Tag: deceptive/misleading conduct

Online children’s education company Age of Learning, Inc., which operates ABCmouse, will pay $10 million and change its negative option marketing and billing practices to settle Federal Trade Commission charges that it made misrepresentations about cancellations and failed to disclose important information to consumers, leading tens of thousands of people to be renewed and charged for memberships without proper consent.  The complaint also alleges the Southern California-based company unfairly billed ABCmouse users without their authorization and made it difficult for consumers to cancel their memberships, preventing consumers from avoiding additional charges. In April 2021, the FTC announced it was sending $9.7 million in refunds to defrauded consumers.

Gennex Media LLC, which sells customizable promotional products such as wristbands, lanyards, temporary tattoos, and buttons, and its owner, Akil Kurji, will settle FTC charges that they made false, misleading, or unsupported advertising claims that their “Brandnex” products were all or virtually all made in the United States. The complaint alleges Gennex and Kurji violated the FTC Act by claiming on their Brandnex website that the products they sell are made in the United States, when in numerous instances the products are wholly imported from China. Under the proposed settlement, Gennex and Kurji are prohibited from making the deceptive claims alleged in the complaint and are required to pay a monetary judgment of $146,249.24. On April 14, 2021, the Commission announced the final consent agreement in this matter.

Online fashion retailer Fashion Nova will pay $9.3 million to settle Federal Trade Commission charges that it didn’t properly notify consumers and give them the chance to cancel their orders when it failed to ship merchandise in a timely manner, and that it illegally used gift cards to compensate consumers for unshipped merchandise instead of providing refunds.

The FTC alleged that this company and its operators collected more than $5.2 million from consumers through illegal debt collection practices. In its complaint, the FTC alleged that the company used the defendants in the National Landmark Logistics case to place deceptive robocalls alleging that consumers owed debt and faced legal action if they did not reply. Once consumers called the defendants after receiving the message, the defendants often falsely claimed to be representing a law firm or threatened consumers with arrest if they did not immediately pay the debt. 

Under the terms of their settlements, Lashone Elam (also known as Lashone Caldwell); Absolute Financial Services, LLC; Absolute Financial Services Recovery, LLC; AFSR Global Logistics, LLC; and Talesia Neely will be permanently banned from playing any role in debt collection.

They will also be prohibited from making certain misrepresentations to consumers, including whether a consumer owes them a payment, whether they are attorneys or associated with a law firm, or the terms of any refund program.