Tag: deceptive/misleading conduct

As a result of a Federal Trade Commission lawsuit, the operators of an alleged credit card debt relief scheme based in Tennessee have agreed to court orders that would permanently ban them from telemarketing and selling debt relief products or services.

Sean Austin, John Steven Huffman, John Preston Thompson, and their affiliated companies were charged by the FTC in November 2022 with taking tens of millions of dollars from people by falsely promising to eliminate or substantially reduce their credit card debt. At the time, a federal court agreed to the FTC’s request to temporarily freeze the defendants’ assets and appoint a receiver over the businesses while the case took place.

The U.S. District Court for the Middle District of Tennessee, Nashville Division, entered the final orders on April 28, 2023.

In January 2025, the FTC sent more than $5 million in refunds to consumers harmed by a deceptive credit card debt relief scheme known as ACRO Services.

The Federal Trade Commission has obtained proposed orders against the operators of a wide-ranging scheme known as “The Sales Mentor” that made millions by falsely promising consumers that they could make big money from telemarketing sales.

The defendants have agreed to proposed court orders that would require them to pay a total of $1 million for consumer refunds.

In a federal court complaint, the FTC charged the Tennessee-based group of companies, their owners, their officers, and a former sales director with deceiving consumers to pay hundreds or even thousands of dollars for supposed telemarketing training programs that rarely, if ever, delivered on what was promised. In addition, the FTC said the companies continued to make deceptive earnings claims even after they received the FTC’s Notices of Penalty Offenses on money-making opportunities and on endorsements and testimonials warning them that such conduct is illegal.

In January 2025, the FTC sent more than $960,000 in refunds to consumers who paid a job scheme known as “The Sales Mentor” that, according to the FTC, falsely promised consumers that they would make big money from telemarketing sales.  

The sellers of a supposed N95-grade face mask called the Zephyr will pay more than $1.1 million to provide full refunds to consumers nationwide, as well as a civil penalty, under a proposed settlement the Federal Trade Commission announced today. The order settling the complaint also bars Razer, Inc., from making COVID-related health misrepresentations or unsubstantiated health claims about protective health equipment and requires them to pay a civil penalty of $100,000. In January 2025, the FTC announced it was returning more than $1 million to defrauded consumers.

The Federal Trade Commission is taking action against tax preparation company H&R Block for unfairly deleting consumers’ tax data and requiring them to contact customer service when they downgrade to more affordable online products, and deceptively marketing their products as “free” when they were not free for many consumers. These practices cost consumers time and money.

A proposed FTC settlement would stop H&R Block from unfairly requiring consumers seeking to downgrade to a cheaper H&R Block product to contact customer service, from unfairly deleting users' previously entered data and from making deceptive claims about “free” tax filing.

The tax-filing company has agreed to a proposed settlement that will require the company to make a number of changes for the 2025 tax filing season in addition to longer-term changes. The settlement would also require the company to pay $7 million to the FTC to be used to redress consumers harmed by the company’s unlawful practices.

In January 2025, The Federal Trade Commission finalized an order requiring the tax preparation company H&R Block to make a number of changes for the 2025 tax filing season in addition to longer-term changes. The settlement also requires the company to pay $7 million to be used to compensate consumers harmed by the company’s unlawful practices.