Legal Library: Cases and Proceedings

The marketers of a home test kit for anthrax, and an on-line seller of a colloidal silver product purported to treat anthrax, have both settled Federal Trade Commission charges of false and unsubstantiated product advertising.

In October 2018, the FTC filed a complaint against defendants Forms Direct, Inc., also known as American Immigration Center, and owner Cesare Alessandrini, alleging that they falsely implied that their websites were affiliated with U.S. Citizenship and Immigration Services (USCIS).The defendants allegedly used such deception since 2010 to sell immigration form preparation services to consumers. The FTC’s settlement bars the defendants from continuing their misleading business practices and requires them to pay $2.2 million to compensate consumers. In early March 2020, the Commission announced it was sending checks totaling over $2 million to consumer defrauded through the scheme.

In April 2019, the FTC announced that 16 defendants settled charges that they deceptively marketed “cognitive improvement” supplements using sham news websites containing false and unsubstantiated efficacy claims, references to non-existent clinical studies, and fraudulent consumer and celebrity endorsements. The FTC also alleged the defendants used affiliate marketers to make deceptive claims for products including Geniux, Xcel, EVO, and Ion-Z. The settlements ban the defendants from engaging in similar conduct in the future. In February 2020, the Commission announced it was sending refund checks totaling over $551,000 to defrauded consumers.

Click Labs, Inc. settled Federal Trade Commission allegations that the company made false claims in connection with the EU-U.S. Privacy Shield framework. 

Global Data Vault, LLC, settled Federal Trade Commission allegations that the company made false claims in connection with the EU-U.S. Privacy Shield framework. 

Incentive Services, Inc., settled Federal Trade Commission allegations that the company made false claims in connection with the EU-U.S. Privacy Shield framework, which enables companies to transfer consumer data legally from European Union countries to the United States. 

TDARX, Inc., settled Federal Trade Commission allegations that the company made false claims in connection with the EU-U.S. Privacy Shield framework.

The Federal Trade Commission authorized an action to block Illumina Inc.’s proposed $1.2 billion acquisition of Pacific Biosciences of California, alleging in an administrative complaint that Illumina is seeking to unlawfully maintain its monopoly in the U.S. market for next-generation DNA sequencing systems by extinguishing PacBio as a nascent competitive threat. The Commission vote to issue the administrative complaint and to authorize staff to seek a temporary restraining order and preliminary injunction was 5-0. On Jan. 2, 2020, the parties abandoned the transaction.

DCR Workforce, Inc. reached a settlement with the FTC over allegations that the company made false or misleading representations about its participation in the EU-U.S. Privacy Shield framework.

LotaData settled Federal Trade Commission allegations that the company falsely claimed certification under the EU-U.S. Privacy Shield framework. 

EmpiriStat settled Federal Trade Commission allegations that the company falsely claimed certification under the EU-U.S. Privacy Shield framework. 

Trueface.ai settled Federal Trade Commission allegations that the company falsely claimed certification under the EU-U.S. Privacy Shield framework. 

Thru, Inc. reached a settlement with the FTC over allegations that the company made false and misleading representations about its participation in the EU-U.S. and Swiss-U.S. Privacy Shield frameworks.

Mortgage Solutions FCS, doing business as Mount Diablo Lending, and Ramon Walker agreed to pay $120,000 to settle Federal Trade Commission allegations that it violated the Fair Credit Reporting Act and other laws by revealing personal information about consumers in response to negative reviews posted on the review website Yelp. 

Medable settled Federal Trade Commission allegations that it falsely claimed participation in the EU-U.S. Privacy Shield framework, which enables companies to transfer consumer data legally from European Union countries to the United States.