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The FTC announced a settlement Celsius Network that will permanently ban it from handling consumers’ assets and charged three former executives with tricking consumers into transferring cryptocurrency onto the platform by falsely promising that deposits would be safe and always available.
The Federal Trade Commission took action under the FTC Act and the Opioid Addiction Recovery Fraud Prevention Act (OARFPA), suing Michael J. Connors and companies he controls for deceptively marketing their Smoke Away products as able to eliminate consumers’ nicotine addiction and enable them to quit smoking quickly, easily, and permanently. The case is the FTC’s first smoking cessation product challenge under OARFPA, and its first alleging the deceptive use of testimonials to sell a supposed addition-treatment product.
The proposed stipulated order settling the Commission’s complaint permanently bans Connors—who settled a 2005 FTC complaint regarding Smoke Away—and his companies from marketing or selling any substance use disorder treatment product or service, including any smoking cessation product or service.
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