Legal Library: Cases and Proceedings

The Federal Trade Commission finalized five separate proposed administrative complaints and orders enforcing the Consumer Review Fairness Act (CRFA), which prohibits businesses from using form contract provisions that bar consumers from writing or posting negative reviews online, or threatening them with legal action if they do. These are the first five Commission actions exclusively focused on enforcing the CRFA, with the complaints filed against: 1) A Waldron HVAC, LLC and its owner, Thomas J. Waldron; 2) National Floors Direct, Inc. (NFD); 3) LVTR LLC (LTVR) and its owner, Tomi A. Truax; 4) Shore to Please Vacations LLC; and 5) Staffordshire Property Management, LLC. Each respondent agreed to separate final Commission orders barring them from using such non-disparagement clauses in form contracts for goods and services, and requiring them to notify consumers who signed such contracts that the prohibited text is not enforceable. The FTC sent two letters in response to public comments in the Staffordshire matter.

The Federal Trade Commission finalized five separate proposed administrative complaints and orders enforcing the Consumer Review Fairness Act (CRFA), which prohibits businesses from using form contract provisions that bar consumers from writing or posting negative reviews online, or threatening them with legal action if they do. These are the first five Commission actions exclusively focused on enforcing the CRFA, with the complaints filed against: 1) A Waldron HVAC, LLC and its owner, Thomas J. Waldron; 2) National Floors Direct, Inc. (NFD); 3) LVTR LLC (LTVR) and its owner, Tomi A. Truax; 4) Shore to Please Vacations LLC; and 5) Staffordshire Property Management, LLC. Each respondent agreed to separate final Commission orders barring them from using such non-disparagement clauses in form contracts for goods and services, and requiring them to notify consumers who signed such contracts that the prohibited text is not enforceable. The FTC sent two letters in response to public comments in the Staffordshire matter.

The Federal Trade Commission finalized five separate proposed administrative complaints and orders enforcing the Consumer Review Fairness Act (CRFA), which prohibits businesses from using form contract provisions that bar consumers from writing or posting negative reviews online, or threatening them with legal action if they do. These are the first five Commission actions exclusively focused on enforcing the CRFA, with the complaints filed against: 1) A Waldron HVAC, LLC and its owner, Thomas J. Waldron; 2) National Floors Direct, Inc. (NFD); 3) LVTR LLC (LTVR) and its owner, Tomi A. Truax; 4) Shore to Please Vacations LLC; and 5) Staffordshire Property Management, LLC. Each respondent agreed to separate final Commission orders barring them from using such non-disparagement clauses in form contracts for goods and services, and requiring them to notify consumers who signed such contracts that the prohibited text is not enforceable. The FTC sent two letters in response to public comments in the Staffordshire matter.

The Federal Trade Commission reached settlements with a group of St. Louis-based defendants who used deceptive Internet pop-up ads to trick consumers into buying unnecessary technical support services.

Equifax, Inc. agreed to pay at least $575 million, and potentially up to $700 million, as part of a global settlement with the Federal Trade Commission, the Consumer Financial Protection Bureau (CFPB), and 50 U.S. states and territories to settle allegations that the credit reporting company's failed to take reasonable steps to secure its network. 

The FTC is mailing 53,595 refund checks totaling $748,070 to consumers nationwide who signed up for an online auction kit that was supposed to be free, but wasn’t. The kit actually cost consumers up to $59.95 per month if they failed to cancel a trial membership in a business opportunity program called Online Supplier.

In November 2018, the Federal Trade Commission filed a complaint against recidivist Tuan Duong, among others, alleging he falsely promised to reduce students’ monthly loan payments or to eliminate or reduce their educational debts, but widely failed to deliver those services. The defendants also allegedly promoted a 96 percent success rate in reducing consumers’ student loan payments. In fact, the FTC alleged, the consumers who purchased these services often did not receive any debt relief and lost hundreds of dollars. The FTC alleged that the defendants charged consumers illegal upfront fees of $300 or more for these purported debt relief services. A federal court temporarily halted the scheme and froze its assets.

In May 2019, Duong, the ringleader of the scheme, agreed to settle the Commission’s charges that he bilked $11 million from consumers who were trying to reduce their student loan monthly payments or get loan forgiveness. Under the modified court order, Duong admits he violated the 2016 order and is now banned from the telemarketing industry. The proposed modified final order against Duong contains both injunctive and monetary relief. The order contains an $11,000,215.25 judgment as compensatory relief to the FTC and permanently bans Duong from the telemarketing industry.

In July 2019, both Avitia-Pena, president of Impetus Enterprise, Inc., and Jimmy Calderon, manager of Capital Sun Investments, LLC, settled the FTC’s charges alleging they conducted student loan debt relief operations associated with Duong. The $11 million settlement to be paid by Avitia-Pena represents gross revenues of Impetus Enterprise Inc.’s student loan debt relief operation. The order against Calderon and Capital Sun Investments contains a suspended judgment for $1.3 million, the gross revenues of Capital Sun Investments, LLC’s operation.