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Machinima,
Inc.,
an online entertainment network, agreed to settle FTC charges that it engaged
in deceptive advertising. According to the FTC, the company paid “influencers”
to post positive YouTube videos endorsing Microsoft’s Xbox One system and
several games – without disclosing that they were being paid. According to the
settlement, among other things, Machinima, Inc. must prominently disclose any
material connection between the endorser and the advertiser. |
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The FTC issued a complaint against Vemma Nutrition Company, alleging it is running an illegal pyramid scheme –
and a federal court has ordered the operation to temporarily shut down.
According to the FTC, Vemma Nutrition Company recruited heavily on college
campuses with claims that young adults can earn up to $50,000 per week and live
in the lap of luxury by selling an energy drink. But, says the FTC, the company
emphasized recruiting other “affiliates” instead of drink sales, made false
earnings claims, and failed to disclose that its structure ensures that most
people who join will not earn substantial income.
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The FTC took action
against Wealth Educators, Inc., a bogus
law firm that promised to help homeowners avoid foreclosure. According to the FTC, Wealth Educators, Inc.
promised government-sponsored loan modifications to struggling homeowners who
paid thousands of dollars in upfront fees. The FTC alleges the company did
little or nothing to help people keep their homes, and never worked with
homeowner’s lenders. The FTC also says few people received the full refunds
that the company promised. |
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A series of elusive marketers, operating as Money Now
Funding, among other names, were shut
down by court orders obtained by the FTC. According to the FTC, the defendants
told people they could earn up to $3,000 a month by referring small businesses
to their company to get loans. But, says the FTC, the defendants charged up to
$499 for the business “opportunity,” and then thousands more for useless sales
leads. Money Now Funding cheated American and Canadian consumers – many of them
older adults on limited incomes – out of more than $7 million. |
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Drug makers Concordia
Pharmaceuticals Inc. and Par Pharmaceutical, Inc., settled FTC charges that they entered into an unlawful agreement not
to compete to sell generic versions of Kapvay, a prescription drug used to
treat Attention Deficit Hyperactivity Disorder. At the time of the agreement,
Concordia and Par were the only two firms approved by the FDA to sell generic
Kapvay, but rather than competing against one another, Concordia agreed not to
sell an authorized generic version of Kapvay in exchange for receiving a share
of Par’s revenues. According to the FTC, the agreement deprived consumers of
the lower prices that typically occur with generic competition. Under the
settlement, the firms cannot enforce the anticompetitive provisions of their
agreement. |
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"Rather than focusing
on selling products, Vemma uses false promises of high income potential to
convince consumers to pay money to join their organization. We are also
alleging that Vemma is an illegal pyramid scheme."
— Jessica Rich, Director
of the FTC’s Bureau of Consumer Protection
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The
FTC has new information for people who have recently arrived in the United
States. Spotting, Avoiding and Reporting
Scams: A Fraud Handbook for Recent Refugees and Immigrants is a short
handbook to help people spot, avoid and report scams. The handbook and posters
are free and available in English, Spanish, French, Arabic, Dari, Amharic, and
Somali.
Two companies, Angel
Sales, Inc. and Zadro Health Solutions, agreed to settle FTC charges that
they made false and unsubstantiated advertising claims. According to the FTC,
both companies claimed that their ultraviolet (UV) light devices could kill
nearly all viruses and bacteria. But the FTC says neither company
had the scientific proof to back up those claims.
The FTC is mailing 6,936
refund checks of $25.18 each – totaling $175,000 – to consumers who lost money
buying Speak and Smooth dietary supplements.
According to the FTC, NourishLife, LLC said
the supplements were clinically proven to support healthy and normal speech
development in kids. But the FTC says the company didn’t have the scientific evidence to back up its claims. People who receive
the checks are encouraged to cash them before they expire on October 23, 2015.
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IN OTHER NEWS:
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SHARE THIS:
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Attention
servicemembers! Scammers may have military service. Or they could be lying to
gain your trust and money. http://go.usa.gov/3FnjY
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A con artist might be knocking on your
front door. Scam-proof your doorstep with these tips. http://go.usa.gov/3FnB3
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Concerned about an older friend or relative’s financial situation? Click for
tips on spotting financial abuse. http://go.usa.gov/3Fnk5
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