A leading U.S. distributor of prepaid calling cards has agreed to pay $1.3 million to settle Federal Trade Commission charges that the calling cards failed to deliver the number of minutes advertised. In tests conducted by the FTC, the calling cards on average provided less than half of the advertised calling minutes. The settlement resolves […]
Tag Archives: Consumer Protection
Commission Files Amended Complaint in Federal Loan Modification Law Center Case
The FTC filed an amended complaint adding several new defendants in the action currently pending against Federal Loan Modification Law Center, LLP, and six related defendants. The original complaint, filed on April 3, 2009, charged the defendants with misrepresenting that in exchange for a large up-front fee, they will obtain a mortgage loan modification or […]
FTC Urges Consumers to Report Jamaica-based Telemarketing Scams
The Federal Trade Commission and other law enforcement agencies in the United States and Jamaica are turning up the heat on Jamaica-based telemarketing scammers. The rip-off artists pose as lawyers, customs officials, or lottery representatives, and target U.S. residents with phony promises of sweepstakes or lottery winnings. According to the FTC, U.S. Immigration and Customs […]
‘Credit Repair’ Operation Settles with FTC; Company Made False Claims and Charged Illegal Up-Front Fees
A federal court has ordered a credit repair operation and its principals to stop making false claims and requiring advance payment for credit repair services. The agreed-upon court orders are a result of a settlement between the Federal Trade Commission and the “credit repair” defendants. The Commission sued the defendants in October 2008 as part […]
FTC Settles with Two Defendants in Bogus Computer Scan Case
Two defendants in a case involving a massive “scareware” scheme will settle Federal Trade Commission charges of deceptive advertising and forfeit more than $100,000 in assets that were frozen last year at the Commission’s request. The two settling defendants were part of a massive deceptive advertising scheme that tricked more than a million consumers into […]
FTC Roundtable to Discuss Debt Collection Litigation and Arbitration; Call for Public Comments
The Federal Trade Commission and the Searle Center on Law, Regulation, and Economic Growth at Northwestern University School of Law will host a two-day public event on consumer protection issues in debt collection proceedings against individual consumers. This will be the first in a series of FTC roundtable discussions on these topics. WHAT: “Protecting Consumers […]
FTC Stops Foreclosure Prevention Marketers Who Misrepresented Their Services and Misled Business Opportunity Buyers
At the request of the Federal Trade Commission, a federal court has halted a bogus mortgage foreclosure prevention operation that misrepresented both the “loss mitigation” services it offered and the earnings potential of the business opportunity it sold. The FTC seeks to end this deceptive scheme and make the defendants give up their ill-gotten gains. […]
Churches at Risk in Bogus Opportunity Scam
Con artists are hawking what they claim is a golden opportunity for churches: Free equipment or services. Often targeting African American churches, these scammers may profess a shared faith, culture, or concern for the community to gain the trust of the church staff. In a common scheme, scammers may offer computer equipment to the staff […]
FTC Provides Views on Behavioral Advertising to House of Representatives Subcommittees
The Federal Trade Commission today sent a copy of a recent staff report, “Self-Regulatory Principles for Online Behavioral Advertising,” to two subcommittees of the House of Representatives Committee on Energy and Commerce that are holding a joint hearing on behavioral advertising. A letter on behalf of the Commission that accompanied the report states that the […]
Constellation Brands Settles FTC Charges That Ads for ‘Wide Eye’ Caffeinated Alcohol Beverage Were Deceptive
A major U.S. alcohol supplier has agreed to settle Federal Trade Commission charges that its advertising for the caffeinated alcohol drink Wide Eye was deceptive, unsubstantiated, and in violation of federal law. The proposed settlement bars Constellation Brands, Inc. – which claimed in its ads that consumers who drink Wide Eye will remain alert when […]