Marketers Of Memory Supplement Must Pay $1.4M To Settle Deceptive Advertising Charges

Marketers Of Memory Supplement Must Pay $1.4M To Settle Deceptive Advertising Charges

Using fake news stories and trumped-up, unsubstantiated claims, the marketers of a supplement that claimed to be the answer to memory loss problems sold nearly $100 million worth of the stuff in just a few years. Now they have to fork over $1.4 million to federal and state authorities for making these deceptive statements, and face millions more in penalties if they fail to comply. [More]

Hyundai, Nissan Dealerships In Las Vegas Settle Deceptive Advertising Complaints

Hyundai, Nissan Dealerships In Las Vegas Settle Deceptive Advertising Complaints

Back in March, federal regulators teamed up with their Canadian counterparts to crack down on auto dealers’ deceptive, fraudulent practices. While that operation culminated in six enforcement actions resulting in more than $2.6 million in judgments and consumer refunds, that wasn’t enough for the Federal Trade Commission, as the agency has now charged two Las Vegas auto dealers with similarly misleading practices. [More]

FTD, Classmates Inc. To Pay $11M To Resolve Multi-State Allegations Of Deceptive Advertising

FTD, Classmates Inc. To Pay $11M To Resolve Multi-State Allegations Of Deceptive Advertising

The attorneys general from 22 states signed an $11 million settlement with a national flower delivery service and social networking site today to resolve allegations that the two companies misled consumers into buying subscription services they didn’t want. [More]

Ashworth College agreed to settle charges it misled students.

For-Profit Educator Ashworth College Settles FTC Charges It Misrepresented Career Opportunities, Transfer Credits

Federal regulators’ crackdown on the for-profit education industry continued today as Georgia-based Ashworth College agreed to settle Federal Trade Commission charges the company misled students about career training and credit transfers. [More]

PayPal Must Pay $25M In Refunds, Penalties For Illegally Signing Customers Up For Online Credit Product

PayPal Must Pay $25M In Refunds, Penalties For Illegally Signing Customers Up For Online Credit Product

The Consumer Financial Protection Bureau alleges that online payment platform PayPal signed up customers for PayPal credit accounts without authorization, forced customers to use this credit line instead of their preferred payment methods, and failed to address disputes. As a result, PayPal will pay a total of $25 million in refunds and penalties. [More]

(bluwmongoose)

FTC’s Auto Industry Crackdown Includes Deceptive Advertising, Fraudulent Add-Ons & Improper Loan Modifications

A two-country crackdown on auto dealers’ deceptive, fraudulent practices culminated in six enforcement actions brought by the Federal Trade Commission resulting in more than $2.6 million in judgements and consumer refunds. [More]

The marketer of products such as Snuggies and Magic Mesh door covers must pay $8 million to settle charges of deceiving consumers.

Marketer Of Snuggies, Perfect Brownie Pans, Others Must Pay $8M For Allegedly Deceiving Consumers

The marketer of popular “as-seen-on-TV” products such as Snuggies, Magic Mesh door covers and Perfect Brownie Pans must pay $8 million to resolve federal and state charges it deceived consumers with promises of buy-one-get-one-free promotions and then charged exorbitant fees for processing and handling, nearly doubling the cost of the products. [More]

(Sybren Stüvel)

Don’t Lie About Paying For Online Reviews. It’s Against The Law

In this era of social media and crowdsourced reviews, businesses with happy customers do what they can to publicize positive feedback. But if a company compensates customers for reviews and fails to disclose that tit-for-tat relationship, it’s illegal and deceptive marketing. [More]

(C x 2)

CFPB Orders Mortgage Company To Pay $2M Penalty For Deceptive Advertising & Kickbacks

The Consumer Financial Protection Bureau continued its ongoing crackdown of companies deceptively marketing products to U.S. veterans by ordering NewDay Financial, LLC to pay $2 million and revamp its business practices. [More]

(scurzuzu)

The Important Legal Difference Between Being A Celebrity Endorser & Just A Famous Face In An Ad

Turn on your TV today and maybe you’ll see an iPhone ad with Jimmy Fallon followed by 30 seconds of Matthew McConaughey giving his personal philosophy on Lincoln automobiles. To many of us, it’s all part of the endless parade of familiar faces and voices being paid to sell us something, but there’s an important legal distinction between a celebrity who endorses a product they claim to believe in and one who is just picking up a paycheck to appear in an ad. [More]

(Chris Rief aka Spodie Odie)

Two States Sue Makers Of 5-Hour Energy With Claims Of Deceptive Advertising

Both Oregon and Washington State filed lawsuits against the makers of 5-Hour Energy, alleging that the company has engaged in deceptive advertising tied to the ingredients in its drink. Other states are expected to follow suit, pun intended and totally appropriate in this case. [More]

Company To Refund Consumers $3.5M Because Cactus Juice Isn’t “Inflammation Relief Without A Prescription”

Company To Refund Consumers $3.5M Because Cactus Juice Isn’t “Inflammation Relief Without A Prescription”

Advertisements featuring carefree, beautiful smiling people sipping on juice might not be enough to entice someone to buy a product, but plastering claims that the drink is a cure-all for pain could probably do the trick. But when those promises aren’t supported by, you know, actual science, then it’s called deceptive and federal regulators won’t stand for that. [More]

FTC Settles Charges Of Deceptive Advertising Against Four Weight-Loss Marketers For $34M

FTC Settles Charges Of Deceptive Advertising Against Four Weight-Loss Marketers For $34M

Put down that shaker of Sensa. Those promises of shedding 30 pounds while eating french fries and sitting on the couch aren’t real. We know — who would have thunk it? Well, the Federal Trade Commission for starters, which announced today that four marketers of fad weight loss products settled FTC charges on deceptive advertising for $34 million. [More]

Washington State AG To T-Mobile: Not So Fast With That ‘No-Contract’ Advertising

Washington State AG To T-Mobile: Not So Fast With That ‘No-Contract’ Advertising

Last month, we pointed out that while T-Mobile’s new pricing schemes are a lot better than the standard handset subsidy/contract model in the United States, it’s not perfect, and it’s not totally commitment- and contract-free. The Attorney General of Washington state agrees with us. They got T-Mobile sign a court order that applies nationwide and lets customers get a full refund on their handsets and plans if they believe that they were misled into signing up with T-Mobile. [More]

United, US Airways Bill Higher Baggage Fee As A Way To Save. Huh?

United, US Airways Bill Higher Baggage Fee As A Way To Save. Huh?

United and US Airways will soon charge an extra $5 to check bags at the airport, charging $20 for the first bag and $30 for the second. Since it will still cost $15 and $25 respectively to pay for checked bags online, United thinks they can herald the chance to “prepay & save!,” while US Airways boasts that they now have a “lower fee online!”

FTC To Require Advertisers Using Testimonials To Show Typical Results

FTC To Require Advertisers Using Testimonials To Show Typical Results

Subway spokesman and occasional thin guy Jared Fogle may soon be out of work thanks to a new FTC rule banning commercial testimonials that warn “results not typical” or “individual results may vary.” Under the new rule, marketers using, say, body builders to advertise weight loss pills are also going to have to show an average lardass whose results might be more typical. You can guess how advertisers are reacting to the change…

Computer Store Ad Uses Picture Of New MacBook Pro To Sell Old Ones

Computer Store Ad Uses Picture Of New MacBook Pro To Sell Old Ones

Andrew sent us this picture of a CampusTechShop ad that he says is all over his college campus. The ad trumpets reduced prices on the previous edition of MacBook Pro, then illustrates it with a picture of the new MacBook Pro.

FTC Wags Finger At Word-Of-Mouth Marketing

FTC Wags Finger At Word-Of-Mouth Marketing

Companies using so-called “word of mouth marketing” must disclose who’s paying the shill’s bills, the FTC said Monday.