Tag: Technology

Disney will pay $10 million to settle Federal Trade Commission allegations that the company allowed personal data to be collected from children who viewed kid-directed videos on YouTube without notifying parents or obtaining their consent as required by the Children’s Online Privacy Protection Rule (COPPA Rule). 

In April 2025, the FTC issued a proposed order requiring Workado, LLC to stop advertising the accuracy of its artificial intelligence (AI) detection products unless it maintains competent and reliable evidence showing those products are as accurate as claimed. Following a public comment period, the Commission approved the final consent order and responded to two comments the FTC received on the proposed order.

In June 2024, the FTC filed suit against FBA Machine and Bratislav Rozenfeld (also known as Steven Rozenfeld and Steven Rozen) alleging that, in a business opportunity scheme, they falsely guaranteed that consumers could make money operating online storefronts using AI-powered software. The defendants allegedly failed to deliver on the promised earnings claims and defrauded consumers out of over $15 million.

As a result of the FTC’s complaint, a federal court issued an order temporarily halting the scheme and putting it under the control of a receiver.

The FTC later added Amanda Peremen, Rozenfeld’s wife, as a relief defendant in the case. The amended complaint alleged that, though not directly involved in the scheme, she received proceeds from it.

In July 2025, the FTC announced that Rozenfeld will be permanently banned from selling business opportunities in settlement of FTC’s allegations and will be required to turn over the contents of multiple financial accounts and any funds realized upon the sale of real estate property. The proceeds will be used for consumer redress.

The FTC approved a proposed order banning SpyFone and its CEO Scott Zuckerman from the surveillance business over allegations that the stalkerware app company secretly harvested and shared data on people’s physical movements, phone use, and online activities through a hidden device hack.

The Federal Trade Commission announced a settlement with bankrupt crypto company Voyager that will permanently ban it from handling consumers’ assets and is filing suit against its former CEO, Stephen Ehrlich, for falsely claiming that customers’ accounts were insured by the Federal Deposit Insurance Corporation (FDIC) and were “safe,” even as the company was approaching an eventual bankruptcy. The complaint also names Stephen Ehrlich’s wife, Francine Ehrlich, as a relief defendant.

In the federal court complaint, the FTC charges that from at least 2018 until it declared bankruptcy in July 2022, Voyager used promises that consumers’ deposits would be “safe” to entice them to hand over their funds. When the company failed, consumers lost access to significant assets they had saved, including ongoing salary deposits, college tuition funds, and down payments for homes, according to the complaint, which notes that consumers were locked out of their cash accounts for more than a month and lost more than $1 billion in crypto assets.

In June 2025, the FTC announced that the Ehrlichs have agreed to pay $2.8 million to resolve the FTC’s charges. Stephen Ehrlich also agreed to a ban on marketing or selling retail products or services used to buy, sell, deposit, or trade cryptocurrency.

The FTC has filed a lawsuit against an online business opportunity scheme that it alleges has falsely claimed its “cutting edge” AI-powered tools would help consumers quickly earn thousands of dollars a month in passive income by opening online storefronts. According to the complaint, the scheme has defrauded consumers of at least $25 million.

According to the FTC’s complaint, the operators of the scheme charge consumers tens of thousands of dollars to start online stores on ecommerce platforms such as Amazon, Walmart, Etsy, and TikTok, while also requiring them to spend tens of thousands more on inventory. Ascend’s advertising content claimed the company was a leader in ecommerce, using proprietary software and artificial intelligence to maximize clients’ business success.

The operators of Ascend Ecom, an online business opportunity that allegedly cost consumers millions of dollars, will be banned from selling business opportunities and required to turn over assets to the Federal Trade Commission under the terms of a proposed court order.