Every year the FTC brings hundreds of cases against individuals and companies for violating consumer protection and competition laws that the agency enforces. These cases can involve fraud, scams, identity theft, false advertising, privacy violations, anti-competitive behavior and more. The Legal Library has detailed information about cases we have brought in federal court or through our internal administrative process, called an adjudicative proceeding.
Nerium International, LLC
The Federal Trade Commission sued the multi-level marketer Neora, LLC, formerly known as Nerium International, LLC, and its Chief Executive Officer, Jeffrey Olson, alleging that the company operates as an illegal pyramid scheme and falsely promises recruits they will achieve financial independence if they join the scheme. The lawsuit also alleged that defendants deceptively promote “EHT” supplements as an antidote to concussions and chronic traumatic encephalopathy caused by repetitive brain trauma, as well as Alzheimer’s disease and Parkinson’s disease. The FTC sought to permanently stop the defendants’ deceptive practices alleged in the complaint. In September 2023, the district court ruled against the FTC on its claims.
Oversight of Rulemaking Activities by the Horseracing Integrity and Safety Authority
U.S. Anesthesia Partners, Inc., FTC v.
The University of Phoenix, Inc.
In December 2019, the FTC announced The University of Phoenix and its parent company agreed to pay a record $191 million to resolve allegations that they used deceptive advertisements falsely touting their relationships and job opportunities with companies such as AT&T, Yahoo!, Microsoft, Twitter, and The American Red Cross. The settlement order requires UOP to pay $50 million in cash, as well as cancel $141 million in debts owed to the school by students harmed by the deceptive ads.
In March 2021, the FTC sent payments totaling nearly $50 million to more than 147,000 UOP students who may have been lured by allegedly deceptive advertisements.
In late September 2023, the U.S. Department of Education announced that it will forgive nearly $37 million in federal loans for more than 1,200 students affected by the University of Phoenix’s deceptive practices, based in part on the FTC’s 2019 case.
James D. Noland, Jr. (Success by Health)
A federal court granted the Federal Trade Commission’s request to temporarily shut down an alleged pyramid scheme known as “Success By Health,” and to freeze the assets of the company and its executives.
In May 2023, a federal court sided with the Federal Trade Commission, ruling that James D. Noland, Jr. illegally owned and operated two pyramid schemes—Success By Health (SBH) and VOZ Travel—in violation of the FTC Act and that Noland violated a previous federal court order barring him from pyramid schemes and from misrepresenting multilevel marketing participants’ income potential.
Joseph Peacock and Oscar Ceballos, In the Matter of
Hey Dude Inc., FTC v.
In September 2023, the FTC announced online shoe retailer Hey Dude, Inc. (Hey Dude) will pay $1.95 to settle charges that the company misled consumers by suppressing negative reviews, including more than 80 percent of reviews that failed to provide four or more stars out of a possible five. The FTC also contends the company violated the Commission’s Mail, Internet, or Telephone Order Merchandise Rule in several ways between 2020 and 2022.
RagingBull.com
The FTC alleged that the defendants fraudulently marketed investment-related services that they claimed would enable consumers to make consistent profits and beat the market. Instead, the FTC alleges that consumers—many of them retirees, older adults, and immigrants—have lost at least $137 million to the scam in just the last three years. The defendants claimed in their pitches that consumers don’t need a lot of time, money, or experience, and that the global coronavirus pandemic represents a great time to pay hundreds or thousands of dollars to learn their secret trading techniques, claiming in one ad that the pandemic “…might be the most exciting opportunity in decades!” The defendants also made claims like “Learn how you could DOUBLE or TRIPLE your account in One Week!” In March 2023, the FTC sent payments totaling more than $2.4 million to consumers in this case.
American Screening, LLC
The Federal Trade Commission filed suit against American Screening for failing to deliver on promises that it 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), which requires that companies notify consumers of shipping delays in a timely manner and give consumers the chance to cancel orders and receive prompt refunds.
1Health.io/Vitagene, In the Matter of
The FTC reached a settlement with 1Health.io over allegations that it left sensitive genetic and health data unsecured, deceived consumers about their ability to get their data deleted and changed its privacy policy retroactively without adequately notifying and obtaining consent from consumers whose data the company had already collected.
Chaucer/Bates Accessories
The Federal Trade Commission has taken action against a group of Massachusetts- and New Hampshire-based clothing accessories companies, along with their owner, Thomas Bates, for falsely claiming that certain company products were manufactured in the U.S. The FTC’s order stops the companies and Bates from making deceptive claims about products being “Made in USA” and requires them to pay a monetary judgment.
Roomster Corp
The FTC and six states filed a lawsuit against rental listing platform Roomster Corp. and its owners John Shriber and Roman Zaks for allegedly duping consumers seeking affordable housing by paying for fake reviews and then charging for access to phony listings. Separately, the FTC and the states filed a proposed order against Jonathan Martinez—who allegedly sold Roomster tens of thousands of fake reviews—requiring him to pay $100,000 and cooperate in the FTC’s case against Roomster.
Edmodo, LLC, U.S. v.
The FTC obtained an order against education technology provider Edmodo for collecting personal data from children without obtaining their parent’s consent and using that data for advertising, in violation of the Children’s Online Privacy Protection Act Rule (COPPA Rule), and for unlawfully outsourcing its COPPA compliance responsibilities to schools.
Research & Mfg. Corp. of America, d/b/a Ramcoa
Vivint Smart Home, Inc.
Smart home security and monitoring company Vivint Smart Homes Inc. has agreed to pay $20 million to settle Federal Trade Commission allegations that the Utah-based firm misused credit reports to help unqualified customers obtain financing for the company’s products and services.
American Financial Benefits Center, et al.
In February 2018, the Federal Trade Commission charged student loan debt relief scammer Brandon Frere and his companies, including Ameritech Financial, with bilking millions of dollars from thousands of consumers by falsely promising that consumers’ monthly payments would go towards paying off their student loans. In October 2020, Frere and his companies settled FTC’s charges. In August 2023, the FTC and the Department of Justice sent more than $9 million in refunds to consumers who lost money.