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The Federal Trade Commission filed a lawsuit against data broker Kochava Inc. for selling geolocation data from hundreds of millions of mobile devices that can be used to trace the movements of individuals to and from sensitive locations. Kochava’s data can reveal people’s visits to reproductive health clinics, places of worship, homeless and domestic violence shelters, and addiction recovery facilities. The FTC alleges that by selling data tracking people, Kochava is enabling others to identify individuals and exposing them to threats of stigma, stalking, discrimination, job loss, and even physical violence. The FTC’s lawsuit seeks to halt Kochava’s sale of sensitive geolocation data and require the company to delete the sensitive geolocation information it has collected.
In July 2024, a U.S. district court in central Florida unsealed a Federal Trade Commission complaint charging two related groups of defendants with defrauding consumers nationwide by enrolling them, without their knowledge, into continuity plans where they are shipped and charged repeatedly for personal care products that they did not agree to purchase.
The defendants allegedly deceived consumers with ads for “free” CBD and Keto-related personal care products, billing many for products they did not consent to purchase, signing many up for unwanted continuity plans, and debiting money from their bank accounts without prior authorization. In September 2024, the FTC announced three orders settling the Commission’s complaint and requiring the defendants to pay approximately $40 million in total to defrauded consumers.
On Oct. 29, 2018, the Federal Trade Commission filed a complaint in federal court against Simple Health Plans LLC, Steven J. Dorfman, and five other entities, alleging that the defendants misled people to think they were buying comprehensive health insurance that would cover preexisting medical conditions, prescription drugs, primary and specialty care treatment, inpatient and emergency hospital care, surgical procedures, and medical and laboratory testing. On Nov. 1, 2019, the FTC filed an amended complaint adding Candida Girouard as an additional defendant.
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 is taking action against healthcare company Benefytt Technologies, two subsidiaries, former CEO Gavin Southwell, and former vice president of sales Amy Brady, for lying to consumers about their sham health insurance plans and using deceptive lead generation websites to lure them in. According to the FTC complaint, Benefytt also illegally charged people exorbitant junk fees for unwanted add-on products without their permission. The proposed court orders require Benefytt to pay $100 million in refunds and prohibit the company from lying about their products or charging illegal junk fees. Southwell and Brady will be permanently banned from selling or marketing any healthcare-related product, and Brady will also be banned from telemarketing.
In November 2022, the FTC filed a complaint in court seeing civil penalties against California-based Precision Patient Outcomes, Inc. and the company’s CEO Margrett Priest Lewis for marketing an over-the-counter dietary supplement containing nothing more than vitamins, zinc, and a flavonoid as an effective treatment to mitigate the effects of COVID-19. In February 2024, the FTC announced an order settling its allegations that bars the defendants from the alleged deceptive practices.
The Federal Trade Commission filed suit against American Screening for failing to deliver on promises that it could quickly ship products like face masks, sanitizer, and other personal protective equipment (PPE) related to the coronavirus pandemic.
The lawsuits allege that the companies violated the FTC’s Mail, Internet and Telephone Order Rule (Mail Order Rule), which requires that companies notify consumers of shipping delays in a timely manner and give consumers the chance to cancel orders and receive prompt refunds.
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