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FTC Sends Refunds to Consumers Deceived by Genetic Testing Firm 1Health.io Over Data Deletion and Security Practices
FTC v Kochava, Inc.
The Federal Trade Commission filed a lawsuit against data broker Kochava Inc. for selling geolocation data from hundreds of millions of mobile devices that can be used to trace the movements of individuals to and from sensitive locations. Kochava’s data can reveal people’s visits to reproductive health clinics, places of worship, homeless and domestic violence shelters, and addiction recovery facilities. The FTC alleges that by selling data tracking people, Kochava is enabling others to identify individuals and exposing them to threats of stigma, stalking, discrimination, job loss, and even physical violence. The FTC’s lawsuit seeks to halt Kochava’s sale of sensitive geolocation data and require the company to delete the sensitive geolocation information it has collected.
Legion Media LLC, et al., FTC v.
In July 2024, a U.S. district court in central Florida unsealed a Federal Trade Commission complaint charging two related groups of defendants with defrauding consumers nationwide by enrolling them, without their knowledge, into continuity plans where they are shipped and charged repeatedly for personal care products that they did not agree to purchase.
The defendants allegedly deceived consumers with ads for “free” CBD and Keto-related personal care products, billing many for products they did not consent to purchase, signing many up for unwanted continuity plans, and debiting money from their bank accounts without prior authorization. In September 2024, the FTC announced three orders settling the Commission’s complaint and requiring the defendants to pay approximately $40 million in total to defrauded consumers.
Razer
The sellers of a supposed N95-grade face mask called the Zephyr will pay more than $1.1 million to provide full refunds to consumers nationwide, as well as a civil penalty, under a proposed settlement the Federal Trade Commission announced today. The order settling the complaint also bars Razer, Inc., from making COVID-related health misrepresentations or unsubstantiated health claims about protective health equipment and requires them to pay a civil penalty of $100,000.
Razer, Inc. to Pay More Than $1.1 Million for Misrepresenting the Performance and Efficacy of Supposed “N95-Grade” Zephyr Face Masks
Benefytt Technologies, et al., FTC v.
The Federal Trade Commission is taking action against healthcare company Benefytt Technologies, two subsidiaries, former CEO Gavin Southwell, and former vice president of sales Amy Brady, for lying to consumers about their sham health insurance plans and using deceptive lead generation websites to lure them in. According to the FTC complaint, Benefytt also illegally charged people exorbitant junk fees for unwanted add-on products without their permission. The proposed court orders require Benefytt to pay $100 million in refunds and prohibit the company from lying about their products or charging illegal junk fees. Southwell and Brady will be permanently banned from selling or marketing any healthcare-related product, and Brady will also be banned from telemarketing.
FTC Order Will Ban California-based Company from COVID-19 Advertising Claims
Precision Patient Outcomes
In November 2022, the FTC filed a complaint in court seeing civil penalties against California-based Precision Patient Outcomes, Inc. and the company’s CEO Margrett Priest Lewis for marketing an over-the-counter dietary supplement containing nothing more than vitamins, zinc, and a flavonoid as an effective treatment to mitigate the effects of COVID-19. In February 2024, the FTC announced an order settling its allegations that bars the defendants from the alleged deceptive practices.
FTC Obtains $195 Million Judgment, Permanent Ban on Telemarketing and Selling Healthcare Products Against Simple Health Over Charges It Sold Sham Health Insurance
FTC Warns Two Trade Associations and a Dozen Influencers About Social Media Posts Promoting Consumption of Aspartame or Sugar
FTC Sends Nearly $7 Million in Refunds to Consumers Harmed by Medical Discount Plans Sold as Health Insurance
FTC Announces Tentative Agenda for September 14 Open Meeting
FTC Finalizes Order with 1Health.io Over Charges it Failed to Protect Privacy and Security of DNA Data and Unfairly Changed its Privacy Policy
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.
FTC and HHS Warn Hospital Systems and Telehealth Providers about Privacy and Security Risks from Online Tracking Technologies
FTC Takes Action Against Makers of Sobrenix Supplement That Deceptively Claimed to Reduce Alcohol Cravings, Relied on Fake Endorsements
FTC Gives Final Approval to Order Banning BetterHelp from Sharing Sensitive Health Data for Advertising, Requiring It to Pay $7.8 Million
FTC Says Genetic Testing Company 1Health Failed to Protect Privacy and Security of DNA Data and Unfairly Changed its Privacy Policy
Dalal A. Akoury d/b/a AWAREmed, et al., U.S. v.
In March 2023, the FTC took action under the Opioid Addiction Recovery Fraud Prevention Act, suing Dr. Dalal A. Akoury and a set of companies she controls that operate as AWAREmed Health & Wellness Resource Center, a medical clinic, for making a wide range of false or unsupported claims for addiction treatment services, cancer treatment services, and the treatment of other serious conditions. The proposed order settling the Commission’s complaint bars Dr. Akoury and her AWAREmed clinic from making such unsupported claims and requires her to pay a $100,000 civil penalty.