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The FTC and 32 partners
in the U.S. and Canada announced Operation
Ruse Control, a law
enforcement sweep to protect people who buy or lease a car. 252 enforcement
actions were brought against dishonest car dealers. The charges ranged from deceptive
advertising and criminal auto loan application fraud, to odometer fraud,
deceptive add-on loan servicing fees, and deceptive marketing of car title
loans. The effort includes six new cases the FTC brought against companies that
tricked people with deceptive auto sales, financing and leasing. |
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BMW of North America LLC agreed to
settle the FTC’s charges that the company told MINI owners they would void
their warranty unless they used MINI parts, and MINI dealers, to do maintenance
and repair work on their cars. According to the FTC, this violated the
Magnuson-Moss Warranty Act. Under the settlement, BMW will not threaten to void
MINI owners’ warranties for using other parts and service providers. The
settlement also prohibits BMW from making unsupported claims that routine
maintenance by MINI dealers is the only way to ensure that a car will operate
safely or maintain its value.
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The FTC filed a
complaint against FTC
Credit Solutions, for deceiving people
by claiming to be affiliated with the Federal Trade Commission. The FTC says
the company marketed bogus credit repair services to people who speak Spanish,
and then illegally charged them fees before providing any service. According to
the real FTC, “FTC Credit Solutions” also falsely promised to remove negative
information from credit reports, and to improve credit scores. |
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According to the FTC, an
affiliate marketing network called LeadClick
Media was responsible for false claims made in a marketing scheme that sold
acai berry and “colon cleanse” weight-loss products. The FTC says LeanSpa,
which hired LeadClick to push its products, used a “free trial” ploy to enroll
people into a recurring – and hard-to-cancel – $79.99 per month purchase
program. The FTC says LeadClick’s network lured people to LeanSpa’s online
store by using fake news websites with what appeared to be reviews and
endorsements from journalists and customers. The company was ordered to pay $16
million, which will be used for customer refunds. |
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The FTC mailed 17,606 refund checks totaling almost $955,000
to people who lost money buying the AdvaCAL calcium supplement marketed by Lane
Labs-USA Inc. According to the FTC, Lane Labs made false and unsubstantiated
claims that AdvaCAL was the only calcium supplement that could increase bone
density. The company also claimed that AdvaCAL was equal or better than
prescription drugs used to treat osteoporosis. Eligible customers who receive
the checks must cash them by May 18, 2015, or they will become void. And
remember, the FTC will never ask you to pay anything or give personal
information before you can cash a refund check.
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Par Petroleum
Corporation will terminate its storage and throughput rights at a key gasoline
terminal in Hawaii, to settle FTC charges that its $107 million acquisition of
Mid Pac Petroleum, would reduce competition, and likely lead to higher gasoline
prices in Hawaii. According to the FTC, Par and Mid Pac are two of only four
companies that handle bulk supplies of Hawaii-grade gasoline blendstock, which
is gasoline before it is blended with ethanol to make finished gasoline. By
acquiring Mid Pac’s rights in a terminal located on Oahu, Par could impair the
ability of Aloha, the other company with terminal rights, to compete. |
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Do
you know what to do when your personal email gets
hacked? How about when malware hijacks your home computer? The FTC has two new
videos to help: Hacked Email:
What to Do and Hijacked
Computer: What to Do.
Use them yourself, or pass them on to friends and family. For more information
on about how to be safe, secure and responsible online, visit onguardonline.gov.
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"For
most people, buying a car is one of the largest purchases they’ll make. Car ads
must be truthful, loan terms must be clear, and dealer practices must be
honest. That’s why our partners are working together to crack down on deceptive
marketing about car sales, leasing and financing."
— Jessica
Rich, Director of the FTC’s Bureau of Consumer Protection
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The FTC sent 358 refund checks totaling nearly $940,000 to people who
lost money with National Business Consultant’s, Inc. business opportunity
scheme. According to the FTC, the company misled people about how much money
they would make as business or sales consultants, and how they would get
assignments. The FTC says the company also misled people about refunding
deposits to consultants, and provided false references. Visit the FTC’s refund page for more information.
The FTC is mailing 10,620 refund checks totaling
more than $416,000 to people who lost money buying two skin creams marketed by
L’Occitane, Inc. The FTC says the company falsely claimed their Almond
Beautiful Shape and Almond Shaping Delight skin creams had clinically proven
“body slimming” capabilities. Checks must be cashed by May 19, 2015, or they
will become void.
Network Solutions LLC, a domain name registrar and web
hosting provider, agreed to settle charges after the FTC said the company
misled people who bought its web hosting service with a “30 Day Money Back
Guarantee.” According to the complaint, although the company guaranteed people
full refunds if they canceled the services within 30 days, they did not clearly
disclose that they would withhold part of their refunds as a cancellation fee.
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IN OTHER NEWS:
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SHARE THIS:
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Did you receive a
sweepstakes letter from the FTC? It’s a government imposter scam. Report it to
the FTC. http://go.usa.gov/3Dk6P
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April is financial
literacy month. Make smart buying decisions and save more money, with tips from
the FTC. http://go.usa.gov/3Dkt5
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Applying for a job?
Check out the FTC’s newly revised Background Checks brochure for answers to
common questions. http://go.usa.gov/3DkuC
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