Business Blog

Elderberry, hydrogen peroxide, iodine, mushrooms, and horse milk. (Horse milk?) The FTC just sent 50 more warning letters to companies promoting products or services advertised to prevent or treat coronavirus. Here’s the latest list of who’s been warned, what they’re selling, and some of what they’re saying.

Companies that deceive consumers often don’t act alone. Pull back the curtain and you may find behind-the-scenes businesses that lend a hand. The FTC alleges that Atlanta-based First Data Merchant Services and its former vice president, Chi “Vincent” Ko, engaged in conduct that helped scammers rake in megabucks at consumers’ expense.

Many small businesses are looking for a financial life preserver to help them stay afloat until the COVID-19 wave subsides. But joint warning letters just sent by FTC staff and the Small Business Administration raise concerns that some companies – including lead generators – are making questionable claims about their affiliation with SBA-administered programs designed to offer emergency relief to struggling businesses.

Small businesses and nonprofits should never be on the receiving end of another company’s deceptive practices. An FTC action challenges the methods of companies that allegedly pitch offers for “no risk” business publications and then follow up with hefty bills for unauthorized orders. But it doesn’t stop there.

Since the beginning of the COVID-19 crisis, the FTC has released dozens of warning letters against people trying to make an illegal buck off the Coronavirus. More than a month in, it seems like a good time to look back at what’s happened. If you follow this blog, you’ll know these have been busy weeks – with advice about spotting the many scams we’re all facing, news of the warning letters sent on a wide range of scams, and some enforcement actions filed.

FTC staff just sent letters to 45 more companies making COVID-19 prevention, treatment, or cure claims. There’s a lot to cover in this post, but it’s indicative of the breadth of questionable representations conveyed to consumers in response to the coronavirus pandemic.

If you’re a business owner, you may be planning to apply for a loan through the SBA’s Paycheck Protection Program (PPP) or Economic Injury Disaster Loans (EIDL) program. These programs recently got hundreds of billions of dollars in new funding. But, while you’re focused on getting a loan, scammers may be focused on you: hoping to trick you into giving them sensitive business information, like your bank account numbers, employees’ Social Security numbers, and even your money.
 

As part of its regulatory review, the FTC announced earlier this year Information Security and Financial Institutions: An FTC Workshop to Examine the Safeguards Rule. If the Safeguards Rule is of interest to you or your clients, you’ll want to know about three new developments.

FTC staff just sent 21 more warning letters to companies that have used allegedly unsubstantiated coronavirus prevention and treatment claims to promote products and services. Many of the latest letters focus on questionable representations for high doses of vitamins, intravenous treatments, ozone, and purported stem cell therapies.