FTC Enforcement

March 20, 2015

The FTC mailed 10,620 refund checks totaling more than $416,000 to consumers who lost money buying two skin creams marketed by L’Occitane, Inc., which falsely claimed the creams had “body slimming” capabilities. The refunds are being made from money collected under a January 2014 settlement order with the company, which also agreed to stop making deceptive claims that its Almond Beautiful Shape and Almond Shaping Delight skin creams have body-slimming capabilities and are clinically proven. FTC

March 18, 2015

The FTC mailed 17,606 refund checks totaling $954,828 to consumers who lost money buying a supposedly superior calcium supplement, AdvaCAL, marketed by Lane Labs-USA Inc. The refunds are being made from money collected under a 2010 U.S. Court of Appeals ruling and 2011 district court decision finding Lane Labs in contempt of a 2000 order, based on the company’s false and unsubstantiated claims for the supplement. Lane Labs claimed that AdvaCAL was the only calcium supplement that could increase bone density, and was on par or superior to prescription drugs used to treat osteoporosis. FTC

March 11, 2015

The FTC charged DIRECTV, the country’s largest provider of satellite television services, with deceptively advertising a discounted 12-month programming package because it failed to clearly disclose that the package requires a two-year contract. In addition, DIRECTV did not clearly disclose that the cost of the package will increase by up to $45 more per month in the second year, and that early cancellation fees of up to $480 apply if consumers cancel the package before the end of the two-year period. FTC

March 5, 2015

A direct marketing company, Allstar Marketing Group, LLC, selling “as-seen-on-TV” type products such as Snuggies and the Magic Mesh door cover, has agreed to pay $7.5 million to the FTC for consumer restitution to settle charges in connection with its deceptive “buy-one-get-one-free” promotions. The FTC’s settlement was reached alongside a separate action by the New York State Office of the Attorney General. FTC

February 27, 2015

Identity theft topped the FTC’s national ranking of consumer complaints for the 15th consecutive year, while the agency also recorded a large increase in the number of complaints about so-called “imposter” scams, according to the FTC’s 2014 Consumer Sentinel Network Data Book. FTC

February 23, 2015

The FTC has challenged marketers of “melanoma detection” apps, MelApp and Mole Detective, for deceptively claiming their mobile apps could detect symptoms of melanoma, even in its early stages, without scientific evidence to back up its claims. FTC

February 13, 2015

The FTC approved a final order against Dallas auto dealer TXVT Limited Partnership (doing business as Trophy Nissan) involving deceptive advertising charges. Under the settlement, Trophy is prohibited from misrepresenting in any advertisement the material terms of any promotion or other incentive, including that it will pay off a consumers’ trade-in or the cost of leasing or purchasing a vehicle. Trophy is also prohibited from failing to clearly and conspicuously disclose material terms of its promotions or other incentives and must comply with the Consumer Leasing Act and Regulation M and the Truth in Lending Act and Regulation Z. FTC

February 11, 2015

The FTC named Sereika Savariau and Lawrence Goodison in a case against a phony debt relief and credit repair scheme that allegedly deceived consumers about non-existent federal programs to pay off their bills and fix poor credit. The case was originally brought in August 2014 against the American Bill Pay and American Benefits Foundation. The amended complaint was accepted by the court, and the case remains in litigation. The FTC is seeking to have the scam permanently shut down, and obtain refunds for consumers who paid for the scammers’ bogus debt and credit services. FTC

February 9, 2015

The FTC obtained a $9.5M judgment against sweepstakes promoter Crystal Ewing for deceptively enticing consumers in the U.S., Canada and the United Kingdom to send money to collect large cash prizes that, in fact, did not exist. FTC

February 5, 2105

A group of Utah-based defendants led by Philip J. Danielson and his company, Danielson Law Group, settled FTC charges that they broke the law by conning consumers into paying hefty fees for worthless mortgage relief services. The five proposed orders settling the FTC’s charges ban the defendants from offering mortgage assistance relief services and from participating in the debt relief industry. According to the FTC, defendants lured consumers into paying $500 to $3,900 by falsely promising that attorneys would negotiate loan modifications that would substantially reduce the consumers’ mortgage payments. The complaint also alleged that the defendants used the name Danielson Law Group and other attorney or law firm names to look like they had lawyers all over the country, even though many consumers never met or spoke to an attorney. FTC