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Federal Court Rules in Favor of FTC, Halting Illegal Tactics Used to Promote Smoking Cessation, Weight-Loss, and Sexual-Performance Aids
Jason Cardiff (Redwood Scientific Technologies, Inc.)
The FTC’s October 2018 complaint against Redwood Scientific charged the defendants with a scheme that used illegal robocalls to deceptively market dissolvable oral film strips as effective smoking cessation, weight-loss, and sexual-performance aids. Announced in June 2019 as part of a crackdown on illegal robocalls against operations around the country responsible for more than one billion calls, an initial settlement resolved the FTC’s charges against one defendant in the Redwood Scientific case, Danielle Cadiz. The order permanently banned Cadiz from all robocall activities, including ringless voicemails, and imposes a judgment of $18.2 million against Cadiz. In March 2022, the FTC announced the final court orders against all remaining defendants.
Health Research Laboratories, LLC; Analysis of Proposed Consent Order To Aid Public Comment
FTC Halts Deceptive Credit Repair Operation that Filed Fake Identity Theft Complaints
FTC Finalizes Order with Fashion Nova Over Allegations It Blocked Negative Reviews
Turbo Solutions and Alexander Miller, U.S. v.
The FTC obtained an order halting a credit repair scheme that allegedly bilked consumers out of millions of dollars by falsely claiming they will remove negative information from credit reports, while also filing fake identity theft reports to explain negative items on customers’ credit reports.
The Federal Trade Commission’s First Report on E-Cigarette Sales and Advertising Reveals Disturbing Trends Affecting the Health of Young Americans
E-Cigarette Report for 2015-2018
FTC Proposed Order Stops Marketers from Continuing to Promote Supplements Using Baseless Health Claims
Health Research Laboratories, LLC
The FTC and the State of Maine’s complaint against Health Research Laboratories and its principal, announced in November 2017, alleged that the defendants deceptively marketed two of their health products, BioTherapex and NeuroPlus. In November 2018, the FTC mailed 16,596 checks totaling more than $750,000 to consumers who bought the two deceptively marketed supplements. The FTC and State of Maine subsequently filed a motion seeking a contempt order against the defendants in December 2019, for allegedly violating the final Commission order by continued to market and sell dietary supplements with claims that were not supported by competent and reliable scientific evidence. In November 2020, the FTC staff discontinued its contempt action and filed an administrative complaint against the defendants. The FTC announced a proposed order settling the complaint in March 2020.
FTC Imposes Restrictions on Electronic Payment Systems for Opening Merchant Accounts for Fictitious Companies, Assisting a Business Opportunity Scam
FTC Takes Action Against CafePress for Data Breach Cover Up
FTC Charges HomeAdvisor, Inc. with Cheating Businesses, Including Small Businesses, Seeking Leads for Home Improvement Projects
FTC Announces Tentative Agenda for March 17 Open Commission Meeting
Payment Processor that Helped Bogus Discount Clubs Bilk Consumers Will Pay $2.3 Million as a Result of FTC Case
Hornbeam Special Situations, LLC
A payment processing company that allegedly helped a bogus discount club scheme debit tens of millions of dollars from consumers without authorization will be required to pay $2.3 million and face a permanent ban from working with high-risk clients as a result of a Federal Trade Commission lawsuit.
According to the FTC’s complaint in the case, which was first filed in 2017, iStream Financial Services and its senior officers, Kris Axberg and Richard Joachim, allegedly debited money from consumers who were seeking payday or cash advance loans, but were enrolled in a bogus coupon service and charged initial fees up to almost $100 plus as much as $19.95 each month. Consumers were enrolled in the discount club scheme online and through outbound telemarketing.
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