Nine months after filing an amended complaint, the FTC and Florida Attorney General have filed papers seeking entry of agreed permanent injunctions and monetary judgments against numerous defendants involved in an alleged nationwide debt relief telemarketing scam. The proposed settlements resolve allegations that the defendants violated the FTC Act, the Telemarketing Act, the Telemarketing
Federal Trade Commission (FTC)
FTC Approves Final Settlement Against Cloud-Based Health Records Platform Provider
The FTC has approved a final settlement against Practice Fusion, Inc., a company that describes itself as the “number one cloud-based electronic health record platform for doctors and patients.” The FTC had alleged that Practice Fusion failed to adequately disclose that patient responses to an online healthcare provider satisfaction survey would be published on Practice…
FTC Announces $200 Million Settlement with Herbalife, Requires Restructured Business Model
The FTC announced that it has reached a settlement with Herbalife that includes a $200 million payment to compensate consumers. In addition to the payment, the settlement agreement has an unusual provision requiring a complete restructuring of Herbalife’s existing business model.
In its complaint against the company, the FTC alleges that Herbalife claimed that people …
FTC Consent Order With Two Ohio Auto Dealers Resolves Misleading Advertising Claims
On July 14, the Federal Trade Commission announced that it had entered into a final consent order with Ohio auto dealers Progressive Chevrolet Company and Progressive Motors Inc. (collectively, the “Progressive Dealers”), which the FTC had “charged with deceiving consumers by using advertising that touted low monthly car lease payments and down payments but failed …
FTC Approves Increasing Civil Penalty Amounts
The FTC recently approved increases to the maximum civil penalty amounts available for violations of statutes subject to FTC enforcement. The Federal Civil Penalties Inflation Adjustment Act of 2015 authorizes increases affecting sixteen statutes under FTC enforcement authority.
The amended maximums take effect August 1, 2016.
New maximum civil penalties for the following violations will…
FTC and Florida Attorney General Settle with Lead Generator Over Technical Support Scam
On July 13, the FTC filed a proposed settlement agreement in the United States District Court for the Southern District of Florida between a group of lead generators and the FTC and the Office of the Florida Attorney General. The named lead generators included PC Cleaner, Inc.; Netcom3 Global, Inc.; Netcom 3, Inc., …
Don’t Call Me (Maybe): FTC Telemarketing Sales Rule Amendments Limiting Payment Methods Available to Telemarketers Go Into Effect
On June 27, the Federal Trade Commission issued an alert regarding new amendments to the Telemarketing Sales Rule (“TSR”) that are now in effect. The new amendments prohibit telemarketers from using three types of commonly abused payment methods: cash-to-cash money transfers (such as MoneyGram), PIN numbers from cash reload cards …
FTC Announces $950K Penalty for Deceptive Tracking by Singapore-based Mobile Ad Company
The Federal Trade Commission (“FTC”) issued a press release last week announcing it has assessed $950,000 in civil penalties against Singapore-based mobile advertising company InMobi for alleged violations of the FTC Act and the Children’s Online Privacy Protection Act of 1998 (“COPPA”). The penalty is part of InMobi’s settlement with the FTC over allegations that…
FTC Gets $27 Million Settlement and Continues Trend of Targeting Tech Support Scammers
The Federal Trade Commission (“FTC”) and Florida have settled charges against Vast Tech Support LLC, OMG Tech Help, their founder and COO Mark Donohue, and related companies regarding claims of deceptive marketing of computer software and tech support services. The settlement continues the FTC’s trend of enforcement actions that target scammers who scare consumers into…
FTC Hosts FinTech Forum on Marketplace Lending
On June 10, Troutman Sanders attended the Federal Trade Commission’s FinTech Forum on marketplace lending. The event marked the first in the FTC’s FinTech Forum series, which is part of the FTC’s ongoing efforts to examine marketplace lending and its impact on consumers. The topics discussed during the forum included adequate …