FTC Wins $5.2 Million Judgment against Defendants Who Tricked Consumers with Ads for Non-existent Rental Properties and 'Free' Credit ReportsMoney will be returned to consumers
A federal judge has ordered Credit Bureau Center, LLC and its owner, Michael Brown, to pay more than $5.2 million to return to consumers, to resolve FTC charges that they deceived people with fake rental property ads and deceptive promises of “free” credit reports, and then tricked them into enrolling into a costly monthly credit monitoring service.
Brown and his company, formerly known as MyScore LLC, and their co-defendants placed Craigslist ads for rental properties that did not exist or that they had no right to offer for rent. They impersonated property owners and offered property tours if consumers would first obtain credit reports and scores from their websites. These sites claimed to provide “free” credit reports and scores, but then enrolled consumers in a credit monitoring service with monthly charges of $29.94. Many people did not realize they were enrolled until they noticed unexpected charges on their bank or credit card statements, sometimes after several billing cycles.
At the FTC’s request, a federal court halted the scheme during litigation. In October 2017, the FTC obtained a court order that required Brown’s co-defendants Danny Pierce and Andrew Lloyd to pay a total of $762,000 to resolve the charges against them.
The order announced today grants the FTC’s motion for summary judgmentand enters a final judgment and order against Brown and his company, finding they violated the FTC Act, the Restore Online Shoppers’ Confidence Act, the Fair Credit Reporting Act, and the Free Annual File Disclosures Rule.
As part of the $5.2 million judgment, the court entered a permanent injunction that bans Brown and his company from selling any credit monitoring service with a negative option feature, and from misrepresenting material facts about any product or service. The order also specifies how they must monitor their affiliate marketers in the future. For example, they must require certain information from affiliates, including their name and location, and advance copies of all marketing materials. They also must investigate any complaints about affiliate marketers and end the affiliation if they find practices the order prohibits.
The order requires Brown and his company to make certain disclosures when selling any product or service with a negative option feature, and when offering free credit reports. It also bars them from using billing information to obtain payments from consumers without first obtaining their express informed consent.
In addition, the order prohibits Brown and his company from profiting from consumers’ personal information obtained as part of the scheme and failing to dispose of it properly.
The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn 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.
FTC Halts Online Marketers Responsible for Deceptive “Free Trial” Offers
Consumers charged for supposedly “free trials” and enrolled in costly continuity plans
A federal district court has granted the Federal Trade Commission’s request to stop a group of San Diego-based Internet marketers from deceptively advertising free trial offers and not only charging consumers full-price for the trial product, but also enrolling them in expensive, ongoing continuity plans without their knowledge or consent. The court order announced today temporarily halts the operation, freezes its assets, and appoints a temporary receiver over the business.
According to the FTC’s complaint, the defendants market and sell a variety of products online, including skin creams, electronic cigarettes, and dietary supplements. Advertising through third-party websites, blog posts, and surveys, the defendants allegedly offer consumers “RISK FREE” trials of products such as “Wrinkle Rewind,” “Erase Repair H/A,” “Pro Vapor,” “Cerebral X,” “Test X Core,” and “Garcinia Clean XT.”
Consumers who click on these advertisements are taken to the defendants’ websites, which, the complaint alleges, claim to offer trials of these products for just the cost of shipping, which is typically $4.95 or less. The complaint states, however, that consumers who order the free trial wind up being charged as much as $98.71 for the trial shipment, and are also enrolled in a negative-option continuity plan without their consent under which they receive an additional shipment each month and are charged full price for each shipment.
In addition, the FTC alleges the defendants use deceptive order confirmation pages to trick consumers into ordering additional products, for which the defendants similarly charge consumers full price and enroll them in negative-option plans. The defendants then make it difficult to cancel the continuity plan, stop or avoid the recurring charges, or obtain a refund.
Through these allegedly deceptive trial offers, the defendants have made tens of millions of dollars, the FTC contends. The defendants named in the FTC’s complaint are Triangle Media Corporation, Jasper Rain Marketing LLC, Hardwire Interactive Inc., and Brian Phillips, who the FTC alleges owns and operates Triangle Media Corporation.
The complaint charges the defendants with violating the FTC Act, the Restore Online Shoppers’ Confidence Act, and the Electronic Fund Transfer Act and its implementing Regulation E. The FTC is seeking an injunction permanently barring the defendants from such practices in the future.
The Commission thanks the following agencies organizations for their collaboration and contributions to this case: the United States Postal Inspection Service, the Nevada Attorney General’s Office, the San Diego County District Attorney’s Office, the Better Business Bureau of Eastern & Southwest Missouri & Southern Illinois, the Better Business Bureau of Denver & Boulder, the Better Business Bureau of Detroit & Eastern Michigan and the Better Business Bureau of Southern Nevada.
The Commission vote authorizing the staff to file the complaint was 5-0. The complaint was filed in the U.S. District Court for the Southern District of California, and the court granted the FTC a temporary restraining order against the defendants on June 28, 2018.
NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.
The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn 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.
Make Sure You Know the Rules on Summer Wages
If you're hiring seasonal or part-time staff, make sure you know the Department of Labor regulations surrounding this type of employment. Find the answers to common questions about things like payroll, required break periods, and overtime.
The National Park Service Wants to Hire You!
The National Park Service hires thousands of seasonal employees each year for a variety of different positions. Explore temporary work in beautiful preserved public lands across the country, such as environmental education and research positions. You can also browse long-term employment openings or learn how to apply to become a ranger.
Fagron Sterile Services Issues Voluntary Nationwide Recall of Neostigmine Methylsulfate 1mg/mL, 5mg per 5mL and Neostigmine Methylsulfate 1mg/mL, 3mg per 3mL, in a 5mL syringe Due to Mislabeling
Fagron Sterile Services is voluntarily recalling two (2) lots of Neostigmine Methylsulfate 5mL syringes to the user/hospital/clinic level. The specified product lots are being recalled because of a confirmed customer complaint that some syringe units containing Neostigmine Methylsulfate 1mg/mL, 5mg per 5mL are incorrectly labelled as Neostigmine Methylsulfate 1mg/mL, 3mg per 3mL. Secondary packages are properly labelled as Neostigmine Methylsulfate 1mg/mL, 5mg per 5mL.
Risk Statement: In the event that 5mL rather than the intended 3mL is administered to a patient, adverse events from Neostigmine Methylsulfate overdosage can range from nausea, vomiting, diarrhea, excessive salivation and sweating, increased bronchial secretions, miosis, bradycardia or tachycardia, cardiospasm, bronchospasm, incoordination, muscle cramps, fasciculation, paralysis, to Cholinergic Crisis resulting in death.
Allergy Alert Issued in Midwest Whole Foods Market Stores for Undeclared Soy in Oatmeal Raisin Cookies
Whole Foods Market is voluntarily recalling Whole Foods Market brand oatmeal raisin cookies from stores in eight states because the products contained soy flour that was not listed on the product label. People who have an allergy or severe sensitivity to soy run the risk of serious or life-threatening allergic reaction if they consume these products.
All affected cookies have been removed from store shelves. The affected cookies were sold in Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Nebraska and Wisconsin. The cookies were packaged in an 18-count plastic container with a PLU beginning with 23209. The products have sell by dates from June 4 through July 8, 2018. The problem was discovered when discovered when the supplier notified the company of an unannounced ingredient change. No illnesses have been reported to date.
MedWatch - The FDA Safety Information and Adverse Event Reporting Program
A new MedWatch Safety Alert recall is being issued.
Blissful Remedies., is voluntarily recalling only Lot No.: 112710 with expiration 03/2019 found embedded on the top of package of kratom ( mitragyn a speciosa) powder products, it manufactured, processed, packed, and/or held, between “March 1, 2018” to “April 30, 2018” to the consumer level.
You can read the company announcement at:https://www.fda.gov/Safety/Recalls/ucm612376.htm
United States Bakery Issues Allergy Alert On Undeclared Milk In Naked Bread Hamburger Buns
United States Bakery of Portland, Oregon is recalling Naked Bread Hamburger Buns #NothingToHide, 8 pack, affected lot codes F6 Best By June 16th, 2018 through July 16th 2018, because it may contain undeclared milk. People who have an allergy or severe sensitivity to milk run the risk of serious or life-threatening allergic reaction if they consume this product.
Product is fresh and sold in the bread aisle at retail stores and was distributed directly in Northern California, Idaho, Montana, Oregon, Utah, Washington between June 2, 2018 and July 2, 2018.
Product is packaged in low density polyethylene bag and identified as “Naked Bread Hamburger Buns #NothingToHide, 8 pack, Net wt. 16.5 oz., UPC #72220 11075. The affected lot codes are F6 Best By June 16th, 2018 through July 16th 2018.
Blissful Remedies Issues Voluntary Nationwide Recall of Certain Kratom Powder Capsule
Blissful Remedies., is voluntarily recalling only Lot No.: 112710 with expiration 03/2019 found embedded on the top of package of kratom ( mitragyn a speciosa) powder products, it manufactured, processed, packed, and/or held, between “March 1, 2018” to “April 30, 2018” to the consumer level. The products have been found by the U.S. Food and Drug Administration (“FDA”) via sample testing to have salmonella contamination. Blissful Remedies has not received reports of adverse events related to this recall. In lieu of such FDA findings the company has implemented standard operating procedures and sterilization processes in accordance to FDA guidelines.
These products have the potential to be contaminated with Salmonella, an organism which can cause serious and sometimes fatal infections in young children, frail or elderly people, and others with weakened immune systems.
Blissful Remedies., is voluntarily recalling only Lot No.: 112710 with expiration 03/2019 found embedded on the top of package of kratom ( mitragyn a speciosa) powder products, it manufactured, processed, packed, and/or held, between “March 1, 2018” to “April 30, 2018” to the consumer level. The products have been found by the U.S. Food and Drug Administration (“FDA”) via sample testing to have salmonella contamination. Blissful Remedies has not received reports of adverse events related to this recall. In lieu of such FDA findings the company has implemented standard operating procedures and sterilization processes in accordance to FDA guidelines.
These products have the potential to be contaminated with Salmonella, an organism which can cause serious and sometimes fatal infections in young children, frail or elderly people, and others with weakened immune systems.
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