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The FTC and its partners announced 191 actions to stop fraudulent operations
promising timeshare property resale services and travel-related prizes. The
actions include three FTC cases, 83 civil actions by 28 states, and 25 actions
brought by law enforcers in 10 countries. More than 184 individuals are facing
criminal prosecution. Resellers lured timeshare owners into paying hefty
up-front fees using false claims of having interested buyers ready to pay top
dollar for the properties. In reality, there were no buyers, and property
owners lost hundreds or thousands of dollars. The FTC has updated tips on travel planning and issued a new infographic explaining how a timeshare resale
scam works. |
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Two
operators of alleged tech support scams have agreed to settle FTC charges and give up their ill-gotten gains. According to the
complaints, Mikael Marczak, doing business as Virtual PC Solutions, and Sanjay
Agarwalla posed as legitimate computer security companies to deceive computer
owners into believing that their devices were riddled with viruses, spyware and
other malware. As part of its investigation, FTC staff discovered Marczak also
was telemarketing a debt relief program that allegedly violated the
Telemarketing Sales Rule (TSR). While the
stipulated final orders
resolve the FTC’s claims against Agarwalla and Marczak, litigation continues
against the remaining defendants in the actions related to the TSR.
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The FTC
objected to Pinnacle Entertainment, Inc.’s proposed $2.8 billion
acquisition of rival casino operator Ameristar Casinos, Inc., alleging that the
deal would reduce competition for customers near St. Louis, Missouri and Lake
Charles, Louisiana. The FTC charged that the acquisition would eliminate
beneficial competition between the casinos, including giving better odds, free
or lower-cost amenities, and a more enjoyable gambling experience for
customers. The FTC complaint also alleges that the deal would diminish
Pinnacle’s incentive to maintain or improve the quality of its casinos.
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The FTC has settled charges against a voice broadcasting
company for transmitting illegal robocalls to consumers in violation of the
TSR. A voice broadcaster is a company that uses computers to broadcast
pre-recorded messages to many recipients at one time. The FTC charged that Skyy Consulting, Inc., which
does business as CallFire, helped its clients place outbound pre-recorded
sales calls to people who hadn’t given written consent. As part of the
settlement, the company also will pay a
$75,000 civil penalty. |
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Crooks often combine
sophisticated technology with age-old tricks to get people to send money or
give out personal information, defrauding millions of people to the tune of
hundreds of millions of dollars a year. One thing that never changes: their
M.O. They follow the headlines. If you want to keep up with the latest scams in
the news – and find out how to recognize and report them – sign
up today for practical tips from
the FTC, the nation’s consumer protection agency.
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"Our message to
timeshare owners is simple: never pay for a promise, get everything in
writing first, and pay only after your unit is sold. Our message to timeshare
resale scammers is simple, too: law enforcement agencies at every level of
government are working together to put an end to this problem."
— Charles A. Harwood,
Acting Director of the FTC’s Bureau of Consumer Protection
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In a comment submitted to the Marine Stewardship
Council (MSC), the FTC has explained some factors to consider to ensure that the
MSC’s “Certified Sustainable Seafood” label complies with the FTC Act and the
Environmental Marketing Guides, aka the “Green Guides.” In short, the comment
says the MSC and any other third-party certifier should consider consumer
perception when developing or reviewing a certification system.
The FTC seeks comment on proposed amendments to
the TSR’s protections against bogus charges and services. One proposal would limit the use of certain
payment methods favored by con artists and scammers, including money transfers,
cash reload mechanisms, and unsigned checks.
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