Legal Library: Cases and Proceedings

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 September 2025, the FTC announced that Whaleco, Inc., which operates the online marketplace Temu, will pay $2 million to resolve Federal Trade Commission allegations that it violated the INFORM Consumers Act of 2023, by failing to provide consumers with required information and tools to help them avoid and report stolen, counterfeit, or unsafe goods while shopping online.

The Federal Trade Commission filed a complaint against Gateway Services and its subsidiary Gateway US Holdings, Inc., (collectively referred to as Gateway), which alleges that Gateway imposed noncompete agreements on almost all of its employees, which typically prohibited employees from working in the pet cremation service industry anywhere in the U.S. for one year after leaving Gateway.

Under a proposed FTC consent order, Gateway must, among other terms, immediately stop enforcing all existing noncompete agreements.

The Federal Trade Commission and the State of Nevada are taking action to stop a wide-ranging investment training and business venture scam that has bilked consumers out of more than $1.2 billion. According to the complaint filed by the FTC and the Nevada Attorney General, the scam currently operates as IYOVIA and has also used the brand names IM Mastery Academy, iMarketsLive, and IM Academy (collectively, “IML”).

On Aug. 7, 2025, the FTC announced that three of the defendants, Global Dynasty Network, LLC, Jason Brown, and Matthew Rosa, agreed to a settlement of the allegations.

In August 2025, a U.S. District Court judge in Nevada has issued a preliminary injunction against the three companies that executed the IM Mastery Academy schemes and the two individuals who have led it, halting their activities and requiring them to preserve their assets.

Follow settlements with several other defendants, in September 2025, the FTC announced proposed settlements with defendants Alex Morton and Brandon Boyd. 

The FTC and the state of Utah announced a settlement with the operators of Pornhub and other pornography-streaming sites over charges they deceived users by doing little to block tens of thousands of videos and photos featuring child sexual abuse material (CSAM) and nonconsensual material (NCM) despite claiming that this content was “strictly prohibited.” 

The FTC reached a settlement with Apitor Technology over allegations that its app enabled a third party in China to collect geolocation information from children without parental consent.

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.

The FTC is taking action against Arise Virtual Solutions for misleading consumers about the money they could make on Arise’s platform and marketing its business opportunity without complying with the FTC’s Business Opportunity Rule.

In August 2025, the FTC sent more than $6.7 million to consumers impacted by the gig work company’s deceptive earnings claims.

At the request of the Federal Trade Commission, a federal court temporarily halted  a business opportunity scheme known as Click Profit, which took millions from consumers by falsely promising consumers that they could earn big profits through online sales.

In a complaint, the FTC alleged that Click Profit and its owners deceived consumers by promising they could make large sums in “passive income” using a proprietary system powered by artificial intelligence. The system supposedly enables consumers to sell goods through online platforms such as Amazon, Walmart, and TikTok. Click Profit also deceived consumers by claiming to be affiliated with major companies like Nike and Disney as a ploy to convince consumers to turn over tens of thousands of dollars each, according to the complaint.

In August 2025, the FTC announced that under a proposed settlement, Click Profit and its owners will be permanently banned from the industry and will be required to turn over cash, real estate, and personal property that will be used for consumer redress.

 The FTC asked a federal court to stop Air AI from using allegedly deceptive claims about business growth, earnings potential, and refund guarantees to fleece small businesses and entrepreneurs.