Legal Library: Cases and Proceedings

As a result of a June 2024 settlement with the FTC, the operators of a sweepstakes scam that cost consumers millions agreed to settlements that permanently ban them from operating sweepstakes or making claims to consumers about prizes they have won or may win. The FTC first filed its complaint against Matthew Pisoni, Marcus Pradel and John Leon in 2015, alleging that they helped operate a sprawling sweepstakes operation that took more than $28 million from consumers throughout the United States and other countries In August 2024, the Commission announced the settlement with another individual defendant in the case, Victor Ramirez.

In May 2020, the FTC sued the operators of a Pennsylvania-based telemarketing scheme, alleging that they charged organizations such as businesses, schools, fire and police departments, and non-profits for books and newsletter subscriptions they never ordered. The agency’s complaint also names the defendants behind a New York-based debt collection operation, alleging that they illegally threatened the organizations if they failed to pay for the unordered merchandise.

In April 2023, International Credit Recovery, Inc. (ICR), officer Richard Diorio, Jr., and manager Cynthia Powell, have agreed to a permanent ban from the debt collection industry after being charged with engaging in bogus debt collection efforts against businesses and non-profits.

In March 2024, the district court ruled against the FTC on its claims. In June 2024, the district court denied the FTC's post-trial motion to alter or amend judgment.

The FTC has taken action against an alcohol addiction treatment service for allegedly disclosing users’ personal health data to third-party advertising platforms, including Meta and Google, for advertising without consumer consent, after promising to keep such information confidential.

The Federal Trade Commission is taking action to stop Lurn, a Maryland-based online business coaching seller, from making unfounded claims that consumers can make significant income by starting an array of online businesses. The company, its CEO Anik Singal, and spokespeople Tyrone Cohen and David Kettner have agreed to court orders that will require them to stop their unlawful practices, and require Lurn and Singal to turn over $2.5 million to the FTC to be used to refund money to consumers they harmed.

The Federal Trade Commission is sending more than $2.4 million in refunds to consumers who paid for Lurn’s business consulting programs and were deceived about the amount of money they could make from these services. 

Cerebral, Inc. has agreed to an order that, will restrict how the company can use or disclose sensitive consumer data and require it to provide consumers with a simple way to cancel services to settle FTC charges that the telehealth firm failed to secure and protect sensitive health data.

Blackbaud, Inc. will be required to delete personal data that it doesn’t need to retain as part of a settlement with the FTC over charges that the company’s lax security allowed a hacker to breach the company’s network and access the personal data of millions of consumers including Social Security and bank account numbers.

The Federal Trade Commission is taking action against motocross and ATV parts maker Cycra and its officer, Chad James, for falsely claiming that the company’s products were manufactured in the U.S. The FTC’s proposed order would stop Cycra and James from making deceptive claims about products being “Made in USA” and require them to pay a monetary judgment. In June 2023, the Commission announced the finalized order. In May 2024, the FTC sent $180,000 in refunds to consumers in this case.