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DK Automation

The Federal Trade Commission is taking action against DK Automation and its owners, Kevin David Hulse and David Shawn Arnett for using unfounded claims of big returns to entice consumers into moneymaking schemes involving Amazon business packages, business coaching, and cryptocurrency. The FTC’s complaint alleges that the defendants promised consumers that they could “generate passive income on autopilot” when the truth was that few consumers ever made money from these schemes.

A proposed court order would require the defendants to turn over $2.6 million to be used to refund consumers harmed by their deception, as well as requiring them to stop their deceptive earnings pitches and follow the law.

The Federal Trade Commission is sending $2.8 million in refunds to consumers who were harmed by DK Automation and its owners, Kevin David Hulse and David Shawn Arnett, who used unfounded claims of big returns to entice consumers into moneymaking schemes involving Amazon and Walmart business packages, business coaching, and cryptocurrency.

Type of Action
Administrative
Last Updated
Case Status
Pending

Rite Aid Corporation, FTC v.

Rite Aid is prohibited from using facial recognition technology for security or surveillance purposes for five years to settle Federal Trade Commission charges that the retailer failed to implement reasonable procedures and prevent harm to consumers in its use of facial recognition technology in hundreds of stores.

The proposed order requires Rite Aid to implement comprehensive safeguards to prevent these types of harm to consumers when deploying automated systems that use biometric information to track them or flag them as security risks. It also requires Rite Aid to discontinue using any such technology if it cannot control potential risks to consumers. To settle charges it violated a 2010 Commission data security order by failing to adequately oversee its service providers, Rite Aid is also required to implement a robust information security program, which must be overseen by the company’s top executives.

Type of Action
Federal
Last Updated
FTC Matter/File Number
2023190
Docket Number
2:23-cv-5023
Case Status
Pending

Automators

As a result of a Federal Trade Commission lawsuit, a federal court has temporarily shut down a business opportunity scheme that lured consumers to invest $22 million in online stores, using unfounded claims about income and profits. The operators of Automators also claimed to use artificial intelligence to ensure success and profitability for consumers who agreed to invest with Automators.

In addition to offering consumers high return as “passive investors” in profitable e-stores, Automators, which previously used the names Empire and Onyx Distribution, also offered to teach consumers how to successfully set up and manage e-stores themselves using a “proven system” and the powers of artificial intelligence.

The owners of a money-making scheme that claimed to use artificial intelligence to boost earnings for consumers’ e-commerce storefronts have agreed to surrender millions in assets to settle the FTC’s case against them. In addition, all the businesses and two of their owners face a lifetime ban on selling business opportunities or coaching programs involving ecommerce stores.

Type of Action
Federal
Last Updated
Case Status
Pending

ExotoUSA LLC

The Federal Trade Commission is taking action against Florida-based ExotoUSA LLC. (d/b/a Old Southern Brass) for falsely claiming that certain company products were manufactured in the U.S, and that the company was veteran-operated and donated 10 percent of its sales to military service charities.

The FTC’s proposed order would stop the company and its owner, Austin Oliver, from making these deceptive claims and require them to pay a monetary judgment.

According to the FTC’s complaint, Old Southern Brass made many claims on its website and advertising that the products it sold were made in the United States.

Type of Action
Administrative
Last Updated
FTC Matter/File Number
232 3035
Case Status
Pending