Tag: Bureau of Consumer Protection

In April 2025, the FTC issued a proposed order requiring Workado, LLC to stop advertising the accuracy of its artificial intelligence (AI) detection products unless it maintains competent and reliable evidence showing those products are as accurate as claimed. The settlement will be subject to public comment before becoming final.

In January 2025, the FTC announced a complaint and proposed order require software provider accessiBe to pay $1 million to settle allegations that it misrepresented the ability of its AI-powered web accessibility tool to make any website compliant with the Web Content Accessibility Guidelines (WCAG) for people with disabilities. The Commission approved the order as final in April 2025.

In October 2021, the FTC sued Xlear, Inc., a Utah-based company, for violating the COVID-19 Consumer Protection Act, alleging that it falsely pitched its saline nasal sprays as an effective way to prevent and treat COVID-19. DOJ filed the complaint on the FTC’s behalf. In March 2025, the DOJ agreed to dismiss the case with prejudice. 

The Federal Trade Commission, jointly with the Department of Justice and the U.S. Food and Drug Administration, have sued a New York-based marketer of herbal tea, seeking to permanently block deceptive ads that claim its Earth Tea is clinically proven to treat, cure, and prevent COVID-19.

At the request of the Federal Trade Commission, a federal court temporarily halted  a business opportunity scheme known as Click Profit, which took millions from consumers by falsely promising consumers that they could earn big profits through online sales.

In a complaint, the FTC alleged that Click Profit and its owners deceived consumers by promising they could make large sums in “passive income” using a proprietary system powered by artificial intelligence. The system supposedly enables consumers to sell goods through online platforms such as Amazon, Walmart, and TikTok. Click Profit also deceived consumers by claiming to be affiliated with major companies like Nike and Disney as a ploy to convince consumers to turn over tens of thousands of dollars each, according to the complaint.

In July 2024, the FTC took action against online used car dealer Vroom for misrepresenting that it thoroughly examined all vehicles before listing them for sale and failing to obtain consumers’ consent to shipment delays or provide prompt refunds when cars weren’t delivered in the time Vroom promised. The company agreed to a proposed settlement that would require the company to pay $1 million to refund consumers harmed by the company’s conduct.

In March 2025, the FTC sent more than $934,000 in refunds to consumers who were harmed by online used car dealer Vroom’s shipment delays.