Tag: deceptive/misleading conduct

Resident Home LLC and owner Ran Reske paid $753,000 to settle FTC charges that they made false, misleading, or unsupported advertising claims that their imported DreamCloud mattresses were made from 100% USA-made materials. According to the complaint, although the company and Reske repeatedly claimed in promotional literature that their mattresses were “proudly made with 100 percent USA-made premium quality materials,” all DreamCloud mattresses were finished overseas, and in some cases were wholly imported or used significant imported materials.  On June 14, 2022, the Commission announced the final consent agreement in this matter.

On March 30, 2023, the FTC began sending payments totaling nearly $45,000 to consumers who purchased DreamCloud mattresses sold by Resident Home, LLC, the parent company of Nectar Sleep, which used misleading “Made in USA” claims to pitch its products to consumers. 

In the next few months, the FTC will be contacting an additional 12,300 consumers who bought DreamCloud mattresses and may be eligible for a payment. Consumers who believe that they may be eligible and want more information about the claims process can contact the administrator, JND Legal Administration, at 844-798-0740.

As a result of a Federal Trade Commission lawsuit, Publishers Clearing House (PCH) has agreed to a proposed court order will require it to pay $18.5 million to consumers who spent money and wasted their time, and make substantial changes to how it conducts business online.

In a complaint against PCH, the FTC charges that the company uses “dark patterns” to mislead consumers about how to enter the company’s well-known sweepstakes drawings and made them believe that a purchase is necessary to win or would increase their chances of winning, and that their sweepstakes entries are incomplete even when they are not. The FTC also charges that the company has added surprise shipping and handling fees to the costs of products, misrepresented that ordering is “risk free,” used deceptive emails as part of its marketing campaign, and misrepresented its policies on selling users’ personal data to third parties prior to January 2019. Many consumers affected by these practices are older and lower-income.

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.

The Federal Trade Commission filed a Complaint for Permanent Injunction, Monetary Relief, and Other Relief, for a permanent injunction and other relief, pursuant to Sections 5(a), 13(b), and 19 of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. §§ 45(a), 53(b), and 57b, and the Equal Credit Opportunity Act (“ECOA”), 15 U.S.C. §§ 1691-1691f. The Complaint charges that Defendants participated in deceptive and unfair acts or practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), and the Equal Credit Opportunity Act (“ECOA”) and its implementing Regulation B, 12 C.F.R. § 202, in the advertising, sales, and financing of motor vehicles.

The Federal Trade Commission is sending payments totaling more than $3.3 million to customers of Passport Auto, a Washington D.C.-area auto dealer. In October 2022, the FTC charged Passport with adding hundreds, or even thousands, of dollars in illegal junk fees to car prices and for discriminating against Black and Latino consumers by charging them higher fees and financing costs.

In a case first filed in January 2020, the FTC alleged that Success By Health and its executives James “Jay” Dwight Noland, Jr., Lina Noland, Scott A. Harris, and Thomas G. Sacca were operating an “instant coffee” pyramid scheme that used false promises of wealth and income to entice thousands of consumers to join.

The amended complaint alleges that the defendants were operating an additional pyramid scheme known as VOZ Travel. According to the amended complaint, the defendants sold consumers VOZ Travel “memberships” for at least $1,000 each. In exchange, they allegedly promised consumers access to a discount travel booking platform and the ability to earn rewards for recruiting other consumers to buy memberships. The complaint alleges that the defendants told consumers that some VOZ Travel members would be “making $1.53 [million] per year.”