Legal Library: Cases and Proceedings

The FTC finalized an order requiring Marriott and Starwood to settle charges they failed to implement reasonable data security, which led to data breaches.

The Federal Trade Commission has taken action against Instant Brands, manufacturer of Pyrex-brand kitchen and home products, for falsely claiming that all its popular glass measuring cups were made in the United States during a time some measuring cups were imported from China. The FTC’s proposed order against Instant Brands would stop the company from making deceptive claims about products being “Made in USA” and require them to pay a monetary judgment.

The Federal Trade Commission is sending more than $88,000 in refunds to consumers who bought Chinese-made measuring cups marketed as “Made in USA” by Instant Brands, the maker of Pyrex-brand kitchen and home products.

The operators of a massive real estate investment coaching scheme face permanent bans and will pay approximately $12 million for consumer redress as part of a settlement in a lawsuit filed by the Federal Trade Commission and the Utah Department of Commerce Division of Consumer Protection (UDCP).

The FTC and UDCP alleged that Zurixx, LLC, its owners Cristopher Cannon, James Carlson, and Jeffrey Spangler, and a number of associated companies operated a real estate investment coaching scheme that sold live seminars and telephone coaching using false earnings claims that convinced tens of thousands of consumers to pay them thousands or tens of thousands of dollars.

The Federal Trade Commission is sending more than $12 million in refunds to consumers who paid Zurixx, LLC for a real estate investment training program that allegedly made empty promises about earning big profits by “flipping” houses.

The Federal Trade Commission sued the multi-level marketer Neora, LLC, formerly known as Nerium International, LLC, and its Chief Executive Officer, Jeffrey Olson, alleging that the company operates as an illegal pyramid scheme and falsely promises recruits they will achieve financial independence if they join the scheme. The lawsuit also alleged that defendants deceptively promote “EHT” supplements as an antidote to concussions and chronic traumatic encephalopathy caused by repetitive brain trauma, as well as Alzheimer’s disease and Parkinson’s disease. The FTC sought to permanently stop the defendants’ deceptive practices alleged in the complaint. In September 2023, the district court ruled against the FTC on its claims. In May 2024, the district court ruled that Neora could not recover its fees and expenses because the FTC’s position in this case was “substantially justified.”

On Oct. 29, 2018, the Federal Trade Commission filed a complaint in federal court against Simple Health Plans LLC, Steven J. Dorfman, and five other entities, alleging that the defendants misled people to think they were buying comprehensive health insurance that would cover preexisting medical conditions, prescription drugs, primary and specialty care treatment, inpatient and emergency hospital care, surgical procedures, and medical and laboratory testing. On Nov. 1, 2019, the FTC filed an amended complaint adding Candida Girouard as an additional defendant.  

InMarket Media will be prohibited from selling or licensing any precise location data to settle Federal Trade Commission charges that the company did not fully inform consumers and obtain their consent before collecting and using their location data for advertising and marketing.

The FTC  charged Ring with compromising its customers’ privacy by allowing any employee or contractor to access consumers’ private videos and by failing to implement basic privacy and security protections, enabling hackers to take control of consumers’ accounts, cameras, and videos.

AT&T reached a settlement with the FTC over allegations that the wireless provider misled millions of its smartphone customers by charging them for “unlimited” data plans while reducing their data speeds.