Wednesday, September 19, 2018

Recreational Equipment Seller Settles FTC Charges for False "Made in USA" Claims

Four New York businesses that sell hockey pucks and other recreational equipment have agreed to settle an FTC lawsuit filed over allegations that the companies advertised their goods as being "Made in USA," when in reality they were made overseas. As part of the settlement, the defendants have been banned from "making unqualified U.S.-origin claims for their products, unless they can show that the products’ final assembly or processing -- and all significant processing -- take place in the United States, and that all or virtually all ingredients or components of the product are made and sourced in the United States." Read the FTC's press release about the settlements here.

FTC Shuts Down Another Alleged Business Coaching Scheme

The FTC filed a lawsuit against defendant Sean Brown for allegedly helping operate a business coaching scheme. Among the specific allegations, the FTC claimed that Brown and his company Digital Altitude, "falsely promised to provide individualized coaching from successful marketers, who in fact were just salespeople selling costlier membership levels." The FTC also alleges that the defendant misrepresented how much money individuals could make through the program. Businesses operating in spaces that the FTC and State AGs might consider to be "BizOps" should ensure that they reduce and resolve consumer complaints as quickly as possible. As a best practice, always refund customers who ask for their money back. Read more about this case here. Make sure you understand telemarketing rules and telemarketing regulations so that you can ensure 100 percent telemarketing compliance. Contact a telemarketing law firm or TCPA attorney if you need help with things like autodialer compliance,  telemarketing registrations, or robocall laws.

Man Imprisoned in Italy for Writing False TripAdvisor Reviews

A man in Italy has been put in jail by Italy's Postal and Communications Police for allegedly offering to write fake, positive reviews for businesses on TripAdvisor.com. Read more here. In the U.S., it is illegal to pay individuals to write reviews or testimonials without disclosing that the reviewer was compensated for doing so. If you violate that law, you could be sued by the FTC or a State Attorney General. Learn how to respond to an Attorney General in a telemarketing case.

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