FTC investigation

Tapjoy Settles FTC Consumer Reward Investigation

January 11, 2021 by David Klein

On January 7, 2021, the Federal Trade Commission (“FTC”) announced that it had settled its consumer reward investigation into the business practices of Tapjoy, Inc. (“Tapjoy”), a mobile advertising company, over allegations that Tapjoy failed to provide users with promised rewards featured in various mobile games and applications. Under the terms of the proposed settlement, Tapjoy will be prohibited from misleading consumers about rewards that they can earn within mobile games. Tapjoy must also monitor and police its third-party advertiser partners to ensure that those partners deliver promised rewards to consumers.

What was alleged by the FTC?

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FTC Investigation Results in $774,755 in Consumer Refunds

December 4, 2020 by David Klein

The Federal Trade Commission (“FTC”) has settled an investigation into the business practices of A.S. Research, LLC (“A.S. Research) for allegedly making false and misleading health claims in connection with its advertising and sale of the supplement Synovia. 13,221 consumers who bought Synovia will receive checks totaling $774,755. The settlement with A.S. Research prohibits the company “from misrepresenting the results of any scientific study or endorsement and requires them to disclose any material connections they have with endorsers.” This FTC investigation and settlement serve as a good reminder to businesses that they must adhere to FTC marketing regulations or face stiff penalties and potential reputational harm.

How do businesses avoid FTC investigations?

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FTC Investigation Leads to its First Fake Reviews Settlement

February 28, 2019 by David Klein

February 28, 2019

A Federal Trade Commission (“FTC”) investigation of Cure Encapsulations, Inc. and its owner, Naftula Jacobowitz (the “Defendants”), has ended in a settlement that awaits court approval. In its complaint, the FTC alleges that Defendants made false and unsubstantiated claims concerning the efficacy of garcinia cambogia (the “Product”) as a weight-loss supplement and paid a third-party website operator (www.amazonverifiedreviews.com) to post fake Product reviews on Amazon.com. Pursuant to the terms of the FTC investigation settlement agreement, Defendants are prohibited from publishing weight-loss, appetite-suppression, fat-blocking, and disease-treatment claims concerning any dietary supplement, food or drug, unless those claims are substantiated by third-party clinical studies. In addition, the Defendants must notify consumers who purchased the Product of the FTC’s allegations/investigation and pay a judgment in the amount of $12.8 million (which will be suspended upon payment of $50,000 and certain unpaid income tax obligations).

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“Nobetes” Tablet FTC Investigation Ends in Settlement

December 7, 2018 by David Klein

December 7, 2018

The Federal Trade Commission (“FTC”) is a bipartisan federal agency charged with protecting consumers and promoting competition. The FTC seeks to protect consumers by enforcing laws preventing unfair, deceptive or fraudulent practices in the marketplace. It does so by conducting investigations and suing companies for alleged marketing violations. After an FTC investigation, on December 3, 2018, the FTC filed a complaint against Nobetes Corporation and two of its officers and directors, Marvin Silver and Jeffrey Fleitman, in the U.S. District Court for the Central District of California.

Why did the FTC Sue Nobetes Corporation and Two of its Officers?

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Inventor Promotion Business Settles FTC Investigation

May 22, 2018 by David Klein

May 22, 2018

The Federal Trade Commission (“FTC”) recently announced that it reached a proposed settlement in an alleged invention-promotion business scam with Mr. Scott Cooper and his companies, World Patent Marketing, Inc. and Desa Industries, Inc. (collectively “Defendants”). The FTC investigation led to the filing of a formal complaint against the Defendants alleging that they had violated Section 5(a) of the FTC Act by participating in deceptive and unfair acts or practices in the marketing and sale of invention promotion services.

What did the FTC allege violated the law?

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