The scheme started with a Craigslist ad for a rental property and ended with a $5.2 million judgment for violations of the FTC Act, the Restore Online Shoppers’ Confidence Act, the Fair Credit Reporting Act, and the Free Annual File Disclosures Rule.
Blog Posts Tagged with Advertising and Marketing
Like the three sides of a triangle, ROSCA – the Restore Online Shoppers’ Confidence Act – has three basic compliance requirements for online sellers who enroll consumers in continuity plans, often known as negative options. The law bans online negative options unless the seller: 1) clearly discloses all material terms of the deal before obtaining a consumer’s billing information; 2) gets the consumer’s express informed consent before making the charge; and 3) provides a simple mechanism for stopping recurring charges.
Do you have one of those massive white boards that takes up the entire wall of your conference room? You may need it to follow the machinations that multiple defendants allegedly engaged in so they could bombard consumers with robocalls by the billions. (Yes, that’s with a “b.”) The FTC has gone to court to put a stop to their illegal activities.
Small business keeps America in business. But while you have your shoulder to the wheel and nose to the grindstone, it can be tough to keep an eye out for scammers. That’s why the FTC and law enforcement partners across the country have your back. Just one example is Operation Main Street: Stopping Small Business Scams, a coordinated initiative involving 24 civil and criminal actions against B2B fraudsters.
When it came to Mobile Money Code’s “system,” money was mobile all right. It traveled in a one-way direction from consumers to the pockets of the principals behind the get-rich-quick venture. That’s what the FTC alleged in a lawsuit filed against an international network of defendants. The FTC says they used affiliate marketing to promise that people would earn “60k a month on 100% autopilot,” but the typical consumer never got off the runway.
It’s unfortunate, but it happens. First came cryptocurrency. Then came the cryptocurrency crooks. In the emerging cryptocurrency marketplace, what needs to be done to protect consumers from scams, schemes, and swindles? That’s the topic of a half-day workshop on June 25, 2018, in Chicago, and the FTC just announced the agenda.
The company’s name is MOBE – pronounced Mōb, not Moby – but according to a lawsuit filed by the FTC, the defendants tell quite a fish story to the consumers they hook with money-making promises.
Chances are that people you know were duped by scammers and wired the money via Western Union between January 1, 2004 and January 19, 2017. This Thursday, May 31st, is the deadline for consumers to file claims to get money back from the FTC’s and the Department of Justice’s settlement with Western Union. Do your friends a favor and tell them about the deadline.
Vision Solution Marketing and related defendants pitch services to prospective entrepreneurs and people looking to supplement their income. Among the defendants’ products is business “coaching” that sets people back as much as $13,995. But given the host of alleged misrepresentations cited in a lawsuit filed in federal court in Utah, the FTC says the defendants definitely aren’t playing on consumers’ team.
Imagine getting a prerecorded robocall claiming to be from a “data service provider for Google” giving you “final notice” that “If you do not act soon, Google will label your business as permanently closed.” Second only to a fire alarm going off, that constitutes an ASAP emergency for many small business owners. But those robocall warnings aren’t from Google.
You can say this about scammers: They tend toward the trendy. As new products and services enter the marketplace, it’s not long before fraudsters find a way to exploit consumer interest in the innovation to make a quick buck. Cryptocurrencies are no exception, which is why the FTC is hosting a workshop in Chicago on June 25, 2018, Decrypting Cryptocurrency Scams.
On April 27, 2018, the United States Court of Appeals for the D.C. Circuit dismissed a challenge to a November 2016 FTC staff letter addressing certain prerecorded calls or “robocalls” using soundboard technology.
Mosquitoes don’t just bug us. A big concern is their penchant for passing along pernicious diseases, including the Zika virus. New Jersey-based Aromaflage claimed its sprays and candles were effective at repelling mosquitoes – including ones that spread serious illnesses – and repelled mosquitoes as effectively as 25% DEET. The FTC alleges those representations were false or misleading.
Why are you mumbling?
The TV is not too loud!
What did you say? This restaurant is like Grand Central Station.
Sometimes a picture really is worth a thousand words. According to warning letters from the FDA and FTC, certain sellers of e-liquids – flavorings for e-cigarettes – are using packaging that imitates foods or beverages popular with children. Little kids who ingest what’s inside boxes that appear to be apple juice, cookies, candy, etc., risk acute nicotine toxicity, poisoning that can result in seizure, coma, cardiac and respiratory arrest, and death.
No matter what you call it – facts and figures, the boxscore, or a report from the stat-o-sphere – a recap is a great way to get the lay of the land. Which brings me to the FTC’s Annual Highlights, a short but detailed summary of the Commission’s 2017 efforts to promote competition and protect consumers.
When the screen goes blue
And the car breaks down
And the smartphone keeps rebooting eternally
Consumers won’t be afraid
No, they won’t be afraid
Just as long as you stand by your warranty.
Here’s the thing about nectar. It can be sweet, but sticky. People who paid Palo Alto-based Nectar Brand LLC for mattresses labeled “Designed and Assembled in the USA” thought they were getting a sweet deal. In fact, buyers were stuck with mattresses imported from China, already completed. The company, which also uses the names Nectar Sleep and DreamCloud, performed no assembly operations in the United States.
An FTC lawsuit alleges that money-making claims made by a related group of companies and individuals for their Amazing Wealth System are “amazing” all right – if by “amazing” you mean “not credible” or “unsupported by the facts.” The complaint charges the defendants with violating the FTC Act and the Business Opportunity Ru
When the FTC’s Bureau of Consumer Protection started the Business Blog in 2010, we promised readers “a minimum of ho-hum, a maximum of how-to, and as little yadda yadda yadda as a legal website can manage.” More than 1,000 Business Blog posts later and we’re still striving to keep things engaging and enlightening (although being a legal website and all, we’ve succeeded is cutting out only two of the yaddas).