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
Federal Judge issues injunction against student loan servicer Superior Servicing
A federal judge has issued a temporary injunction against Superior Servicing and its operator Dennise Merdjanian, following FTC allegations that the company claimed to be affiliated with the Department of Education, collected illegal advance fees and made other deceptive claims.
Judge Gloria M. Navarro of the U.S. District Court for the District of Nevada also froze the company’s assets and agreed to the appointment of a receiver.… Continue Reading
Trump designates Andrew Ferguson as next FTC Chair
By Ballard CFS Group on
Posted in FTC
President-Elect Donald Trump said he has selected Andrew Ferguson to be the next Chair of the FTC. Ferguson is a current Republican member of the commission; he will not have to be confirmed by the Senate to become chair.
He will replace Democrat Lina Khan as FTC chair.
Trump also announced his intention to nominate Mark Meador as a member of the FTC.… Continue Reading
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
Federal judge orders debt collector Global Circulation Inc. to temporarily cease operations
By John L. Culhane, Jr. on
Posted in Debt Collection, FTC
A federal judge has ordered debt collector, Global Circulation Inc. (GCI) to temporarily halt operations, following an FTC complaint that alleged GCI tricked consumers into paying more than $7.6 million in bogus debt by threatening them with jail time, harassing their family members, and taking other unlawful actions.
U.S. District Judge Eleanor S.… Continue Reading
FTC issues final click to cancel rule to make it easier for consumers to cancel enrollment in negative option programs
By John L. Culhane, Jr. & Brian Turetsky on
Posted in FTC
On October 16, the FTC issued its final amendments to the Negative Option Rule, which now applies to all negative option programs and includes a “click to cancel” provision intended to make it easier for consumers to cancel their enrollment in order to halt continued charges.
“Negative option” is a term used to describe commercial transactions in which an underlying condition or term will continue unless the consumer takes an affirmative action to either cancel the agreement or reject the good or service. … Continue Reading
Citing Jarkesy, Asbury Automotive Group files suit challenging FTC administrative proceeding
By John L. Culhane, Jr. & Brian Turetsky on
Posted in FTC
One of the country’s largest automotive retailers filed suit against the Federal Trade Commission (“FTC”) on October 4, arguing that the Supreme Court’s recent landmark decision in Securities and Exchange Commission v. Jarkesy requires that complaints such as the one filed against it be filed in court, and not considered in an administrative proceeding.… Continue Reading
Regulators Focus on Solar Lending Industry
By Kaley Schafer, John L. Culhane, Jr. & Ballard CFS Group on
Posted in CFPB Enforcement, FTC
On August 7, 2024, the CFPB published an Issue Spotlight on the solar lending industry. In conjunction with the CFPB’s Issue Spotlight, the CFPB, U.S. Department of Treasury, and the Federal Trade Commission also issued a Consumer Advisory in connection with solar energy sales. All of this comes on the heels of states increasing scrutiny of solar sales practices.… 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 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