FTC Sending Refund Checks Totaling More Than $11.6 Million to Businesses and Organizations That Paid for Unordered Office and Cleaning Supplies

The Federal Trade Commission is mailing 29,333 refund checks totaling more than $11.6 million to small businesses and other organizations defrauded by a Maryland-based office supply operation that used names such as Midway Industries and Standard Industries. The FTC charged that the operation tricked companies and non-profits into paying for light bulbs and cleaning supplies they never ordered. The average check amount is $396.

In July 2014, the FTC filed a complaint alleging the defendants called organizations nationwide and falsely told them that they had previously done business with them; that the call was to confirm a shipping or mailing address or follow up on a supposed previous order; that they were offering a free sample, catalog or gift; or that they needed an employee’s name and contact information for some purpose other than a sale.

Many people paid the defendants’ invoices, thinking the employee named on the invoice had ordered the merchandise. Organizations that paid one invoice became targets for future shipments of unordered merchandise.

In the summer of 2016, the U.S. District Court for the District of Maryland entered settlement or default orders against all the defendants on the FTC charges. The orders barred them from the illegal conduct alleged in the complaint and imposed financial judgments, which the Commission is now using to provide refunds.

Epiq, the refund administrator for this matter, will begin mailing checks today. Recipients should cash their checks within 60 days, as indicated on the check. The FTC never requires consumers to pay money or provide information to cash refund checks. Consumers who have questions about the mailing should call 1-855-424-2580.

FTC law enforcement actions led to more than 2.3 billion in refunds for consumers in a one-year period between July 2017 and June 2018. To learn more about the FTC’s refund program, visit www.ftc.gov/refunds.

The Federal Trade Commission works to promote competition, and protect and educate consumers. You canlearn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs, and subscribe to press releases for the latest FTC news and resources.

IR Press

Recent Posts

OCC Announces Enforcement Actions for November 2024

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today released enforcement actions taken against…

19 hours ago

Treasury Sanctions Gazprombank and Takes Additional Steps to Curtail Russia’s Use of the International Financial System

Treasury imposes sanctions on dozens of Russian banks, securities registrars, and finance officials; OFAC issues…

1 day ago

Acting Comptroller Testifies on State of the Federal Banking System

WASHINGTON—Acting Comptroller Michael J. Hsu today testified on the state of the federal banking system…

2 days ago

Remarks by Assistant Secretary for International Finance Brent Neiman on the U.S. Cross-Border Payments Agenda

As Prepared for Delivery Thank you very much for the opportunity to be here today, and…

3 days ago

Remarks by Assistant Secretary for Investment Security Paul Rosen at the Third Annual CFIUS Conference

As Prepared for Delivery Good afternoon.  I’d like to start by thanking our panelists today for…

3 days ago