Southwest Region

With its proximity to Mexico and high population of bilingual and Spanish-language speakers, the Southwest Region (SWR) has a long history of leading the FTC’s efforts to serve Spanish-speaking consumers. For example, in 1992, SWR brought the first Used Car Rule cases against dealerships that failed to provide a Spanish-language Buyer's Guide when sales were transacted in Spanish, as required by the Rule.

In 1997 and 1998, SWR led national enforcement sweeps, Campana Alerta and Campana Alerta II, against companies alleged to have used deceptive Spanish-language advertising claims to sell health and beauty products. These sweeps resulted in more than 21 actions, including seven cases by the FTC, seven cases by state Attorneys General, as well as cases by the FDA and the government of Mexico. SWR also organized several Health Claim Internet Surf Days with Canadian and Mexican consumer protection agencies in 1997. Authorities surfed the internet for false or deceptive advertising claims published in English, French, or Spanish concerning treatments or cures for serious diseases, and sent hundreds of emails warning advertisers that they must have evidence to back up such claims. SWR filed several enforcement actions challenging deceptive debt collection practices conducted in Spanish, including the agency’s first such case, United Recovery Systems, Inc. (2002), as well as Tono Records (2007) and LTD Financial Services, L.P. (2007). In 2006, SWR sued a mortgage lender and broker, MortgagesParaHispanos.com, for allegedly deceiving Spanish-speaking consumers about loan terms. It similarly challenged deceptive Spanish language auto advertisements in Trophy Nissan (2014) and Cowboy Toyota (2018).

In 2011, SWR led the Commission’s sweep of cases against immigration services scams, which resulted in 15 federal, 49 state, and nine local cases, as well as multiple administrative actions. As part of that sweep, SWR brought a successful enforcement action against an unlicensed notario operation, Loma International Business Group, that allegedly defrauded consumers nationwide. SWR also spearheads the FTC’s First Tuesday group to share best practices and discuss law enforcement actions against immigration services scams. The group comprises representatives from the FTC; the Department of Justice’s Executive Office for Immigration Review; the Department of Homeland Security’s Immigration and Customs Enforcement, U.S. Citizenship and Immigration Services, and Fraud Detection and National Security Directorate; 27 state Attorneys General; and eight state bar Unauthorized Practice of Law departments.

The Southwest Region (SWR) has developed expertise in handling pyramid and chain referral cases—complex cases to combat conduct that can cause enormous consumer injury. In 2001, SWR sued Skybiz.com, Inc., an international pyramid scheme, and its principals, and recovered $20 million in consumer redress. SWR sued Phoenix-based Vemma Nutrition Company, its owner, and its top affiliate for allegedly promoting a pyramid scheme across the globe—but particularly on college campuses across the United States. SWR obtained permanent injunctions with monetary judgments of $238,000,000 against the company and its owner and $6,790,915 against its top affiliate, which were partially suspended based upon the defendants’ abilities to pay. This year, SWR sued four individuals who promoted a series of different chain referral schemes, including Bitcoin Funding Team, which required the transfer of funds through bitcoin and other cyber currency.