Legal Library: Cases and Proceedings

In December 2020, Voice over Internet Protocol (VoIP) service provider Alcazar Networks Inc. and its owner settled FTC charges that they facilitated tens of millions of illegal telemarketing phone calls, including some calls from overseas and some that displayed spoofed caller ID numbers. The proposed settlement bars the defendants from similar misconduct in the future, imposes a monetary penalty, and requires them to screen and monitor their customers. This was the FTC’s second case against a VoIP service provider.

The FTC issued an administrative complaint challenging the merger of two prosthetics manufacturers that are top sellers of prosthetic knees equipped with microprocessors. According to the FTC’s complaint, Otto Bock’s consummated acquisition of FIH Group Holdings (owner of Freedom Innovations) harmed competition in the U.S. market for microprocessor prosthetic knees by eliminating head-to-head competition between the two companies, removing a significant and disruptive competitor, and entrenching Otto Bock’s position as the dominant supplier. Microprocessor knees, which use microprocessors to adjust the stiffness and positioning of the joint in response to variations in walking rhythm and ground conditions, provide a stable platform for amputees. Compared to other products, microprocessor prosthetic knees reduce the risk of falling, cause less pain, and promote the health and function of the sound limb. In addition to issuing an administrative complaint, the Commission authorized agency staff to seek a temporary restraining order, preliminary injunction, and ancillary relief in federal court, should doing so be necessary to ensure the Freedom Innovations business remains viable and to preserve the Commission ability to order effective relief. On Dec. 1, 2020, the Commission announced approval for the divestiture of the Freedom assets.

In November 2020, at the FTC’s request, a federal court in Ohio issued a temporary restraining order against 25 counterfeit websites that allegedly have been playing on consumers’ COVID-19 pandemic fears to trick them into paying for Clorox and Lysol products that the defendants never deliver.

In September 2016, nutritional supplement marketer NutraClick agreed to settle FTC charges that it lured consumers with “free” samples of supplements and beauty products and then violated the law by charging them a recurring monthly fee without their consent. Four years later, in September 2020, the FTC filed a complaint alleging the company and its two principals were continuing to deceptively market their products, in violation of the FTC order. The settlement order, announced simultaneously with the complaint, bans the defendants from negative option marketing and requires them to pay more than $1 million for consumer redress. 

In July 2020, the FTC required global suppliers of animal products, Elanco Animal Health, Inc. and Bayer Animal Health GmbH, to divest three animal health products to settle charges that Elanco’s proposed $7.6 billion acquisition of Bayer would likely be anticompetitive in those markets. On Sept. 11, 2020, the Commission announced the final consent agreement in this matter.

Pharmaceutical companies AbbVie Inc. and Allergan plc have agreed to divest assests to settle Federal Trade Commission charges that AbbVie's proposed $63 billion acquisition of Allergan would violate federal antitrust law. On Sept. 4, 2020, the Commission announced the final consent agreement in this matter.