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As a result of a June 2024 settlement with the FTC, the operators of a sweepstakes scam that cost consumers millions agreed to settlements that permanently ban them from operating sweepstakes or making claims to consumers about prizes they have won or may win. The FTC first filed its complaint against Matthew Pisoni, Marcus Pradel and John Leon in 2015, alleging that they helped operate a sprawling sweepstakes operation that took more than $28 million from consumers throughout the United States and other countries In August 2024, the Commission announced the settlement with another individual defendant in the case, Victor Ramirez.
In September 2023, the FTC announced online shoe retailer Hey Dude, Inc. (Hey Dude) will pay $1.95 million 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. In August 2024, the FTC announced it was returning $1.9 million to defrauded consumers.
An investigation from the Division of Enforcement and the Division of Privacy and Identity Protection found TikTok/ByteDance violated a 2019 consent order for infringing the Children’s Online Privacy Protection Act. The DOJ is bringing a lawsuit on behalf of FTC for flagrantly violating COPPA and violating the 2019 order.
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