Tag: Consumer Protection

On October 21, 2019, the FTC announced it had halted the deceptive online marketing tactics of two companies and their principals, the first of which allegedly sold fake indicators of social media influence, and the second of which allegedly used fake product reviews posted by its employees on a well-known retail website. In the first case, Devumi, LLC and its owner and CEO, German Calas, Jr., agreed to settle the FTC’s first-ever complaint challenging the sale of fake indicators of social media influence. In the second case, cosmetics firm Sunday Riley Modern Skincare, LLC and its CEO agreed to settle an FTC complaint charging them with misleading consumers by posting fake reviews of the company’s products on a major retailer’s website, at the CEO’s direction, and by failing to disclose that the reviewers were company employees. The court entered the final order on October 22, 2019.

The Federal Trade Commission filed suit against cyanoacrylate glue maker Chemence, Inc., and company president James Cooke, for supplying pre-labeled and pre-packaged glues with deceptive “Made in USA” claims to trade customers to use in marketing the strong, fast-acting glues under retailer brand names. The FTC’s complaint  alleges that Chemence and Cooke supplied glues in packages labeled with deceptive unqualified “Made in USA” claims, some with an image of the American flag, for products such as Master Super Glue, JB WELD SuperWeld, Stick Fast Instant CA Adhesive, Pink Gel Nail Glue, SAATI Ultrafix CA – MV, and Kiss Maximum Speed Nail Glue.  The proposed settlement requires Chemence and Cooke to pay $1.2 million to the FTC, the highest monetary judgment ever for a Made in USA case. On Feb. 12, 2021, the Commission announced the final consent agreement in this matter.