The Justice Department is asking a federal court to issue a permanent injunction against cash advance firm Dave Inc. and its CEO Jason Wilk, alleging that the company uses misleading marketing tactics to deceive consumers about the amount of its cash advances, charges consumers undisclosed fees, and charges so-called “tips” to consumers without their consent.… Continue Reading
FTC Enforcement
FTC takes action against small business lender Seek Capital
The FTC filed a complaint in the U.S. District Court for the Central District of California against Seek Capital and its CEO, Roy Ferman, alleging that the company operated a bogus business finance scheme that cost small business owners more than $37 million. The FTC alleges violations of the FTC Act, Telemarketing and Consumer Fraud and Abuse Prevention Act, Telemarketing Sales Rule, and Consumer Review Fairness Act of 2016, and requests a temporary, preliminary and permanent injunction, monetary damages and other relief.… Continue Reading
This week’s podcast episode: A Look at the FTC’s Click-to-Cancel Rule, with James Kohm, Associate Director of Enforcement Division of the FTC’s Bureau of Consumer Protection
By Ballard CFS Group on
Posted in FTC Enforcement, Podcasts
Today’s podcast features James Kohm, the Associate Director for the Enforcement Division of the Federal Trade Commission’s Bureau of Consumer Protection. We discuss the FTC’s “Click-to-Cancel” Rule (consisting of significant amendments to the longstanding “Negative Option Rule”) which was promulgated by the FTC on October 16, 2024 by a vote of 3-2 along party lines.… Continue Reading
FTC files complaint against online cash advance app Dave
Posted in FTC Enforcement
The FTC has filed a complaint against the online cash advance app, Dave, charging that the company used misleading marketing to deceive consumers about the amount of its cash advances and charged consumers undisclosed fees and so-called “tips” without their consent.
The FTC noted that Dave describes the consumers it targets as “financially vulnerable” or “financially coping,” suggesting that Dave knew they were particularly vulnerable to its claims that they could instantly receive up to $500,
In its complaint, filed in the U.S.… Continue Reading
Court approves FTC agreement with Invitation Homes; company to pay $48 million, address “junk fee” practices, stop certain other practices
By John L. Culhane, Jr. on
Posted in FTC Enforcement
Invitation Homes, the nation’s largest landlord of single-family homes, has agreed to pay $48 million and to stop a significant number of its rental practices, including misleading renters about lease costs and charging undisclosed fees characterized by the FTC as junk fees, according to an agreement approved Sept. 27 by the U.S.… Continue Reading
FTC, State of Arizona Charge Auto Dealership with Deceiving Consumers
Posted in Auto Finance, FTC Enforcement
On August 15, 2024, the Federal Trade Commission (“FTC”) and Arizona Attorney General announced a proposed settlement with an Arizona-based vehicle dealership to resolve allegations that the dealership misrepresented prices in online advertisements, engaged in unfair and deceptive practices related to the sale of add-on products, and discriminated against Latino consumers by charging higher interest rates and more expensive add-on charges.… Continue Reading
FTC Issues Final Rule to Fight Fake Product Reviews
By Brian Turetsky, John L. Culhane, Jr. & Ballard CFS Group on
Posted in FTC, FTC Enforcement
The Federal Trade Commission on August 14 announced a final trade regulation rule intended to fight fake reviews and testimonials by prohibiting their purchase or sale and by allowing the agency to seek civil penalties against violators.
The final rule, 16 CFR Part 465: Trade Regulation on the Use of Consumer Reviews and Testimonials, follows a proposed rule issued in June 2023 and an informal hearing on the proposal that was held in February.… Continue Reading
FTC Shuts Down Credit Repair Company
By John L. Culhane, Jr. & Jenny N. Perkins on
Posted in FTC Enforcement
The FTC has shut down Michigan-based Financial Education Services, a credit repair company that the agency says actually was a large pyramid scheme,
If approved by a federal judge in the Eastern District of Michigan, the settlement also will return $12 million to consumers harmed by the company, the FTC said.… Continue Reading
FTC Orders Career Training Company to Pay $43.5 Million for Luring Students With Deceptive Ads
By Brian Turetsky & John L. Culhane, Jr. on
Career Step LLC, an online career training company has been ordered to pay $43.5 million in cash and debt cancellation to resolve FTC charges that the company “lured consumers, specifically servicemembers and their families, with deceptive ads that falsely touted inflated employment outcomes, job placement, and partnerships with prominent companies.”
The company will cancel $27.8 million in debt and pay $15.7 million to provide redress to consumers harmed by its deceptive advertising.… Continue Reading
Vehicle Services Company CarShield Settles Complaint with FTC
By John L. Culhane, Jr., Daniel Wilkinson, Brian Turetsky & Ballard CFS Group on
Posted in FTC, FTC Enforcement
CarShield, a company that sells vehicle service contracts (VSCs), will pay $10 million to settle FTC allegations that its advertisements and telemarketing pitches deceived consumers, the agency announced on July 31.
The money will be used to provide refunds to consumers who were defrauded.
The stipulated complaint filed by the FTC stated that American Auto Shield (AAS) has designed, provided and administered VSCs through CarSheld; it said that between September 2019 and November 2022, CarShield sold VSCs solely on behalf of AAS and has earned commissions of about $600 million.… Continue Reading