Legal Library: Cases and Proceedings

Global Partners LP and Richard Wiehl have agreed to divest to Petroleum Marketing Investment Group, LLC, seven stores that sell gasoline and diesel fuel in five local markets in Connecticut, to settle Federal Trade Commission charges that Global’s proposed acquisition of 27 retail gasoline and diesel outlets owned or operated by Wiehl violates federal antitrust laws. The complaint alleges that the acquisition will harm competition for the retail sale of gasoline in and around the Connecticut towns and cities of Fairfield, Bethel, Milford, Wilton, and Shelton. In all of these local markets except Wilton, the acquisition will also harm competition for the retail sale of diesel fuel. Under the terms of the proposed consent order, among other stipulations, Global and Wiehl must divest to Petroleum Marketing Investment Group six Global retail fuel outlets and one Wheels retail fuel outlet.

The FTC sued a publisher called Agora Financial, LLC, alleging that it tricks seniors into buying books, newsletters, and other publications that falsely promise a cure for type 2 diabetes or promote a phony plan to help them cash in on a government-affiliated check program. According to the FTC’s complaint, Agora Financial and some of its affiliates target publications, including The Doctor’s Guide to Reversing Diabetes in 28 Days (The Doctor’s Guide), primarily at older consumers nationwide, as well as pitching them on a fake scheme to cash in on Congress’ Secret $1.17 Trillion Giveaway. The FTC announced a proposed order settling the allegations against all defendants in February 2021.

In April 2020, the marketers of three supplements called Neurocet, Regenify, and Resetigen-D settled FTC charges that they deceptively promoted their products to older Americans using false claims that their products could stop pain and treat age-related ailments. The proposed order bars the defendants—five related companies and their principals from making any claims about the health benefits of their products unless they are true and supported by scientific evidence. In October 2021, the FTC announced it was returning $1.1 million to consumer who bought the defendants’ products.

In January 2020, three people and a telephone call center that helped Florida-based Grand Bahama Cruise Line LLC (GBCL) and others to make millions of illegal robocalls to consumers settled an FTC complaint and are permanently barred from making telemarketing robocalls. The FTC will litigate in federal court against GBCL and six other defendants involved in the massive operation, who have not agreed to settle. The FTC announced a settlement with the seven remaining defendants in September 2021.

The Federal Trade Commission’s complaint against FleetCor, a company that sells fuel card services to businesses, alleges that it has charged customers at least hundreds of millions of dollars in hidden fees after making false promises about helping customers save on fuel costs. The case was filed in December 2019.

The Federal Trade Commission has issued an administrative complaint and authorized an action to block the proposed merger of Jefferson Health and Albert Einstein Healthcare Network, two leading providers of inpatient general acute care hospital services and inpatient acute rehabilitation services in both Philadelphia County and Montgomery County, Pennsylvania. The proposed merger would eliminate the robust competition between Jefferson and Einstein for inclusion in health insurance companies’ hospital networks to the detriment of patients. The Commission vote to issue the administrative complaint and to authorize staff to seek a temporary restraining order and preliminary injunction was 4-0-1, with Chairman Joseph J. Simons recused.  The Commission vote to voluntarily dismiss its appeal to the Third Circuit of the district court decision declining to preliminarily enjoin the merger of Thomas Jefferson University and Albert Einstein Healthcare Network was 4-0.

CoreLogic, Inc. agreed to settle FTC charges that its proposed $661 million acquisition of DataQuick Information Systems, Inc. from TPG VI Ontario 1 AIV L.P. would likely substantially lessen competition in the market for national assessor and recorder bulk data. The FTC’s proposed settlement order requires CoreLogic to license to Renwood RealtyTrac national assessor and recorder bulk data as well as several ancillary data sets that DataQuick provides to its customers. The order allows RealtyTrac to offer customers the data and services that DataQuick now offers and to become an effective competitor in the market.

Retail fuel station and convenience store operator Alimentation Couche-Tard Inc. and its affiliate CrossAmerica Partners LP agreed to divest 10 fuel stations in Minnesota and Wisconsin to settle Federal Trade Commission charges that ACT’s proposed acquisition of Holiday Companies would violate federal antitrust law. The FTC later alleged that they violated a 2018 order requiring divestitures of 10 retail fuel stations in Minnesota and Wisconsin to Commission-approved buyers no later than June 15, 2018. They agreed to pay a $3.5 million civil penalty to the FTC to settle the allegations.

A payment processor that allegedly ignored clear warning signs its client was operating an unlawful business coaching and investment scheme will be barred from processing payments in the business coaching field under a settlement with the Federal Trade Commission.

According to the FTC’s complaint against California-based QualPay, the company for years processed payments for MOBE, a scheme the FTC alleged charged consumers hundreds of millions of dollars for worthless business coaching products, and that Qualpay ignored numerous signs that MOBE was a fraudulent business.

In September 2017, a group of online marketers agreed to pay more than $2.5 million to settle FTC charges that it deceived consumers with “free” and “risk-free” trials for cooking and golfing products. According to a complaint filed in March 2017, the defendants offered “free” products, without clearly disclosing that by accepting the “free” product consumers were agreeing to be charged each month for a subscription if they did not cancel. They also allegedly misrepresented their return, refund and cancellation policies. The order setting the FTC’s complaint barred the defendants from misrepresenting the cost of any good or service, that consumers will not be charged, that consumers can get something for a processing or shipping fee with no further obligation, and that a product or service is free. In April 2020, the FTC announced it was sending refund checks totaling $488,629 to defrauded consumers.

The Federal Trade Commission has issued an administrative complaint and authorized a federal court action to block the proposed merger of Jefferson Health and Albert Einstein Healthcare Network, two leading providers of inpatient general acute care hospital services and inpatient acute rehabilitation services in both Philadelphia County and Montgomery County, Pennsylvania. The proposed merger would eliminate the robust competition between Jefferson and Einstein for inclusion in health insurance companies’ hospital networks to the detriment of patients. The Commission vote to issue the administrative complaint and to authorize staff to seek a temporary restraining order and preliminary injunction was 4-0-1, with Chairman Joseph J. Simons recused. The administrative trial is scheduled to begin on Sept. 1, 2020.

The Federal Trade Commission authorized staff of the Bureau of Competition to file suit to enjoin Edgewell Personal Care Company’s proposed $1.37 billion acquisition of its key competitor, Harry’s, Inc. The Commission’s complaint alleged that the proposed combination would eliminate one of the most important competitive forces in the shaving industry. The loss of Harry’s as an independent competitor would have removed a critical disruptive rival that has driven down prices and spurred innovation in an industry that was previously dominated by two main suppliers, one of whom is the acquirer. On Feb. 10, 2020, the FTC issued a statement on the parties’ announcement that they had abandoned the acquisition.