In November 2019, the Federal Trade Commission filed a lawsuit against direct selling wellness company Neora, LLC (f/k/a Nerium International, LLC) and its Chief Executive Officer alleging that the company operates as an illegal pyramid scheme and falsely promises recruits they will achieve financial independence if they join the scheme. The lawsuit also alleges that … Read more
On September 1, 2023, an Illinois federal court ruled in the matter of Federal Trade Commission v. Day Pacer LLC, et al. (N.D. Ill. Sept. 1, 2023) that Day Pacer (f/k/a EduTrek) and company executives violated the Telemarketing Sales Rule (TSR) by allegedly making millions of calls to telephone numbers on the National Do Not … Read more
The Federal Trade Commission and state attorneys general continue to aggressively investigate and prosecute those that advertise, market, distribute, promote and sell certain kinds of ecommerce management, business coaching, work-from-home and investment programs. In fact, in 2022 the Federal Trade Commission announced that it was exploring changes to the Business Opportunity Rule in order to broadly expand … Read more
On April 14, 2023, the U.S. Supreme Court afforded defendants the ability to directly challenge the structural constitutionality and existence of the Federal Trade Commission (and the Securities and Exchange Commission) in federal court without having to slog their way through pre-enforcement administrative proceedings that many believe deprive defendants of due process. Axon Enterprise, Inc. v. … Read more
As a result of his demonstrated distinct subject matter expertise and track record of success in the fields of digital advertising compliance, investigations (CIDs) and regulatory defense, FTC defense attorney Richard B. Newman been selected to assume authorship of the Consumer Protection Section of the American Lawyer Media International Federal Trade Commission: Law, Practice and … Read more
On January 30, 2023, the Criminal Liaison Unit of the Federal Trade Commission’s Bureau of Consumer Protection (BCP CLU) issued its 2022 Criminal Liaison Unit Report, describing the history of the BCP CLU, its program operations, and major accomplishments over the past five years. In an effort to ensure criminal prosecution of appropriate consumer fraud … Read more
The Business Opportunity Rule (“Bizz Opp Rule”) was first adopted in 2012. It applies to commercial arrangements where a seller solicits a prospective buyer to enter into a new business, the prospective purchaser makes a required payment, and the seller – expressly or by implication – makes certain kinds of claims. Without limitation, opportunities where … Read more
“Ringless voicemails” are messages left in a consumer’s mailbox without ringing their cell phone. The Telephone Consumer Protection Act protects consumers from unwanted robocalls. The TCPA, in pertinent part, prohibits making any non-emergency call using an automatic telephone dialing system or an artificial or prerecorded voice to a wireless telephone number without the prior express … Read more
The FTC continues to issue Notices of Penalty Offenses concerning FTC Endorsement Guide violations to digital advertisers and marketers, both alone and in conjunction with the issuance of FTC Civil Investigative Demands. A Notice of Penalty Offenses is a document listing certain types of conduct that the FTC has determined, in one or more litigated … Read more
The FTC recently voted unanimously to issue an Advance Notice of Proposed Rulemaking (ANPR) considering modification to the FTC’s Business Opportunity Rule (BOR). The BOR as currently applies a “commercial arrangement” in which a “seller solicits a prospective purchaser to enter into a new business,” the “prospective purchaser makes a required payment, and the “seller, expressly or … Read more
Providers beware. The Federal Trade Commission and state attorneys general continue to aggressive investigate and enforce legal regulations relating to offers for business coaching services and work-at-home opportunities. Without a doubt, there are various red flags that will almost always draw the attention of regulatory agencies. For example: Express or implied representations … Read more
Attention Lead Generators.
