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FTC Cracks Down On Bogus Medical Discount Scam Targeting Seniors

The Federal Trade Commission has moved to shut down a medical discount scheme that scammed seniors across the country by offering phony discounts on prescription drugs and pretending to be affiliated with Medicare, Social Security, or medical insurance providers.

In a complaint filed against the operators of the scam in the United States and Canada, the FTC alleges that seniors in the U.S. were targeted by the deceptive calls. The callers convinced their victims to turn over their bank account numbers and used that information to debit money from victims’ accounts.

“This scam, which targeted and deceived our nation’s seniors, is as cynical and wanton as they come,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “We look forward to bringing this operation to a halt and working to get relief for the victims.”

According to the FTC’s complaint, the telemarketing calls pitched a prescription drug discount card that, victims were told, would provide substantially discounted or even free prescription drugs. Many victims were led to believe they had to purchase the card to continue receiving their Medicare, Social Security, or medical insurance benefits.

In fact, the prescription drug discount cards the defendants provided to consumers are available for free by calling a toll-free number or visiting a website. The cards generally do not provide any discounts to consumers who already have insurance either through a government program or a private insurer.

The scam was run from both sides of the border. The defendants contacted consumers from a telemarketing boiler room in Montreal. The U.S. defendants then used the bank account information consumers provided in the calls to take approximately $300 from consumers’ bank accounts using a “demand draft.” Not all consumers who paid for the purported discount card even received it – some victims received nothing at all for their money.

The defendants are charged with violating Section 5 of the FTC Act by deceptively presenting themselves as government or insurance representatives, as well as by telling consumers that the discount plans they were selling could provide substantial discounts on prescription drugs. In addition, the defendants are charged with violating the FTC’s Telemarketing Sales Rule for their deceptive acts and for calling consumers whose numbers were on the National Do Not Call Registry. A federal judge in the U.S. District Court for the Northern District of Illinois issued a temporary restraining order halting the defendants’ deceptive scheme and freezing their assets.

The U.S.-based defendants in the case include AFD Advisors, LLC, of Wisconsin, which also does business as AFD Medical Advisors; AMG Associates, LLC, of Delaware, which also does business as AMG Medical and AMG Medical Associates; Aaron F. Dupont, individually and as an officer of AFD Advisors and AMG Associates; CAL Consulting, LLC, of Georgia, which also does business as Clinacall; Charles A. Lamborn, III, individually and as an officer of CAL Consulting; and Park 295 Corp, of New York.

The Canadian-based defendants are 9262-2182 Quebec Inc; Stephanie Scebba, individually and as an officer of 9262-2182 Quebec Inc.; 9210-7838 Quebec Inc; and Fawaz Sebal, also known as Frank Sebag, individually and as an officer of 9210-7838 Quebec Inc.

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

The FTC also would like to acknowledge the Royal Canadian Mounted Police and the Centre of Operations Linked to Telemarketing Fraud (Project COLT) for their valuable assistance. Launched in 1998, Project COLT combats telemarketing-related crime and includes members of the Royal Canadian Mounted Police, Sureté du Québec, Service de Police de la Ville de Montréal, Canada Border Services Agency, Competition Bureau of Canada, Canada Post, U.S. Department of Homeland Security (U.S. Immigration and Customs Enforcement and the U.S. Secret Service), the U.S. Postal Inspection Service, the Federal Trade Commission, and the Federal Bureau of Investigation. Since its inception, Project COLT has recovered $22 million for victims of telemarketing fraud.

The Commission vote authorizing the staff to file the complaint was 4-0. The complaint was filed in the U.S. District Court for the Northern District of Illinois.

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.

FTC Seeks Public Comment on kidSAFE’s Proposed Safe Harbor Program Under the Children’s Online Privacy Protection Rule

The Federal Trade Commission is seeking public comment on a proposed safe harbor program that the kidSAFE Seal Program has submitted for Commission approval under the agency’s Children’s Online Privacy Protection Rule.

The Rule includes a “safe harbor” provision designed to encourage increased industry self-regulation in this area. Under this provision, industry groups and others may ask the Commission to approve self-regulatory guidelines that implement the protections of the Rule. Companies that comply with the FTC-approved guidelines receive safe harbor from agency enforcement action under the Rule.

The FTC’s COPPA Rule requires that operators of commercial websites and online services directed to children under the age of 13, or general audience websites and online services that knowingly collect personal information from children under 13, must post comprehensive privacy policies on their sites, notify parents about their information practices, and obtain parental consent before collecting, using, or disclosing any personal information from children under the age of 13. Since the Rule took effect on April 21, 2000, five groups – Aristotle, Inc., the Children’s Advertising Review Unit of the Council of Better Business Bureaus, the Entertainment Software Rating Board, TrustE, and PRIVO – have received Commission approval for their safe harbor programs.

In a Federal Register notice to be published shortly, the FTC is seeking public comment about the proposed kidSAFE program; whether the proposed program provides “the same or greater protections for children” as those contained in the Children’s Online Privacy Protection Rule; whether the mechanisms used to assess operators’ compliance are effective; whether incentives for operators’ compliance with the guidelines are effective; and whether the program provides adequate means for resolving consumer complaints. The comment period will last for 30 days, until Oct. 18, 2013.

NOTE: Publication of this Federal Register notice does not indicate Commission approval of the safe harbor application. The Commission has 180 days to review proposed self-regulatory guidelines and must set forth its conclusions in writing.

FTC Proposes Changes to Wool Products Labeling Rules

The Federal Trade Commission is seeking public comment on proposed changes to its Wool Products Labeling Rules as part of its systematic review of all current FTC rules and guides.

The Wool Products Labeling Rules require that labels on wool products disclose the manufacturer’s or marketer’s name, the country where the product was processed or manufactured, and information about the fiber content. The FTC first issued the Rules under the Wool Products Labeling Act of 1939, known as the Wool Act. The agency completed its last review of the Rules in 1998 and modified the Rules in 1998 and 2000. In 2006, the Wool Act was amended by the Wool Suit Fabric Labeling Fairness and International Standards Conforming Act, which provides that wool products identified as cashmere or as containing very fine wools are misbranded unless they have no more than the average fiber diameter specified in the Act.

In January 2012, the FTC sought comment on the Rules. In response to the comments received, the FTC proposes changes designed to clarify and update the Rules, to make them more flexible, and to align them with the Commission’s proposed amendments to the Textile Rules. The proposed changes include incorporating the Wool Act’s new definitions for cashmere and very fine wools, clarifying descriptions of products containing virgin or new wool, and revising the Rules to allow certain hang-tags disclosing fiber trademarks and performance even if they do not disclose the product’s full fiber content.

The Commission vote approving the Notice of Proposed Rulemaking was 4-0. It is available on the FTC’s website and as a link to this press release and will be published in the Federal Register soon. Instructions for filing comments appear in the Federal Register Notice. Comments must be received by November 25, 2013. All comments received will be posted at www.ftc.gov/os/publiccomments.shtm. (FTC File No. P124201; the staff contact is Robert M. Frisby, Bureau of Consumer Protection, 202-326-2098)

For more information, read Threading Your Way Through the Labeling Requirements Under the Textile and Wool Acts and Cachet of Cashmere: Complying with the Wool Products Labeling Act.

Deceptive Robocallers Permanently Shut Down In FTC Settlements

The Federal Trade Commission has continued its crackdown on illegal robocallers, with two more companies agreeing to settle charges that they used prerecorded calls to trick consumers into deceptive credit card interest rate reduction scams.

Under separate proposed settlements, the defendants behind Treasure Your Success and Ambrosia Web Design will be banned from telemarketing and delivering robocalls. They also will be permanently prohibited from advertising, marketing, promoting, or offering for sale any debt relief product or service, or assisting others in doing so.

The FTC filed the initial cases against the operators of both companies in 2012 as part of a joint-agency crackdown on companies and individuals responsible for making millions of illegal “Rachel” robocalls pitching credit card rate-reduction services.

Treasure Your Success

In its original complaint against Treasure Your Success, the FTC alleged that the defendants tricked consumers into paying up-front fees for as much as $1,593, using deceptive offers for credit card interest rate reduction services.

The complaint named two individuals, Willy Plancher and Valbona Toska, as well as their three companies, WV Universal Management, Global Financial Assist, and Leading Production. The defendants began marketing credit card interest rate reduction services in 2010. According to the FTC’s complaint, the defendants lured consumers by telling them they could substantially reduce their credit card interest rates, down to as low as three percent, in many instances. After collecting the upfront fees, however, consumers typically failed to get any interest rate reduction or any savings at all.

In November 2012, at the FTC’s request, a federal court halted the scheme and froze the defendants’ assets pending further court proceedings. The FTC subsequently amended its complaint to include new defendants and additional counts.

In addition to the other provisions of the settlement, the proposed order holds the defendants liable for $2,032,626, based on the amount of consumer injury in the case. Due to the inability of the individual defendants to pay redress, the monetary judgment has been suspended. However, if the defendants misstate or fail to disclose any of their material assets, the full amount of the judgment will be immediately due and payable.

The case against Treasure Your Success was filed in the U.S. District Court for the Middle District of Florida, Orlando Division. Litigation continues against: HES Merchant Services Company, Business First Solutions, VoiceOnyx Corp., Hal E. Smith, Jonathon E. Warren, Ramon Sanchez-Ortega, Universal Processing Services of Wisconsin, and Derek Depuydt.

Ambrosia Web Design

According to the FTC’s complaint, the Ambrosia Web Design defendants delivered prerecorded calls that urged consumers they called to “press one” if they were interested in credit card interest rate reduction services. Consumers who pressed one were connected to a telemarketer who promised to get them very low interest rates or, in some cases, specific amounts of interest savings. The defendants often deceived consumers into thinking defendants were affiliated with a government program. If consumers agreed to sign up, the telemarketer got their credit card information, often charging an illegal advance fee before providing any service, the FTC alleged.

The FTC alleged that defendants then typically failed to deliver on their promises. In addition, the FTC charged defendants with failing to disclose their purported no-refund/no cancellation policy and billing some consumers without their express authorization. Finally, the FTC alleged defendants illegally called many phone numbers on the National Do Not Call Registry.

In June 2013, the FTC amended its original complaint to add charges of credit card laundering in violation of the agency’s Telemarketing Sales Rule. According to the FTC, in many cases, the defendants laundered credit card payments by processing them for other telemarketers through the Ambrosia defendants’ own merchant accounts; and arranging for other merchants to process credit card payments for the defendants through their accounts.

In addition to the bans on outbound telemarketing and robocalling, the proposed settlement order:

Bans the defendants from using certain payment processing methods, such as remotely created checks, that are often used to conduct fraud;
Prohibits the defendants from making misrepresentations regarding any “financial products or services;” and
Prohibits the defendants from misrepresenting the efficacy of a product or service.

The proposed settlement requires the defendants to liquidate virtually all of their assets, including a valuable watch and a sports memorabilia collection. It also includes a judgment of $8.3 million, which will be suspended if defendants comply with the terms of the settlement.

The settlement resolves the FTC’s charges against: 1) Ambrosia Web Design, LLC, also doing business as AWD; 2) Concord Financial Advisors LLC; 3) CAM Services Direct LLC; 4) AFB LLC; 5) Western GPS LLC; 6) Chris Ambrosia, individually and as a manager of Ambrosia Web Design LLC and CAM Services Direct LLC; and 6) LeRoy Castine, also known as Lee Castine, individually and as a manager of Ambrosia Web Design LLC, Concord Financial Advisors LLC, AFB LLC, and Western GPS LLC.

The case against Ambrosia Web Design was filed in the U.S. District Court for the District of Arizona.

The Commission vote approving the proposed settlements in both actions was 4-0.

Information for Consumers

The FTC has tips for consumers, as well as two new consumer education videos explaining robocalls and describing what consumers should do when they receive one. See ftc.gov/robocalls for more information.

FTC Puts Conditions on Honeywell’s Acquisition of Scan Engine Manufacturer Intermec

The Federal Trade Commission will require Honeywell International Inc. to license patents critical to the manufacture of two-dimensional (2D) bar code scanners, under a settlement resolving FTC charges that Honeywell’s acquisition of rival scan engine manufacturer Intermec Inc. would be anticompetitive.

The proposed FTC consent order preserves competition in the market for 2D scan engines by requiring Honeywell to license its and Intermec’s patents for 2D scan engines to Datalogic IPTECH s.r.l for the next 12 years. Scan engines are used in products such as retail store scanners to translate an image (often a UPC barcode) into a digital format that can be interpreted and analyzed by a computer.

“Although divestiture of assets is the preferred remedy in merger cases, licensing requirements can preserve competition in markets where access to needed technology is the main barrier to entry,” said Deborah Feinstein, Director of the FTC’s Bureau of Competition. “By requiring Honeywell to license its technology, the proposed order gives Datalogic access to the patents it needs to enter the U.S. market immediately and restore the competition lost due to the merger.”

Honeywell is a New Jersey-based diversified technology and manufacturing company with worldwide operations. It develops 2D scan engines and related devices through its subsidiaries Hand Held Products, Inc. and Metrologic Instruments, Inc., the latter of which does business as Honeywell Scanning and Mobility.

Intermec, headquartered in Everett, Washington, is a leading manufacturer of scan engines and other automated identification and data capture equipment, including barcode scanners and printers. Under an agreement signed on December 9, 2012, Honeywell proposes to acquire Intermec for approximately $600 million.

According to the FTC’s complaint, Honeywell, Intermec, and a third competitor, Motorola, are the only 2D scan engine makers in the United States that have broad enough intellectual property portfolios to insulate them, and their customers, from potential patent-infringement lawsuits. Accordingly, Honeywell’s acquisition of Intermec would leave two companies – Honeywell and Motorola – with control of more than 80 percent of the already highly concentrated U.S. market for 2D scan engines and increase the likelihood of post-acquisition coordination between Honeywell and Motorola.

The most significant barrier to entry into the U.S. market from 2D scan engine manufacturers active outside the United States is lack of access to the relevant U.S. intellectual property. Datalogic markets 2D scan engines similar to those made by Honeywell and Intermec outside of the United States, but it currently lacks the necessary patent rights to compete in the United States. In order to preserve competition, the proposed consent order requires Honeywell to license its own 2D scan engine patents as well as those held by Intermec to Datalogic. In addition to the licensing requirements, the proposed consent order bars Honeywell from filing patent infringement actions against Datalogic for 2D scan engine products, and from transferring the patents in the license to anyone who does not commit to abide by the terms of the order.

The Commission vote to accept the consent agreement containing the proposed consent order for public comment was 4-0. The FTC will publish a description of the consent agreement package in the Federal Register shortly. The agreement will be subject to public comment for 30 days, beginning today and continuing through October 15, 2013, after which the Commission will decide whether to make the proposed consent order final. Interested parties can submit written comments electronically or in paper form by following the instructions in the “Invitation To Comment” part of the “Supplementary Information” section.

Comments in paper form should be mailed or delivered to: Federal Trade Commission, Office of the Secretary, Room H-113, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. The FTC is requesting that any comment filed in paper form near the end of the public comment period be sent by courier or overnight service, if possible, because U.S. postal mail in the Washington area and at the Commission is subject to delay due to heightened security precautions. Comments also can be submitted electronically.

NOTE: The Commission issues an administrative 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. 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.

The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action. To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to antitrust{at}ftc{dot}gov, or write to the Office of Policy and Coordination, Bureau of Competition, Federal Trade Commission, 601 New Jersey Ave., N.W., Room 7117, Washington, DC 20001. To learn more about the Bureau of Competition, read Competition Counts. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

FTC Sends Refund Checks to Consumers Who Bought Dietary Supplements

An administrator working for the Federal Trade Commission is mailing 2,546 checks averaging $71.71 each to consumers who bought Accelis, nanoSLIM, and any Cold MD, Germ MD, or Allergy MD dietary supplements between January 2006 and July 2010.

The FTC charged Iovate Health Sciences U.S.A. and two affiliated Canadian companies with deceptively advertising that their supplements could help consumers lose weight and treat or prevent colds, flu, and allergies.

The checks, which total $182,573.43, must be cashed within 60 days after they are issued. The amount consumers receive depends upon the amount of claims they submitted that were approved. Consumers were eligible to claim up to five of a single product and up to 10 purchases total.

The deadline for filing a refund request has expired. Consumers who have questions should call 1-877-576-9978 or visit the Iovate Refunds page. For more general information, see www.FTC.gov/refunds. The FTC never requires consumers to pay money or provide information before redress checks can be cashed.

Consumers should carefully evaluate advertising claims for dietary supplements. For more information see: Dietary Supplements.

FTC Shuts Down Fraudulent Debt Relief Operation

The defendants behind an alleged credit card interest rate reduction scam are banned from selling debt relief services and from telemarketing any goods or services.

A federal court judge in Florida approved and signed a stipulated order against Innovative Wealth Builders, Inc., (IWB) and its three Florida-based principals: Carly Janene Pelland (also known as Carly Zurita), Sheryl Leigh Lopez, and Tamara Dawn Johnson. The defendants agreed to settle Federal Trade Commission allegations that they falsely promised to substantially reduce consumers’ credit card interest rates and save them thousands of dollars on their credit card debts.

The FTC will continue to move forward with litigation against Independant Resources Network Corp. (IRN), the payment processor that allegedly assisted and facilitated the scam. In June, the FTC amended its original complaint to name IRN as a defendant in the case.

According to the FTC’s complaint, the settling defendants, IWB and its three principals, violated the FTC Act by misrepresenting credit card interest rate reduction services, misrepresenting refund policies, and billing consumers without authorization. The complaint also alleges the defendants violated the FTC’s Telemarketing Sales Rule by misrepresenting the debt relief services they were selling, charging a fee before providing these services, and billing consumers without their express informed consent.

The stipulated order also prohibits the settling defendants from making any material misrepresentations in connection with advertising, marketing, promotion, offering for sale, or sale of any financial related product or service. The order includes a $9.9 million judgment against IWB and its three principals.

The Commission’s vote authorizing staff to file the stipulated final order was 4-0. The FTC filed the stipulated final order for permanent injunction in the U.S. District Court for the Middle District of Florida, Tampa Division. The District Court judge signed and approved the order on Sept. 10, 2013.

NOTE: Stipulated orders have the force of law when signed and approved by the District Court judge.

FTC Settlement Bans Defendants from Engaging in Debt Collection and Interest Rate Reduction Schemes

Under settlements with the Federal Trade Commission, the defendants in two Tampa, Florida-area operations that allegedly bilked consumers of millions of dollars are banned from providing various types of financial services used in their schemes. In the spring of 2012, at the request of the FTC, a court shut down the two operations.

According to the FTC, the defendants used phony debt collection calls from India and bogus claims that they would reduce consumers’ credit card interest rates to bilk consumers. Brett Fisher, a repeat offender who settled charges with the FTC in 2009 in a scam involving both advance-fee credit cards and bogus interest-rate reduction claims, masterminded both schemes, the FTC alleged.

The settlements impose a $25.3 million judgment against Fisher, and require other settling defendants to surrender available assets to satisfy their monetary judgments. Defendants Pro Credit Group, LLC, Consumer Credit Group, LLC, and My Success Track, LLC, are not parties to these settlements, are not currently represented, and are facing default judgments.

Debt Collection Scheme: The Defendants Took More Than $5 Million Consumers Did Not Owe to Them, or Did Not Owe at All

The FTC alleged that between January 2010 and August 2011, defendants Fisher, Andre Keith Sanders, Pro Credit Group, LLC, and Sanders Legal Group, P.A. set up U.S.-based financial accounts for a call center operation based in India to unfairly collect payday loan debts from consumers who either did not owe them, or owed them to somebody else. The operation’s callers used threats, lies, and abusive tactics to collect debts from consumers who had previously applied for or received loans from online payday loan companies and had supplied sensitive personal financial information that later found its way into the hands of those involved with the scam.

Once consumers agreed to pay, Fisher and attorney Sanders used Sanders Legal Group, P.A. to process at least $5 million from consumers whom the India-based callers had misled. Although numerous consumers complained to the local Better Business Bureau chapter about the abusive tactics of the callers, and many consumers tried unsuccessfully to get refunds, the defendants continued processing consumers’ payments.

The FTC has brought two similar cases involving allegedly phony debt collectors, American Credit Crunchers and Broadway Global Masters, as well as a case involving an allegedly phony payday loan brokering service, Vantage Funding.

According to the FTC, from at least January 2010 until it brought its action, defendants Fisher, Sanders, Dale Robinson, William Balsamo, and five companies they controlled – Pro Credit Group, Sanders Law, Consumer Credit Group, LLC, My Success Track, LLC, and First Financial Asset Services, Inc. – deceived consumers by offering a bogus service to negotiate lower interest rates. As part of their scheme, defendants allegedly used prerecorded telemarketing robocalls, including one from “Rachel” at “cardholder services” that urged consumers to press a number and speak to a live representative in order to obtain lower interest rates. According to the complaint, defendants’ telemarketers falsely represented that they had established relationships with consumers’ lenders and often assured consumers that, if they did not see the promised results, they would receive full refunds.

According to the FTC, the defendants violated the Telemarketing Sales Rule by allegedly charging consumers between $695 and $995 up front for their bogus service and failing to obtain written approval from consumers before sending them robocalls. The agency halted five similar robocall operations in November 2012.

The settlements include the following provisions:

Impose a $25.3 million judgment on Fisher, which he agrees will not be discharged as a result of his pending bankruptcy filing.
Ban Fisher from telemarketing, promoting financial goods and services, and debt collecting.
Ban Sanders, Sanders Legal Group, P.A., and Sanders Law P.A. from debt collection and telemarketing – with narrow exceptions that allow him to continue practicing law. He is required to turn over available assets to satisfy a $23.8 million judgment.
Ban Robinson from telemarketing and debt relief services, and require him to turn over available assets to satisfy a $7.2 million judgment.
Ban Balsamo and First Financial Asset Services, Inc. from providing debt relief services; and prohibit them from making or helping others with making robocalls, making or helping others with making outbound sales calls unless they document and record them, and helping anyone outside the United States who telemarkets to U.S. consumers. Balsamo is required to turn over available assets to satisfy an $11.2 million judgment.

For consumer information about avoiding financial scams, see Fake Debt Collectors and Credit Card Interest Rate Reduction Scams.

The Commission vote approving the proposed consent decrees was 4-0. The FTC filed the proposed consent decrees in the U.S. District Court for the Middle District of Florida, Tampa Division, and they were entered by the court on September 5, 2013.

NOTE: Consent decrees have the force of law when approved and signed by the District Court judge.

FTC Seeks Public Comment on Pinnacle Entertainment, Inc.’s Application to Divest Ameristar Casinos, Inc.’s Assets in Lake Charles, Louisiana to GNLC Holdings, Inc.

The Federal Trade Commission is seeking public comment on an application by Pinnacle Entertainment, Inc. for approval to divest Ameristar Casinos, Inc.’s casino and hotel project under construction in Lake Charles, Louisiana to GNLC Holdings, Inc. In a proposed order, the FTC requires Pinnacle to divest these assets to a Commission-approved buyer to resolve charges that its acquisition of Ameristar would reduce competition among casinos in Lake Charles, in violation of the antitrust laws. Pinnacle also is required by the order to divest a casino and two hotels in St. Louis, Missouri.

According to the FTC’s complaint, Pinnacle’s acquisition of Ameristar would result in increased prices and lower quality for casino customers in the St. Louis and Lake Charles areas. Pinnacle currently operates a casino in Lake Charles, where Ameristar is building a casino on an adjacent property, scheduled to open in 2014. In its application, Pinnacle requests FTC approval to sell all of the assets associated with Ameristar’s development and construction of its casino in Lake Charles to GNLC Holdings, Inc., the parent company of Landry’s Inc., which owns the Golden Nugget casinos in addition to approximately 450 restaurants. Pinnacle has not yet submitted an application to the FTC regarding the required divesture of the St. Louis casino assets.

The Commission will decide whether to approve the proposed divestiture after expiration of the public comment period. Public comments may be submitted until October 10, 2013. Written comments should be sent to: FTC Office of the Secretary, 600 Pennsylvania Ave., N.W., Washington, DC 20580. Comments also can be submitted electronically. Copies of the application also can be found on the FTC’s website and as a link to this press release. (FTC File No. 131-0064, Docket No. 9355; the staff contact is Daniel P. Ducore, Bureau of Competition, 202-326-2526; see related press release dated August 12, 2013)

The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action. To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to [email protected], or write to the Office of Policy and Coordination, Bureau of Competition, Federal Trade Commission, 601 New Jersey Ave., N.W., Room 7117, Washington, DC 20001. To learn more about the Bureau of Competition, read Competition Counts. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

FTC Seeks Public Comment on Imperium, LLC, Proposal for Parental Verification Method Under COPPA Rule

The Federal Trade Commission is seeking public comment on a proposed verifiable parental consent method that Imperium, LLC, has submitted for Commission approval under the agency’s Children’s Online Privacy Protection Rule.

Under the rule, online sites and services directed at children must obtain permission from a child’s parents before collecting personal information from that child. The rule lays out a number of acceptable methods for gaining parental consent, but also includes a provision allowing interested parties to submit new verifiable parental consent methods to the Commission for approval.

In a Federal Register notice to be published shortly, the FTC is seeking public comment about the proposed Imperium verifiable parental consent method; whether the proposed method is already covered by the existing methods included in the rule; and whether it meets the rule’s requirement that it be reasonably calculated to ensure that the person providing the consent is actually the child’s parent. The Commission also seeks comment on whether the program poses a risk to consumers’ information and whether that risk is outweighed by the benefits of the method. The comment period will last until Oct. 9, 2013.

NOTE: Publication of this Federal Register notice does not indicate Commission approval of the program. The Commission has 120 days to review proposed verifiable parental consent methods and must set forth its conclusions in writing.

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