Tag: Retail

As a result of a Federal Trade Commission lawsuit, a federal court has temporarily shut down a business opportunity scheme that lured consumers to invest $22 million in online stores, using unfounded claims about income and profits. The operators of Automators also claimed to use artificial intelligence to ensure success and profitability for consumers who agreed to invest with Automators.

In addition to offering consumers high return as “passive investors” in profitable e-stores, Automators, which previously used the names Empire and Onyx Distribution, also offered to teach consumers how to successfully set up and manage e-stores themselves using a “proven system” and the powers of artificial intelligence.

The owners of a money-making scheme that claimed to use artificial intelligence to boost earnings for consumers’ e-commerce storefronts have agreed to surrender millions in assets to settle the FTC’s case against them. In addition, all the businesses and two of their owners face a lifetime ban on selling business opportunities or coaching programs involving ecommerce stores.

The Federal Trade Commission is taking action against Florida-based ExotoUSA LLC. (d/b/a Old Southern Brass) for falsely claiming that certain company products were manufactured in the U.S, and that the company was veteran-operated and donated 10 percent of its sales to military service charities.

The FTC’s proposed order would stop the company and its owner, Austin Oliver, from making these deceptive claims and require them to pay a monetary judgment.

According to the FTC’s complaint, Old Southern Brass made many claims on its website and advertising that the products it sold were made in the United States.

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.

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.

In November, 2024, the FTC sent more than $140,000 to consumers who were deceived by false Made in USA claims from New England-based clothing companies Chaucer Accessories and Bates Accessories, along with Bates Retail Group.