Legal Library: Cases and Proceedings

Announcing settlement Evolv Technologies over allegations that the company made false claims about its AI-powered security screening system

Two tech support companies will pay $26 million to settle FTC charges that they bilked tens of millions of dollars from consumers, particularly older consumers, by duping them into buying computer repair services in violation of the FTC Act and the Telemarketing Sales Rule.

In March 2024, two tech-support companies agreed pay $26 million to settle FTC charges that they bilked tens of millions of dollars from consumers, particularly older consumers, by duping them into buying computer repair services in violation of the FTC Act and the Telemarketing Sales Rule. In March 2025, the Commission announced it was sending more than $25.5 million to consumers the companies defrauded.

A Federal Trade Commission action against household water treatment funding company Aqua Finance, Inc. (AFI) has led to a settlement that will provide $20 million in refunds and an additional $23.6 million in debt forgiveness for consumers harmed by its dealers’ deceptive sales tactics.

The FTC’s complaint against AFI charges that the company’s nationwide network of dealers went door-to-door, deceiving consumers about the financing terms for water filtering and softening products. According to the complaint, the bogus claims left consumers with thousands of dollars in unexpected debt and huge interest payments, while its financing terms impaired some consumers’ ability to sell their homes. 

In February 2025, the Commission more than $19.8 million in refunds to consumers who were harmed by deceptive sales tactics from household water treatment funding company Aqua Finance.

The Federal Trade Commission took action against payment processing company First American Payment Systems and two of its sales affiliates for targeting small- and medium-sized businesses. The FTC alleges that the defendants made false claims about fees and cost savings to lure merchants, many of whom had limited English proficiency. Once merchants were enrolled, the defendants withdrew funds from their accounts without their consent, and made it difficult and expensive for them to cancel the service. Under a proposed federal court order, the defendants will be required to return $4.9 million to harmed businesses, stop their deception, and make it easier for merchants to cancel their services. 

As a result of a Federal Trade Commission lawsuit, the operators of an alleged credit card debt relief scheme based in Tennessee have agreed to court orders that would permanently ban them from telemarketing and selling debt relief products or services.

Sean Austin, John Steven Huffman, John Preston Thompson, and their affiliated companies were charged by the FTC in November 2022 with taking tens of millions of dollars from people by falsely promising to eliminate or substantially reduce their credit card debt. At the time, a federal court agreed to the FTC’s request to temporarily freeze the defendants’ assets and appoint a receiver over the businesses while the case took place.

The U.S. District Court for the Middle District of Tennessee, Nashville Division, entered the final orders on April 28, 2023.

In January 2025, the FTC sent more than $5 million in refunds to consumers harmed by a deceptive credit card debt relief scheme known as ACRO Services.

Cognosphere has agreed to pay $20 million and to block children under 16 from making in-game purchases without parental consent to settle FTC allegations the company violated a children’s privacy law and deceived children and other users about the real costs of in-game transactions and odds of obtaining rare prizes.