Tag: Central District of California

The Federal Trade Commission sued the largest U.S. distributor of wine and spirits—Southern Glazer’s Wine and Spirits, LLC (Southern)—alleging the company violated the Robinson-Patman Act, harming small, independent businesses by depriving them of access to discounts and rebates, and impeding their ability to compete against large national and regional chains. This loss of competition ultimately harms consumers on choice and price.

In December 2024, the FTC announced a court order requiring GOAT, a leading online marketplace for sneakers, apparel, and accessories, to pay more than $2 million for violating an agency rule requiring companies to have reasonable shipping practices.

The Federal Trade Commission is taking action against Seek Capital and its founder and CEO, Roy Ferman, for operating a bogus business finance scheme that cost small business owners more than $37 million.

According to a complaint filed by the FTC, the company has targeted new and aspiring small business owners looking for loans or lines of credit to open or grow their businesses. While the company’s advertising implies that business owners would have access to cash, instead Seek charges clients thousands of dollars simply to open credit cards in the owners’ names.

The Federal Trade Commission is taking action against online cash advance app Dave for allegedly using misleading marketing to deceive consumers about the amount of its cash advances, charging consumers undisclosed fees, and charging so-called “tips” to consumers without their consent.

Dave describes the consumers it targets as being “financially vulnerable” or “financially coping,” including those whose spending exceeds their income, who have minimal savings, and who overdraft their bank accounts frequently.

Dave’s advertising is dominated by claims that consumers can receive “up to $500” by using Dave, and that they can do so “instantly.” According to the FTC’s complaint, though, Dave’s service failed to live up to its promises.

The FTC has filed a lawsuit against an online business opportunity scheme that it alleges has falsely claimed its “cutting edge” AI-powered tools would help consumers quickly earn thousands of dollars a month in passive income by opening online storefronts. According to the complaint, the scheme has defrauded consumers of at least $25 million.

According to the FTC’s complaint, the operators of the scheme charge consumers tens of thousands of dollars to start online stores on ecommerce platforms such as Amazon, Walmart, Etsy, and TikTok, while also requiring them to spend tens of thousands more on inventory. Ascend’s advertising content claimed the company was a leader in ecommerce, using proprietary software and artificial intelligence to maximize clients’ business success.

The FTC has taken action against NGL Labs, LLC and two of its co-founders, Raj Vir and Joao Figueiredo, for a host of law violations related to their anonymous messaging app, including unfairly marketing the service to children and teens.

In June 2024, the Federal Trade Commission announced that it took action to stop Prosperity Benefit Services, a student loan debt relief scheme that the agency says bilked more than $20.3 million from consumers seeking debt relief by pretending to be affiliated with the Department of Education. The FTC also charged that the company and its operators falsely claimed that they would take over consumers’ student loans to get them loan forgiveness that did not exist. A federal court temporarily halted the scheme and froze its assets at the request of the FTC, which seeks to end the defendants’ deceptive practices. 

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. 

The Federal Trade Commission has stopped scammers who the agency says facilitated an operation to prey on students seeking debt relief. The agency charges that the defendants pretended to be affiliated with the U.S. Department of Education, used deceptive loan forgiveness promises, and falsely claimed they were offering relief under the “Biden Loan Forgiveness” plan to lure students and collect millions in illegal upfront fees. 

After the FTC filed a complaint seeking to end the deceptive practices, a federal court temporarily halted the operations and froze the assets of Apex Processing Center and its owners.

In February 2024, under proposed orders settling the FTC’s charges, several defendants in the case—including Express Enrollment LLC, Intercontinental Solutions LLC, Ivan Esquivel, and Robert Kissinger were permanently banned from the debt relief industry and were ordered to turn over their assets to the FTC. In April 2024, the ringleader of the scheme, Marco Manzi, was also banned from the industry and was ordered to turn over assets as part of a settlement with the FTC.

The Federal Trade Commission has stopped Mission Hills Federal, a student loan debt relief scheme, alleging it bilked more than $23 million from thousands of consumers with false claims that it would service and pay down their student loans. After the FTC filed a complaint seeking to end the deceptive practices, a federal court temporarily halted the scheme and froze its assets. The FTC filed an amended complaint on August 27, 2019, adding Labiba Velazquez as an alleged defendant. On July 20, 2020, the court granted final summary judgment.

In June 2021, the defendants appealed the District Court’s granting of summary judgment. In June 2022, the Ninth Circuit Court of Appeals issued its decision, rejecting the defendants’ arguments and affirmed the District Court’s grant of summary judgment, ruling in favor of the FTC. In March 2024, the FTC sent more than $4.1 million in refunds to consumers harmed by the defendants. 

The FTC sued to stop a Voice over Internet Protocol (VoIP) provider, XCast Labs, Inc., that continued to funnel hundreds of millions of illegal robocalls through its network, even after receiving multiple warnings.

On January 2, 2024, XCast Labs, Inc., agreed to settle Federal Trade Commission charges that it funneled hundreds of millions of illegal robocalls through its network, even after receiving multiple warnings about the unlawful conduct.

Under the proposed court order, XCast Labs will be required to implement a screening process and end its relationships with firms that are not complying with telemarketing-related laws. The Department of Justice litigated the case and filed the proposed order on the FTC’s behalf.

In November 2023, the FTC announced that California-based CRI Genetics, LLC (CRI) will pay a $700,000 civil penalty and will be barred from a wide range of deceptive practices to settle charges from the Commission and the California Attorney General that the company deceived users about the accuracy of its DNA reports.

In July 2023, the Commission took action under the FTC Act and the OARFPA against the makers of Sobrenix, which was deceptively marketed to reduce and even eliminate alcohol cravings and consumption. As a result of the FTC’s suit, the defendants agreed to a proposed court order permanently banning them from making any unsubstantiated claims about health care products or services, as well as requiring them to pay $650,000 to provide refunds to consumers. In November 2024, the FTC announced it was sending $536,000 in refunds to defrauded consumers who bought the product.

In November 2019, the Federal Trade Commission obtained a temporary restraining order halting an operation that bilked consumers out of millions of dollars by pretending to be affiliated with the U.S. Department of Education and falsely promising student loan debt relief. In September 2020, the FTC announced several of the operators settled FTC charges and agreed to pay at least $835,000. In January 2022, the FTC announced that the remaining defendants in the case are banned from providing student loan debt relief services in settlements with the FTC. The defendants are required to forfeit all of their frozen funds held by the receiver. In June 2023, the FTC sent more than $3.3 million to consumers harmed by this scam.

The Federal Trade Commission has brought lawsuits against three current and former high-level distributors – so-called “Wellness Advocates” – of the Utah-based multi-level marketing company doTERRA International, LLC, for making claims that the company’s essential oils and dietary supplements could treat, prevent, or cure COVID-19. The distributors, all current or former healthcare practitioners, made the claims in a series of webinars in early 2022 and touted their medical expertise in recommending the products.

The three complaints, filed by the Department of Justice on behalf of the FTC, allege that the defendants made numerous claims about the ability of various doTERRA products to prevent, treat, or cure COVID-19, in violation of the FTC Act and the COVID-19 Consumer Protection Act.

In October 2022, a Latvian payment processor and its former CEO agreed to settle the FTC’s complaint against them. The complaint alleged that they engaged in unlawful conduct that enabled a deceptive “free trial” offer scheme by U.S.-based defendants. In September 2024, the FTC returned more than $2.8 million to consumer deceived by the scheme.