers for mortgage refinancing lenders will pay a $500,000 civil penalty to settle Federal Trade Commission charges that it deceived consumers with ads that falsely claimed they could refinance their mortgages for free.

“An ad that says you can refinance your mortgage for free is clearly deceptive if you have to pay money at some point before you sign on the dotted line,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “Lead generators need to understand that federal laws governing truth in advertising apply to them as well as everybody else.”

The FTC charged that the Colorado-based Intermundo Media, LLC, using the name “Delta Prime Refinance,” designed and distributed the deceptive refinancing ads as a part of its lead generation service. According to the complaint, the company ran these ads on Google, Microsoft, AOL, and Yahoo, as well as on its own websites. When consumers clicked on the ads, they were sent to a landing page where they provided contact information, which was ultimately passed on to providers of mortgage refinancing.

Delta Prime Refinance made deceptive and unsupported claims in its advertisements that overstated how much consumers could reduce their payments if they refinanced their mortgages, how low their annual percentage rate would be, and how easy it would be for them to qualify for refinancing, according to the complaint. Some ads falsely claimed there were no hidden fees, and that the mortgage refinancing was “free,” according to the FTC. Other ads claimed that fixed interest rates were available, when in fact the rates and the amount consumers spent on interest were variable.

The complaint charges Delta Prime Refinance with violating the Federal Trade Commission Act, the Mortgage Acts and Practices Advertising Rule, or “MAP” Rule and Regulation N, and the Truth in Lending Act and Regulation Z.

Under the terms of the settlement, in addition to paying the $500,000 civil penalty, Intermundo Media is prohibited from:

misrepresenting the terms and conditions of any financial product or service, and any term or condition of a mortgage credit product,
disclosing, selling, or transferring the consumer data obtained through the Delta Prime Refinance lead generation service; and
violating the FTC Act; the MAP Rule and Regulation N; and the Truth in Lending Act and Regulation Z.

For consumer information about mortgages, see Homes and Mortgages on the FTC’s website.

The Commission vote authorizing the staff to refer the complaint to the Department of Justice and to approve the proposed consent decree was 5-0. The DOJ filed the complaint and proposed consent decree on behalf of the Commission in U.S. District Court for the District of Colorado on September 12, 2014. The proposed consent decree is subject to court approval.

NOTE: The Commission authorizes the filing of a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. Consent decrees have the force of law when signed by the District Court judge.

FTC Issues Final Amendments to Mail or Telephone Order Merchandise Rule

The Federal Trade Commission has issued final amendments to the Mail or Telephone Order Merchandise Rule as part of its systematic review of all of the agency’s rules and guides.

The Rule, issued in 1975, requires mail and phone-based sellers to have a reasonable basis to expect that they can ship within any advertised time frame, or within 30 days. It also requires that, when the promised shipping time cannot be met, the seller must obtain the buyer’s consent to a shipping delay or refund payment for the unshipped merchandise.

In 2007, the FTC sought public comment on how the Rule could be amended to address changes in technology and commercial practices. Based on a review of comments received, in October 2011 the FTC proposed amendments to the Rule that would:

Clarify that the Rule covers orders placed over the Internet, and change the name of the Rule to the Mail, Internet, or Telephone Order Merchandise Rule;

Revise the Rule to allow sellers to provide refunds and refund notices to buyers by any means that is at least as fast and reliable as first-class mail;

Clarify sellers’ obligations when buyers use payment methods not spelled out in the Rule, such as debit cards or prepaid gift cards; and

Require that refunds be made within seven working days for purchases that were made using third-party credit, such as Visa or MasterCard cards. For credit sales where the seller is the creditor (such as merchants using their own store charge cards) the refund deadline would remain one billing cycle.

In April 2013, the FTC issued a staff report recommending that the Commission approve the proposed amendments and sought public comment on the report. The Commission received no comments. In the action announced today, the Commission has adopted the proposed amendments.

For information, read A Business Guide to the FTC’s Mail or Telephone Order Merchandise Rule.

The Commission vote approving the Notice amending the Mail or Telephone Order Merchandise Rule was 5-0. The changes will become effective December 8, 2014. (FTC File No. P924214; the staff contact is Jock K. Chung, Bureau of Consumer Protection, 202-326-2984)

FTC Settlement Bans Marketer Behind ‘Fat Burner’ Diet Pills from Manufacturing, Marketing Weight-Loss Products

The former CEO and co-founder of an Atlanta-based marketing operation has agreed to settle FTC charges that he deceived consumers with promises that they would “Get High School Skinny” by taking Healthe Trim supplements that supposedly burned fat, increased metabolism, and suppressed appetite.

John Matthew Dwyer III, the co-founder of HealthyLife Sciences, LLC, has agreed to be banned from the weight-loss industry to settle FTC charges of deceptive advertising.

Dwyer and HealthyLife Sciences advertised that their Healthe Trim supplements – which were sold online and at CVS, GNC, and Walgreens for up to $65 for a month’s supply – would cause rapid and substantial weight loss of as much as 165 pounds, according to the FTC. HealthyLife Sciences sold an Original Formula that purportedly contained hoodia gordonii as well as formulas containing raspberry ketone, green coffee bean, and garcinia cambogia. The advertising relied heavily on consumer testimonials, which portrayed losing weight as easy.

“Losing weight is rarely easy, and it would be a miracle if a pill made it so,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “Consumers should be skeptical when a product like this one claims to make weight loss easy.”

In radio and television ads, Dwyer and HealthyLife Sciences claimed Healthe Trim was clinically proven to cause weight loss, and would suppress users’ appetites and boost their metabolisms to help them lose weight without exercising or changing their daily routine. They used the tagline “Get High School Skinny,” and included testimonials from consumers who claimed that the weight was just “falling off.”

Under the settlements, Dwyer is banned from manufacturing and marketing weight-loss products. HealthyLife Sciences is banned from advertising that its products cause weight loss of two pounds or more a week for a month or more without dieting or exercise; cause substantial weight loss no matter what or how much the user eats; cause permanent weight loss; block the absorption of fat or calories to enable the user to lose substantial weight; safely enable users to lose more than three pounds per week for more than four weeks; cause substantial weight loss for all users; or cause substantial weight loss by wearing a product on the body or rubbing it into the skin. The FTC has previously issued guidance that these “gut check” claims are always false when made for dietary supplements, over-the-counter drugs, or patches, creams, wraps, and similar products worn on the body or rubbed into the skin.

The settlement with HealthyLife Sciences also requires that the company have two randomized, double-blind, placebo-controlled human clinical trials to support other claims relating to weight loss, increased metabolism, or appetite suppression. Both Dwyer and HealthyLife Sciences are prohibited from claiming that any dietary supplement, food, or drug is effective unless they have competent and reliable scientific evidence to back up the claims. They also are prohibited from misrepresenting the results of any tests, studies, or research. And they are required to retain data from human clinical trials used to support their advertising claims.

Consumers should carefully evaluate advertising for weight-loss products and for products that claim to cure diseases. For more information, see: Weight Loss & Fitness and Miracle Health Claims. Publishers, broadcasters, and marketers should consult Gut Check: A Reference Guide for Media on Spotting False Weight-Loss Claims.

The Commission vote to accept the proposed administrative consent orders for public comment was 5-0.

The FTC will publish a description of the consent orders in the Federal Register shortly. The orders will be subject to public comment for 30 days, beginning today and continuing through October 14, 2014, after which the Commission will decide whether to make the proposed consent orders final. Interested parties can submit written comments electronically on Health Life Sciences or John Matthew Dwyer in paper form by following the instructions in the “Supplementary Information” section of the Federal Register notice.

The FTC is a member of the National Prevention Council, which provides coordination and leadership at the federal level regarding prevention, wellness, and health promotion practices. This case advances the National Prevention Strategy’s goal of increasing the number of Americans who are healthy at every stage of life.

NOTE: When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $16,000.

FTC Approves Final Order Settling Charges that Firm Made False and Unsubstantiated Environmental Claims for its Plastic Lumber Products

Following a public comment period, the Federal Trade Commission has approved a final order settling charges that an Illinois-based firm that manufactures, markets, and sells plastic lumber made deceptive claims in its advertising and marketing material, including that many of its products are made entirely of recycled plastic. In reality, according to the FTC, the products were made of less than three-quarters recycled plastic.

Under the final FTC consent order, the company, Engineered Plastics Systems, LLC (EPS), must have credible evidence including scientific proof if necessary, to support any environmental benefit claims it makes. The final order also requires EPS to specifically substantiate any claims it makes about the amount of recycled content in its products. In addition, the final order prohibits such claims unless they are true and not misleading.

The Commission vote approving the final order was 5-0. (FTC File No. 132-3204; the staff contact is Robert Frisby, Bureau of Consumer Protection, 202-326-2098)

At FTC’s Request, Court Permanently Shuts Down Imposter Fraud Scheme

A federal district court in New York has barred the operators of an illegal robocall scheme from falsely telling consumers they could obtain refunds from the Federal Trade Commission on their behalf.

In its original complaint, the FTC charged that the operators of The Cuban Exchange, Inc., “spoofed” the FTC’s own toll-free number on consumers’ caller ID and misled more than 13,000 people into believing the operation had a connection with the FTC and could help get refunds from the Commission.

According to the FTC, the claims were a ruse, known as “imposter fraud,” that was designed to trick consumers into providing their personal information and bank account numbers. The operation also did business as CrediSure America and MyiPad.us.

The default order and final judgment entered by the U.S. District Court for the Eastern District of New York permanently bars The Cuban Exchange and its principal, Suhaylee Riviera, from making misrepresentations in connection with the marketing or sale of any goods or services. Among other things, the order prohibits defendants from claiming an affiliation with, or endorsement by, the FTC, or claiming that they can obtain refunds from the Commission on behalf of consumers.

The judgment also bars the defendants from making illegal robocalls and calling consumers whose phone numbers are on the Do Not Call Registry. Finally, the judgment permanently shuts down the websites that were used in the scheme – including ftcrefund.com – and prohibits defendants from starting any new website that advertises an ability to provide government refund services.

Commission Announces Workshop to Explore How Fraud Affects Different Communities

The Federal Trade Commission will host a workshop entitled “Fraud Affects Every Community” on Oct. 29, 2014, in Washington to examine how fraud affects groups including older adults, servicemembers and veterans, low-income communities, and African-Americans, Latinos, Asians, and Native Americans.

The FTC’s law enforcement experience, input from consumer advocates, and survey research reveal that some broadly-targeted frauds – such as telemarketing fraud, debt-relief services, phony opportunities to earn income, and unauthorized billing schemes – are more likely to affect certain communities. Meanwhile, some scams target specific populations – such as service-members shopping for cars, or people seeking help with the immigration process.

This workshop will examine the marketplace experiences of people in these communities, identify areas of concern in different communities, and seek to find actionable remedies through cooperation, law enforcement, industry fraud-prevention initiatives, community outreach and education. The event will bring together consumer advocates, state and federal regulators, fraud prevention experts, academics and researchers to discuss the issues. Its findings will enhance the FTC’s ongoing efforts to fight fraud in the marketplace in every community.

The workshop will address the following issues:

What are the top consumer protection concerns in each community?
What types of fraud are most prevalent in each community?
What are the different experiences consumers have on the Internet?
What interventions by consumer groups, industry, or academics have been and could be successful to prevent fraud?

Individuals who are interested in speaking at the workshop can email [email protected] with information about any relevant experience in this area by Sept. 24, 2014. The workshop, which is free and open to the public, will be held at the FTC’s Headquarters location at 600 Pennsylvania Avenue, NW, Washington, DC 20580.

The Commission will publish a more detailed agenda at a later date.

Reasonable accommodations for people with disabilities are available upon request. Requests should be submitted to Lara Kittleson via email at [email protected] or by calling 202-326-3388. Requests should be made in advance, and include a detailed description of the accommodations needed and contact information.

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