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FTC sends $149 million in refunds to people harmed in alleged AdvoCare pyramid scheme

Seena Gressin
The FTC is returning more than $149 million to people who lost money to AdvoCare International , a former multi-level marketer that the FTC says operated a pyramid scheme disguised as a business opportunity and swindled hundreds of thousands of people who signed up to be distributors of its health-and-wellness products. The FTC sued Texas-based AdvoCare, its former CEO, and its top promoters in 2019, alleging the defendants deceived people into...

Telemarketing Sales Rule: We asked. You answered. We heard you.

Lesley Fair
T he FTC has proposed some changes to the T elemarketing Sales Rule and would like your feedback. But that’s not all. Commenters raised a number of other issues about TSR compliance and enforcement. So the FTC is publishing a separate Advance Notice of Proposed Rulemaking seeking your input on whether additional changes are warranted to strengthen the protections of the Rule. Both Notices merit your attention, especially proposals that...

FTC bids good night to deceptive day trading earnings claims

Lesley Fair
For people looking to gain a financial foothold, promises of $100,000 or more in “verified profits” in “under 45 days” are understandably alluring. But all too often what begins as a Siren’s Song ends in a Swan Song as people lose their life savings to the promoters of bogus schemes. The FTC has announced a $3 million settlement with an outfit known as Warrior Trading and its CEO Ross Cameron for using allegedly misleading investment claims to...

Cremation companies exploit grieving consumers, alleges FTC

Lesley Fair
Even the savviest consumers can be at their most vulnerable when making final arrangements for a loved one. They have to make quick decisions – often choices with major financial implications – while grieving the death of someone close to them. In a lawsuit filed on the FTC’s behalf by the Department of Justice , the FTC alleges that Colorado- and North Carolina-based Legacy Cremation Services, also doing business as Heritage Cremation Provider...

What the pandemic has taught businesses about the collection of health information

Megan Cox, Attorney, FTC Division of Privacy & Identity Protection
As businesses, government agencies, and nonprofits reopen and employees return to in‑person offices, many pandemic safety measures are being modified. If your company checked employees’ or customers’ vaccine status or collected other COVID-related information, have you considered what to do with the data now? Businesses that maintain that information or that developed apps or other products to facilitate its collection can pass along an important...

FTC prescribes remedy for practices of for-profit medical school

Lesley Fair
Saint James Infirmary is a haunting tune recorded by jazz legends like Louis Armstrong and Cab Calloway. Saint James School of Medicine is a for-profit operation in the Caribbean run by U.S. defendants. The two don’t have much in common except for this: Both have left people feeling the blues. In its latest challenge to illegal practices in the for-profit education sector, the FTC has charged that Park Ridge, Illinois-based Saint James School of...

FTC charges battery maker in first case under Made in USA Labeling Rule

Lesley Fair
For people who prefer to buy Made in USA merchandise, products from Lithionics Battery LLC seemed like an attractive option. According to the FTC, Lithionics and General Manager Steven Tartaglia used phrases and American flag images to convey a Made in USA marketing message for their battery, battery module, and battery management system products. But don’t wave Old Glory just yet. As the FTC’s first action under the new Made in USA Labeling Rule...

$5.5 million total FTC settlements with Kohl’s and Walmart challenge “bamboo” and eco claims, shed light on Penalty Offense enforcement

Lesley Fair
For consumers shopping for textiles for the home, products promoted as made from bamboo are a popular draw. But the FTC says some items advertised by global retailers Kohl’s and Walmart as “bamboo” were actually made of rayon. According to separate FTC settlements , the companies’ misleading representations violated the FTC Act and the Textile Act. In addition, the FTC says Kohl’s and Walmart engaged in “ greenwashing ” by making deceptive eco...

Record-setting $10 million FTC-Illinois settlement takes on car dealers’ unauthorized add-ons and discriminatory lending practices

Lesley Fair
A rose is a rose is a rose, but for many consumers who go car shopping, the price isn’t the price isn’t the price. A record-setting $10 million settlement announced by the FTC and the State of Illinois alleges that North American Automotive Services – car buyers in Illinois, Florida, Pennsylvania, and Missouri know them by the dealership name Napleton – used a host of deceptive and unfair tactics related to hidden fees for add-ons like service...

Point of no return: FTC challenges Intuit’s “free” filing claims for TurboTax as deceptive

Lesley Fair
As businesses know, “free” is a word that attracts consumers’ attention year-round. As Tax Time approaches, it’s a particular draw for people who want to file their taxes for free. Intuit – the company that advertises and markets TurboTax – prominently promotes “free” filing, including in TV ads where pretty much the only spoken word is “free.” But according to a complaint filed by the FTC , Intuit has engaged in deceptive practices surrounding...