HERE ARE SOME OF THE LATEST: SCAMMERS AND CROOKS MASQUERADING AS “LEGIT CORPORATIONS”!!
CROOKED “POLITICIANS (T-MAN AND HIS CRONIES) AND GREEDY/WEALTHY/LYING AMERICAN CORPORATE CEO’S AND “BOARD MEMBERS AND SHAREHOLDERS” , believe THAT ITS PERFECTLY “OK” TO “TRICK/SCAM/STEAL” FROM THE PEOPLE OF AMERICA AND OF THE WORLD, AND TRUE/TRUTH OF THE WHOLE THING IS: “tiny/little/puny/petty” PEOPLE WHO ARE “STUPID-IS-AS-STUPID-DOES/SAYS/HATERS/BIGOTS/CULTISTS”=ARE TOTAL “ENABLERS” OF THESE POLITICAL AND CORPORATE CROOKS!!
THE “FTC” AND THE CONSUMERS FINANCIAL PROTECTION BUREAU CANNOT KEEP UP WITH NOR DO ANYTHING REAL LONG LASTING AGAINST THESE “CROOKS” THAT ARE EVERYWHERE…
Payment processor’s sales pitches tricked small business owners
By
Karen Hobbs
Today, people expect to swipe, dip, tap, enter, and use their credit and debit cards everywhere — including at small businesses, local shops, and neighborhood restaurants. If you own a small business, you’ve probably gotten a sales pitch for payment processing services. As the FTC’s case against First American Payment Processing and its affiliates Eliot Management Group and Think Point Financial demonstrates, some of those sales pitches are misleading and violate the law.
According to the FTC’s lawsuit, First American tricked small business owners — including people with limited English proficiency — into signing lengthy and complicated payment processing contracts with hidden terms. The FTC says First American made baseless cost savings claims, often falsely claimed you could cancel at any time with no penalty, failed to reveal that the contract was actually a three-year agreement with a $495.00 early termination fee, and failed to disclose that the contract would automatically renew every year. To settle the case, First American will turn over $4.9 million to the FTC for refunds and agreed to change its practices.
Are you a small business owner looking to manage your payment processing costs? Before you sign a payment processing contract, know what you’re getting into — and how to get out of it.
- Don’t be rushed. Sales agents want a quick decision. Take time to read the contract and check out the company.
- Do some research. Before doing business with a new company, search the company’s name online with words like “scam” or “complaint.” Read what others are saying about that company.
- Get it in writing before you agree to anything. If you don’t get the agreement terms in writing, walk away. If you do sign, be sure to get a copy of the entire document, especially if you sign electronically.
- Ask for recommendations from other business owners in your community. Positive word of mouth from trustworthy people is more reliable than any sales pitch.
Check out Scams and Your Small Business to learn more about what to watch out for, and share the
information with people you know.
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Closing the door on home buying company Opendoor’s false claims
By
Amy Hebert
When you sell a house, you’re looking to get the most you can for it. What if a company promised you’d make more money selling it to them than you would on the open market? You’d probably say, “Sold!” According to the FTC, that’s what house buying company Opendoor Labs told people looking to sell their homes — but that wasn’t the reality.
Opendoor promoted itself as tech company that uses its pricing technology to offer more accurate offers and lower costs. Companies like Opendoor are what’s known as “iBuyers” — companies that use technology to make quick offers on homes. According to the FTC, Opendoor said it would pay market value for people’s homes while saving them money on costs. That way, people selling their homes would make thousands of dollars more than they would on the open market. But, the FTC says, it wasn’t true.
Instead, the FTC says Opendoor’s offers were lower than a home’s market value, and the company asked sellers to pay for home repair costs that were higher than what people would typically spend on repairs in a market sale. As a result, most people who sold their homes to Opendoor typically lost thousands of dollars compared to what they would have made if they’d sold their homes on the open market.
To settle the FTC’s charges that the company’s claims were deceptive, Opendoor has agreed to pay $62 million, which the FTC will use for refunds to people who were affected.
If a company makes false and misleading claims, report it to the FTC at ReportFraud.ftc.gov.
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For Release
Federal Trade Commission Scores Two Victories in Separate Actions Against Companies Who Failed to Deliver COVID Personal Protection Equipment During Early Days of the Pandemic
Wins Against Glowyy and American Screening Hold Companies Accountable and Secure More Than $17 Million For Consumers
Tags:
- Consumer Protection
- Bureau of Consumer Protection
- Health
- Shopping
- Coronavirus (COVID-19)
- Retail
- Merchandise & Clothing
- Advertising and Marketing
- Health Claims
- Online Advertising and Marketing
- Advertising and Marketing Basics
The Federal Trade Commission won victories in two lawsuits against companies, that failed to deliver on orders of personal protective equipment in the early stages of the COVID-19 pandemic. In separate actions against QYK Brands (doing business as Glowyy and through related companies) and American Screening, LLC, the Commission alleged that both companies deceived consumers about the availability of PPE gear at the onset of the COVID-19 pandemic. Commission staff won both actions on summary judgment, holding these companies accountable for their misconduct in the early days of the pandemic and putting more than $17.6 million back into consumers’ pockets.
Both California-based Glowyy and Louisiana-based American Screening marketed and sold personal protective equipment in the early days of the COVID-19 pandemic, including masks, face shields, hand sanitizer, and gowns. American Screening marketed its products in bulk and, in addition to advertising to individual consumers, targeted local governments, hospitals and nursing homes for sales, while the Glowyy defendants marketed their products to individual consumers. Both companies made false promises about the availability of PPE, resulting in consumers who waited weeks or even months for their orders to be fulfilled, if at all. In addition, the Glowyy defendants misled consumers by marketing a supposed protein powder that they claimed could prevent COVID-19.
In its order granting summary judgment in favor of the Commission in Glowyy, the court found that the Glowyy defendants began advertising hand sanitizer and other Personal Protective Equipment (PPE) products online in March 2020 saying they were in stock and would ship the same day they were ordered, but defendants repeatedly failed to make good on those promises. The court also found the defendants not only failed to actually ship the product for weeks or months, but they failed to offer refunds to consumers or allow them to consent to the delay as required by the Mail Order Rule.
In the American Screening matter, the court’s summary judgment order found that at the start of the COVID-19 pandemic, American Screening’s website claimed that items would be shipped “within 24-48 hours” and that products were “in stock” and available to ship. However, American Screening did not have a reasonable basis for its shipping claims, failed to ship many orders within the promised time period, and did not follow the Mail Order Rule’s requirements for delayed shipments.
Since the earliest days of the pandemic, the FTC has acted to protect consumers from unscrupulous actors who have sought to use the pandemic as a tool to scam consumers, governments, and businesses. The FTC brought cases against the Glowyy defendants and American Screening in federal court in August of 2020 using its authority under the FTC Act and the Mail, Internet and Telephone Order Rule. In recent cases, the Commission has used its authority under the COVID-19 Consumer Protection Act, passed in 2021, to target scammers preying on pandemic fears.
Enforcement Actions
In Glowyy, the court has already entered a permanent injunction following the Commission’s summary judgment win. The injunction requires Glowyy to:
- Stop selling products that purport to treat COVID-19. The order prohibits the Glowyy defendants from selling or marketing any good or service that claims to prevent, treat, or protect against COVID-19 or any other infection or disease.
- Stop misleading consumers about the timing of product deliveries. The order requires the company ship products in a timely manner, offer a refund if they are unable to do so, among other things. The company must create and maintain records demonstrating its compliance with these requirements
- Stop making unsubstantiated health claims. The order prohibits Glowyy from making unsubstantiated health claims about any dietary supplement, food or drug.
- Provide refunds to consumers. Glowyy must surrender $3.08 million to the FTC to be used for providing to refunds to consumers.
In American Screening, the court agreed with the Commission that both monetary relief in excess of $14 million and injunctive relief are appropriate in this matter. Commission staff will submit a proposed order finalizing that relief in the coming weeks.
The FTC’s case against QYK Brands, doing business as Glowyy; Dr. J’s Natural, LLC; EASII, Inc., Theo Pharmaceuticals, Inc., Rakesh Tammabattula; and Jacqueline Thao Nguyen was filed in the U.S. District Court for the Central District of California, and its case against American Screening, LLC, Ron Kilgarlin Jr., and Shawn Kilgarlin was filed in the U.S. District Court for the Eastern District of Missouri.
The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.
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Only scammers demand utility payments in cryptocurrency
Gema de las Heras
August 11, 2022
It’s never a good time to have your utilities shut off. But during the hot summer months, the threat of having no power can be especially miserable: no AC, no refrigerator, not even a fan. Scammers
Funerals
Contacted about a long-lost relative’s inheritance? Hold on a minute
Joseph Ferrari
August 10, 2022
The FTC has been getting reports of people getting letters in the mail from a law firm. They are, they say, looking for the heir of a multi-million-dollar inheritance. And they think it might be you.
Company said their COVID PPE was Made in the USA. They lied and are paying the price.
Colleen Tressler
August 9, 2022
Dishonest companies will do just about anything to make a buck. Take the FTC’s case against Adam J. Harmon and two companies he controls, Axis LED Group, LLC and ALG-Health LLC. According to the FTC’s
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Holding franchisors accountable for illegal practices
By
Samuel Levine, Director, FTC Bureau of Consumer Protection
We often talk about homes, cars, and education as the largest purchases people will ever make. But for many consumers, the cost of buying a franchise is the financial commitment of a lifetime. Some prospective franchisees may be sophisticated entrepreneurs. But many others are hard-working people who sink their life savings – or take on substantial debt – to buy a franchise. The FTC’s Franchise Rule requires franchisors to make key disclosures upfront before people make a major investment. What’s more, the FTC Act prohibits material misrepresentations about any business opportunity, including franchises. But what happens if franchisors don’t honor the requirements of the Rule or mislead franchisees with deceptive claims? Consumers may have avenues of recourse they hadn’t considered.
Certainly there have been franchise success stories, but there also are examples of companies that have pocketed franchisees’ fees and then failed to deliver. For example, the Department of Justice has filed suit on the FTC’s behalf against fast food chain Burgerim, alleging that the defendants made millions from selling franchises while setting franchisees up to fail. The pending complaint charges that the company violated the FTC Act and the Franchise Rule by deceptively pitching the opportunity as “a business in a box,” promising franchisees help that never happened, omitting key information from the Franchise Disclosure Document, and saying things in those documents that contradicted what they told prospective franchisees.
What can franchisees do if they believe franchisors have engaged in illegal conduct? Neither the FTC Act nor the Franchise Rule creates a private right of action that allows a consumer to sue a franchisor under those laws. However, the Franchise Rule prohibits practices the FTC has determined are unfair or deceptive, and franchisees may be able to use state statutes that prohibit unfair or deceptive practices to challenge conduct that violates the Franchise Rule or truth-in-advertising standards. Of course, state law will determine whether a franchisee may bring a claim for a franchisor’s misrepresentations or omissions, but let’s be clear: There is nothing in the FTC Act or the Franchise Rule that would preclude franchisees from exercising their legal rights. Simply put, the FTC Act and the Franchise Rule impose no roadblock to consumers seeking justice under state law.
Thinking of sinking your heart, soul, and savings into a franchise? Don’t make a move without reading A Consumer’s Guide to Buying a Franchise. If you spot a questionable business practice by a franchisor, tell us about it at ReportFraud.FTC.gov.
And franchisors, given the FTC’s commitment to protecting franchisees from illegal conduct, how do your practices measure up to the mandatory standards explained in the Franchise Rule, the Franchise Rule Compliance Guide, and Amended Franchise Rule FAQs?
Tags:
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- Going into Business
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FTC Commissioners aren’t calling you — really
By
Andrew Rayo
Scammers have been calling, pretending to be people from the FTC. While the names they use might be real, they’re actually scammers — some of them hoping to trick you into thinking they’re an FTC Commissioner. But they’re not. Whether the caller promises you a prize or threatens you with arrest — and even if they give a (fake) badge number — that’s a scammer. So that call from someone who wants your money or info, and says they’re Commissioner Alvaro Bedoya from the FTC — or Commissioner Noah Phillips, Commissioner Rebecca Kelly Slaughter, Commissioner Christine Wilson, or FTC Chair Khan? That’s a scam.
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Scammers like these might demand access to your bank account. They might tell you to pay them by loading money on gift cards, buying cryptocurrency, or using a money transfer service like MoneyGram or Western Union. They could say it’s a way to avoid jail, pay a fine, settle an unpaid Amazon balance, or even collect a prize. But it’s a scam.
Here are three things to know about this scam:
- The FTC won’t call, email, text, or message you on social media to ask for money. Anyone who does is a scammer.
- The FTC will never call, email, text, or message you on social media to threaten you with arrest. In fact, no government agency will do that. But scammers will.
- Never pay anybody who contacts you out of the blue and tells you to pay. Don’t give them access to your bank account, don’t buy cryptocurrency or gift cards, don’t wire money, don’t send cash. Just don’t pay them. It’s a scam.
Don’t respond to anyone who says they’re an FTC Commissioner or the FTC Chair — they’ll never call you to demand money, threaten you with arrest, or promise you a prize. Instead, report the scam to the FTC at ReportFraud.ftc.gov.
Scams
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For Release
Federal Trade Commission Returns More Than $1 Million To Consumers Harmed by Global Asset Financial Services’ Phantom Debt Collection Scheme
Tags:
- Consumer Protection
- Bureau of Consumer Protection
- deceptive/misleading conduct
- consumer refunds
- Finance
- Credit and Finance
- Debt
- Debt Collection
The Federal Trade Commission is sending payments totaling more than $1 million to 1,966 consumers who were harmed by a debt collection scheme that conned consumers into paying debts they did not owe. The defendants used several names including GAFS Group, Global Mediation Group, and Mediation Services.
Consumers will be recovering all the money they lost to the scammers, averaging $516 for each payment. Consumers will receive either a PayPal payment or a check in the mail. Recipients should redeem PayPal payments within 30 days or cash checks within 90 days. Approximately 200 additional consumers will receive claim forms. To get a payment, they must complete and return the form within 45 days to confirm the amount they paid the defendants.
Consumers who have questions about their refund or claim form should call the refund administrator, Analytics, at 866-948-2713. The Commission never requires people to pay money or provide account information to get a refund.
The FTC sued GAFS Group in February 2019 for falsely claiming to be attorneys or affiliated with attorneys, pressuring consumers into making payments on debts they did not owe. The defendants threatened to take legal action against consumers if they did not pay these phantom debts. In December 2019, the defendants agreed to a settlement that permanently banned them from debt collection, debt brokering activities, misleading consumers, and from misrepresenting to consumers whether they are attorneys.
The Commission’s interactive dashboards for refund data provide a state-by-state breakdown of refunds in FTC cases. In 2021, Commission actions led to more than $472 million in refunds to consumers across the country, but the U.S. Supreme Court ruled in 2021 that the Commission lacks authority under Section 13(b) to seek monetary relief in federal court. Fortunately, this case resolved before the Supreme Court’s actions. But because of that ruling, the Commission no longer has its strongest tool to return money to consumers, and it will become harder to provide refunds to consumers harmed by deceptive and unfair conduct going forward. The Commission has urged Congress to restore the Commission’s ability to get money back for consumers.
The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.
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FTC Stops Phantom Debt Collection Scheme
Operators of Phantom Debt Scheme Permanently Banned From Debt Collection under Settlement with FTC
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Don’t click on that random text. It’s a scam
By
Gema de las Heras
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Sorry to burst your bubble. That unexpected text from the Postal Service (USPS), Costco, or The Home Depot telling you about an unclaimed package or a survey you can complete to claim a freebie is NOT from them. It’s a scam.
The FTC has seen a spike in reports from people getting text messages that look like they’re from well-known names like USPS, Costco, or The Home Depot and others. Spoiler alert: they’re from impersonators. The details vary, but the scammers are after the same thing: your money and your personal information. You may get a text from scammers pretending to be USPS and asking you to confirm your debit card details so you can get an undelivered package. Or you might get texts about a chance to win a free gift card or a power tool. To claim your “reward,” you’re told to click on the link, answer some questions, and pay for shipping. Don’t do it.
If you click on those links and submit your card information, you’ll ending up with nothing — but you’ll find unauthorized charges posted to your account.
No matter what the unexpected text says, the advice is the same.
- Don’t click on links or respond to unexpected texts — including ones asking you to fill out surveys to get free items. If you think it could be legit, contact the company using a website or phone number you know is real. Don’t use the information in the text message.
- Don’t pay to get a package redelivered. The real USPS won’t contact you out of the blue about a delivery (unless you submitted a request first and give a tracking number) — and they’ll never demand payment to redeliver a package.
Already paid or gave your information to a scammer? Check out What to Do If You Were Scammed to learn more about asking for a refund. And see what to do next if your identity has been stolen.
Have you spotted an impersonation scam? Report it at ReportFraud.ftc.gov.
Read more about the FTC’s rulemaking proposal to combat impersonation scams.
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Deceptive duo: Made in USA falsity and misleading COVID claims
By
Lesley Fair
Like peanut butter and jelly, some things just go together. Then there are things that are bad on their own and even worse when combined. A proposed FTC settlement adds a new duo to that category: false Made in USA representations and deceptive COVID claims. The case was filed by the Department of Justice on the FTC’s behalf against Adam J. Harmon and two companies he controls. The action also sends a loud-and-clear warning to the many businesses that have received letters from FTC staff over the years about their Made in USA claims.
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Seeking to capitalize on COVID-fueled demand, Harmon and ALG-Health LLC, began selling personal protective equipment in early 2020. On their website and in social media, the defendants positioned their products as “An American Solution.” The defendants claimed, “Our manufacturing facility was built in NW Ohio and is completely staffed by American workers, making ALG Health one of the very few PPE facilities in America that is 100% Made in the USA.” As they stated in social media, “Our N95 masks are manufactured in USA designed to protect medical workers, first responders, military, and humanitarian workers. Every day that we come to work, we know we are building hospital-grade N95 face masks to protect those who protect us.”
The defendants doubled down on those selling points by combining their Made in USA pitch with the claim that because their products were made in the United States, they provided protection from COVID that was superior to imported products. For example, in a social media post, the defendants warned that “imported products are not tested and could be unsafe,” and cautioned healthcare customers to “purchase American-made PPE and masks so that our heroic frontline workers do not have their safety put at risk by relying on foreign-made products.”
But according to the complaint, in many cases, “Defendants received Chinese KN95s, unpacked the completed respirators, stripped off Chinese origin labels, printed ALG and NIOSH labels on the respirators, and then re-boxed the respirators in ALG packaging with MUSA labels.” The FTC says in other instances, products advertised with unqualified Made in USA claims underwent some finishing in the U.S., but incorporated all Chinese materials.
The complaint alleges that the defendants violated the FTC Act and the Made in USA Labeling Rule, which prohibits labeling any product with an unqualified Made in USA claim unless: 1) all or virtually all ingredients or components of the product are made and sourced in the United States, 2) all significant processing that goes into the product occurs in the U.S., and 3) the final assembly or processing of the product occurs here, too. The complaint also charges the defendants with making misleading representations that they sold NIOSH-certified, U.S.-origin N95 respirators and that their PPE products were safer or provided superior protection from COVID-19 than imported products.
That’s one part of the FTC’s case against Harmon and his companies, but the complaint challenges other deceptive claims that go back to pre-COVID times. As early as 2015, Harmon and Axis LED Group, LLC marketed LED lights, tubes, and fixtures, including a line of LED bulbs – called “Patriot Tubes” – as made in the USA. The defendants stated that their “advances in manufacturing processes and efficiency have finally allowed us to produce USA-made products at competitive prices.” In 2016 the FTC received reports calling the defendants’ Made in USA claims into question. As the complaint explains, after the FTC staff conducted an investigation, “Defendant Harmon admitted Patriot Tubes included significant Chinese components,” but claimed they were assembled in the United States. Harmon ultimately acknowledged FTC guidance and caselaw that unqualified Made in USA claims must meet the established “all or virtually all” standard and agreed to market his products in the future consistent with that standard. On January 18, 2017, FTC staff issued a letter on the public record stating the steps Harmon and his company had agreed to take to correct their claims.
Since then, the FTC says the defendants have marketed Patriot LED products as “Assembled in the USA.” But according to the complaint, in many instances, Harmon’s employees have peeled Made in China stickers off LED products and replaced them with Made in USA labels despite the fact that the products underwent no manufacturing in the United States, other than occasional quality checks.
To settle the case, the stipulated order requires the defendants – among other things – to pay a $157,683 civil penalty. A $2.8 million redress judgment is currently suspended due to their inability to pay. Should the defendants have made misrepresentations about their assets, the FTC will seek to have the suspension lifted and the full judgment due immediately.
The case conveys two important messages for other businesses.
Misleading Made in USA or COVID claims will cost you. The Made in USA Labeling Rule and the COVID-19 Consumer Protection Act give the FTC legal authority to seek civil penalties against companies that make deceptive Made in USA representations or violate the FTC Act by engaging in illegal conduct associated with the treatment, cure, prevention, mitigation, or diagnosis of COVID.
Don’t ignore FTC staff warnings. Has your business received a staff warning, a closing letter, or another indication that your representations have attracted law enforcement attention? Take it as a sign that it’s time to clean up your claims. “Who? Me?” is an ineffective argument when FTC staff has raised concerns about previous marketing tactics. Consult the FTC’s Made in USA page for businesses for guidance, cases, letters, blog posts, and other compliance resources.
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Contacted about a long-lost relative’s inheritance? Hold on a minute
By
Joseph Ferrari
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The FTC has been getting reports of people getting letters in the mail from a law firm. They are, they say, looking for the heir of a multi-million-dollar inheritance. And they think it might be you. (Spoiler alert: it’s not.)
Here’s what they offer: they’ll split the inheritance between you, their law firm, and some charities. One other thing: they say you have to keep this information secret and reach out to them by email — immediately.
So what’s really happening? This is not a lawyer — it’s a scammer. And if you email them, they’ll probably try to get your personal information, like your Social Security or bank account numbers, your money — or both. And that inheritance? It doesn’t exist.
Here’s what to do if you get one of these letters:
- Don’t respond. Keep your money — and your information — to yourself. Never send money or information to a stranger who promises big rewards. That’s always a scam.
- Pass this information on to a friend. You probably throw away these kinds of letters. But you probably know someone who could use a friendly reminder.
- Report it to the FTC at ReportFraud.ftc.gov.
Want to stay on top of the latest scams? Get the FTC’s Consumer Alerts delivered to your email inbox. Sign up: ftc.gov/ConsumerAlerts.
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Only scammers demand utility payments in cryptocurrency
By
Gema de las Heras
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It’s never a good time to have your utilities shut off. But during the hot summer months, the threat of having no power can be especially miserable: no AC, no refrigerator, not even a fan. Scammers know this and will try to trick you into sending them money to keep your electricity on. But there are ways to spot the scammers.
The latest twist on utility scams is asking you to pay in Bitcoin or another type of cryptocurrency. The scam goes like this: you get a call or text from someone pretending to be your utility company. The caller or text says you owe money (which is a lie). The scammers then send you a text—sometimes including your utility company’s logo— with a QR code and tell you to scan it at a Bitcoin ATM to make a payment or your service will be disconnected. Stop!
No utility company will text you about a shut-off, and no utility company will demand payment in cryptocurrency. Those are scams. And before it shuts off service, all real utility companies will notify you in writing and offer a repayment plan. So, if you get one of those texts:
- Know that only scammers demand payment in cryptocurrency. Real utility companies won’t demand payment by Bitcoin, gift cards, or money transfer through a company like MoneyGram or Western Union. Only scammers do.
- Contact the utility company directly. Use the number on your bill or on the company’s website if you’re worried about an amount due, or to tell them about the text.
- Know your options. If you’re behind on utility bills, there are ways to make your payments more affordable, including setting up payment arrangements, budget billing, and ways to reduce your usage.
Help the FTC fight fraud by reporting utility scams at ReportFraud.ftc.gov
