DeVry to Pay $100 Million to Settle FTC Charges
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DeVry University agreed to settle charges that it exaggerated the job prospects of its graduates. The FTC says DeVry misled prospective students by claiming 90 percent of its graduates landed jobs within six months of graduation, and that 15 percent had higher incomes, compared to graduates of other schools. Nearly half of the $100 million settlement will go to qualifying students misled by the ads. The remainder will go to forgiving or cancelling debts that students would have incurred, and to students to pay off debt already incurred to attend DeVry between 2008 and 2015.
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FTC Charges Turn for Deceptively Tracking Consumers
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To settle FTC charges, Turn, a digital advertising company, has agreed to stop misrepresenting its online tracking capabilities and provide an effective way for people to opt out of tracking. The FTC says Turn kept tracking people’s online and mobile activities even after people opted out of tracking. The FTC also said Turn’s opt-out mechanism only applied to mobile browsers, and did not block tailored ads on mobile applications,as the company had claimed.
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FTC Says CarMax and Others Failed to Disclose Safety Recalls
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Three auto retailers, including CarMax, agreed to settle FTC chargesthat they failed to sufficiently disclose that some of their cars were actually subject to unaddressed safety recalls – even after the companies touted how thoroughly they inspect their vehicles. The FTC’s proposed consent orders will prohibit these retailers from making unqualified inspection or safety-related claims about their used vehicles subject to safety recalls.
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Pharma Company Will Divest Products per FTC Order
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The FTC required divestitures to maintain competition for a variety of vaccines for dogs and cats, as well as parasite control products for cattle and sheep. Pharmaceutical company Boehringer Ingelheim agreed to divest five types of animal health products in the United States in order to settle FTC charges that its proposed asset swap with Sanofi could lead to higher prices for these products. The proposed consent order preserves competition by requiring Boehringer Ingelconsuheim to divest the companion animal vaccines to Eli Lilly and the company’s Elanco Animal Health division, and the parasite control products to Bayer AG.
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FTC Hosts “Internet of Things” Contest
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How can you know whether your internet-connected devices are updated to protect your privacy and security? The FTC is hosting a prize competition, The Internet of Things (IoT) Home Inspector Challenge, to see who has the answer. The winning tool would help protect people from security vulnerabilities caused by out-of-date software – and there’s a $25,000 prize for the winning team or person. The challenge opens for submission on March 1, 2017.
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Uber Agrees to Pay $20 Million to Settle FTC Charges That it Recruited Prospective Drivers with Exaggerated Earnings Claims
Agency also alleges Uber misled drivers about its vehicle financing program
Uber Technologies, the San Francisco-based ride-hailing company, has agreed to pay $20 million to resolve Federal Trade Commission charges that it misled prospective drivers with exaggerated earning claims and claims about financing through its Vehicle Solutions Program. The $20 million will be used to provide refunds to affected drivers across the country.
“Many consumers sign up to drive for Uber, but they shouldn’t be taken for a ride about their earnings potential or the cost of financing a car through Uber,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “This settlement will put millions of dollars back in Uber drivers’ pockets.”
According to the FTC’s complaint, in its efforts to attract prospective drivers, Uber exaggerated the yearly and hourly income drivers could make in certain cities, and misled prospective drivers about the terms of its vehicle financing options.
The FTC alleges that Uber claimed on its website that uberX drivers’ annual median income was more than $90,000 in New York and over $74,000 in San Francisco. The FTC alleges, however, that drivers’ annual median income was actually $61,000 in New York and $53,000 in San Francisco. In all, less than 10 percent of all drivers in those cities earned the yearly income Uber touted. The FTC also alleges that Uber made high hourly earnings claims in job listings, including on Craigslist, but that the typical Uber driver failed to earn those advertised hourly amounts in various cities.
The complaint also alleges that Uber claimed its Vehicle Solutions Program would provide drivers with the “best financing options available,” regardless of the driver’s credit history, and told consumers they could “own a car for as little as $20/day” ($140/week) or lease a car with “payments as low as $17 per day” ($119/week), and “starting at $119/week.” Despite Uber’s claims, from at least late 2013 through April 2015, the median weekly purchase and lease payments exceeded $160 and $200, respectively, the FTC alleges. Uber failed to control or monitor the terms and conditions of the auto financing agreements through its program and in fact, its drivers received worse rates on average than consumers with similar credit scores typically would obtain, according to the FTC’s complaint. In addition, Uber claimed its drivers could receive leases with unlimited mileage through its program when in fact, the leases came with mileage limits, the FTC alleges.
In addition to imposing a $20 million judgment against Uber, the stipulated order prohibits the company from misrepresenting drivers’ earnings and auto finance and lease terms. The order also bars Uber from making false, misleading, or unsubstantiated representations about drivers’ income; programs offering or advertising vehicles or vehicle financing or leasing; and the terms and conditions of any vehicle financing or leasing.
Puerto Rico Ophthalmologist Group Settles FTC Charges that Members Agreed to an Illegal Boycott of Health Plan
OFTACOOP organized a boycott to defeat health plan’s attempt to control costs, FTC alleges
OFTACOOP, a Puerto Rico ophthalmologist cooperative, has agreed to settle Federal Trade Commission charges that its actions harmed competition.
The complaint charges that OFTACOOP – also known as Cooperativa de Médico Oftalmólogos de Puerto Rico – unlawfully orchestrated an agreement among competing ophthalmologists to refuse to deal with a health plan, MCS Advantage, Inc., and its network administrator, Eye Management of Puerto Rico, LLC.
OFTACOOP’s concerted refusal to deal forced MCS to abandon its plan to engage Eye Management to create a lower-cost network of ophthalmologists. MCS was also forced to maintain its then-current reimbursement rates paid to ophthalmologists. According to the complaint, OFTACOOP restrained competition without any justification, in violation of federal antitrust law.
OFTACOOP has about 100 member ophthalmologists. MCS provides healthcare services to enrollees of its Medicare Advantage plans, and must offer a network with a sufficient number of physicians to provide its enrollees with adequate access to healthcare services.
The complaint alleges that, in an effort to lower its costs after Medicare reduced its premiums, MCS asked Eye Management to create and manage a network of ophthalmologists in Puerto Rico. In response to letters from MCS and Eye Management to individual doctors offering lower rates for the new network, OFTACOOP urged ophthalmologists to refuse to sign the proposed contract and to unite in refusing to deal with Eye Management. In August 2014, Eye Management informed MCS that it had been unable to form an adequate network of ophthalmologists. The ophthalmologists then refused to contract directly with MCS at lower rates thereby forcing MCS to maintain its current reimbursement rates.
The proposed consent order prohibits OFTACOOP from entering into or facilitating agreements between or among ophthalmologists:
to refuse to deal, or threaten to refuse to deal, with any payor regarding any term, including price terms, or
not to deal individually with any payor, or not to deal with any payor other than through OFTACOOP.
The order also prohibits information exchanges to facilitate any prohibited conduct, and it bars any attempts to engage in any prohibited conduct. OFTACOOP is also barred from encouraging, suggesting, advising, pressuring, inducing, or trying to induce anyone to engage in any prohibited conduct.
The Commission vote to issue the complaint and accept the proposed consent order was 3-0. The FTC will publish the consent agreement package in the Federal Register shortly. The agreement will be subject to public comment for 30 days, beginning today and continuing through Feb. 21, 2017, after which the Commission will decide whether to make the proposed consent order final. Comments can be filed electronically or in paper form by following the instructions in the “Supplementary Information” section of the Federal Register notice.
NOTE: The Commission issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $40,000 per day.
FTC Announces Annual Update of Size of Transaction Thresholds for Premerger Notification Filings and Interlocking Directorates
For 2017, the size-of-transaction threshold for reporting proposed mergers and acquisitions under Section 7A of the Clayton Act will increase from $78.2 million to $80.8 million. The new 2017 thresholds under Section 8 of the Act that trigger prohibitions on certain interlocking memberships on corporate boards of directors are $32,914,000 for Section 8(a)(l ) and $3,291,400 for Section 8(a)(2)(A). The FTC revises the thresholds annually, based on the change in gross national product.
A full listing of current thresholds can be found on the FTC’s website, which will be updated once the revised thresholds are published in the Federal Register.
The revised thresholds under Section 7A of the Clayton Act will apply to all transactions that close on or after the effective date of the notice, which is 30 days after its publication in the Federal Register. The thresholds for Section 8 of the Clayton Act become effective upon publication in the Federal Register.
The votes to approve the Federal Register notices announcing the threshold revisions were 3-0. (FTC File No. P859910; the staff contact for Section 7A is Nora Whitehead, Bureau of Competition, 202-326-3262; the staff contact for Section 8 is James Mongoven, Bureau of Competition, 202-326-2879)
Western Union Admits Anti-Money Laundering Violations and Settles Consumer Fraud Charges, Forfeits $586 Million in Settlement with FTC and Justice Department
Company also agrees to implement anti-fraud program and enhanced compliance obligations in agreements with federal authorities
The Western Union Company (Western Union), a global money services business headquartered in Englewood, Colorado, has agreed to forfeit $586 million and enter into agreements with the Federal Trade Commission, the Justice Department, and the U.S. Attorneys’ Offices of the Middle District of Pennsylvania, the Central District of California, the Eastern District of Pennsylvania and the Southern District of Florida. In its agreement with the Justice Department, Western Union admits to criminal violations including willfully failing to maintain an effective anti-money laundering program and aiding and abetting wire fraud.
FTC Chairwoman Edith Ramirez; Acting Assistant Attorney General David Bitkower of the Justice Department’s Criminal Division; U.S. Attorney Bruce D. Brandler of the Middle District of Pennsylvania; U.S. Attorney Eileen M. Decker of the Central District of California; Acting U.S. Attorney Louis D. Lappen of the Eastern District of Pennsylvania; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Inspector in Charge David W. Bosch of the U.S. Postal Inspection Service (USPIS) Philadelphia Division; Special Agent in Charge Deirdre Fike of the FBI’s Los Angeles Field Office; Chief Richard Weber of Internal Revenue Service-Criminal Investigation (IRS-CI); Special Agent in Charge Marlon V. Miller of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Philadelphia; and Special Agent in Charge Stephen Carroll of the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau (FRB-CFPB OIG) Eastern Region made the announcement.
“Western Union owes a responsibility to American consumers to guard against fraud, but instead the company looked the other way, and its system facilitated scammers and rip-offs,” said FTC Chairwoman Edith Ramirez. “The agreements we are announcing today will ensure Western Union changes the way it conducts its business and provides more than a half billion dollars for refunds to consumers who were harmed by the company’s unlawful behavior.”
“As this case shows, wiring money can be the fastest way to send it – directly into the pockets of criminals and scam artists,” said Acting Assistant Attorney General Bitkower. “Western Union is now paying the price for placing profits ahead of its own customers. Together with our colleagues, the Criminal Division will both hold to account those who facilitate fraud and abuse of vulnerable populations, and also work to recoup losses and compensate victims.”
“The U.S. Attorney’s Office for the Middle District of Pennsylvania has a long history of prosecuting corrupt Western Union Agents,” said U.S. Attorney Brandler. “Since 2001 our office, in conjunction with the U.S. Postal Inspection Service, has charged and convicted 26 Western Union Agents in the United States and Canada who conspired with international fraudsters to defraud tens of thousands of U.S. residents via various forms of mass marketing schemes. I am gratified that the deferred prosecution agreement reached today with Western Union ensures that $586 million will be available to compensate the many victims of these frauds.”
“Our investigation uncovered hundreds of millions of dollars being sent to China in structured transactions designed to avoid the reporting requirements of the Bank Secrecy Act, and much of the money was sent to China by illegal immigrants to pay their human smugglers,” said U.S. Attorney Decker. “In a case being prosecuted by my office, a Western Union agent has pleaded guilty to federal charges of structuring transactions – illegal conduct the company knew about for at least five years. Western Union documents indicate that its employees fought to keep this agent – as well as several other high-volume independent agents in New York City – working for Western Union because of the high volume of their activity. This action today will ensure that Western Union effectively controls its agents and prevents the use of its money transfer system for illegal purposes.”
“Western Union’s failure to comply with anti-money laundering laws provided fraudsters and other criminals with a means to transfer criminal proceeds and victimize innocent people,” said Acting U.S. Attorney Lappen. “Western Union has agreed to forfeit $586 million, the largest forfeiture ever imposed on a money services business, and has agreed to take specific steps to ensure that it complies with the law in the future. This office will continue to vigorously enforce the anti-money laundering laws and regulations, which are necessary to prevent those engaged in fraud, terrorism, human trafficking, drug dealing and other crimes from using companies like Western Union to further their illegal activity.”
“Western Union, the largest money service business in the world, has admitted to a flawed corporate culture that failed to provide a checks and balances approach to combat criminal practices,” said U.S. Attorney Ferrer. “Western Union’s failure to implement proper controls and discipline agents that violated compliances policies enabled the proliferation of illegal gambling, money laundering and fraud-related schemes. Western Union’s conduct resulted in the processing of hundreds of millions of dollars in prohibited transactions. Today’s historic agreement, involving the largest financial forfeiture by a money service business, makes it clear that all corporations and their agents will be held accountable for conduct that circumvents compliance programs designed to prevent criminal conduct.”
“The U.S. Postal Inspection Service has been at the forefront of protecting consumers from fraud schemes for many years,” said Inspector in Charge Bosch. “When private businesses participate in the actions that Western Union was involved in, it makes it easier for criminals to victimize innocent citizens. Our commitment to bringing these criminals to justice will not waiver, and we look forward to facilitating compensation to victims.”
“Los Angeles-defendant Wang’s company was considered to be among the largest Western Union agents in the United States as over $310 million was sent to China in a span of five years, half of which was illegally structured and transmitted using false identification,” said Assistant Director in Charge Fike. “Rather than ensuring their high volume agents were operating above-board, Western Union rewarded them without regard to the blatant lack of compliance and illegal practices taking place. This settlement should go a long way in thwarting the proceeds of illicit transactions being sent to China to fund human smuggling or drug trafficking, as well as to interrupt the ease with which scam artists flout U.S. banking regulations in schemes devised to defraud vulnerable Americans.”
“As a major player in the money transmittal business, Western Union had an obligation to its customers to ensure they offered honest services, which include upholding the Bank Secrecy Act, as well as other U.S. laws,” said Chief Weber. “Western Union’s blatant disregard of their anti-money laundering compliance responsibilities was criminal and significant. IRS-CI special agents – working with their investigative agency partners – uncovered the massive financial fraud and is proud to be part of this historic criminal resolution.”
“Today’s announcement of this significant settlement highlights the positive result of HSI’s collaboration with our partner agencies to hold Western Union accountable for their failure to comply with Bank Secrecy laws that preserve the integrity of the financial system of the United States,” said Special Agent in Charge Miller. “As a result of this settlement, Western Union now answers for these violations. I thank the Federal Reserve Board’s Office of the Inspector General for their partnership in this investigation.”
Western Union agreed to settle charges by the FTC in a complaint filed today in the U.S. District Court for the Middle District of Pennsylvania, alleging that the company’s conduct violated the FTC Act. The complaint charges that for many years, fraudsters around the world have used Western Union’s money transfer system even though the company has long been aware of the problem, and that some Western Union agents have been complicit in fraud. The FTC’s complaint alleges that Western Union declined to put in place effective anti-fraud policies and procedures and has failed to act promptly against problem agents. Western Union has identified many of the problem agents but has profited from their actions by not promptly suspending and terminating them.
In resolving the FTC charges, Western Union agreed to a monetary judgment of $586 million and to implement and maintain a comprehensive anti-fraud program with training for its agents and their front line associates, monitoring to detect and prevent fraud-induced money transfers, due diligence on all new and renewing company agents, and suspension or termination of noncompliant agents.
The FTC order prohibits Western Union from transmitting a money transfer that it knows or reasonably should know is fraud-induced, and requires it to:
block money transfers sent to any person who is the subject of a fraud report;
provide clear and conspicuous consumer fraud warnings on its paper and electronic money transfer forms;
increase the availability of websites and telephone numbers that enable consumers to file fraud complaints; and
refund a fraudulently induced money transfer if the company failed to comply with its anti-fraud procedures in connection with that transaction.
In addition, consistent with the telemarketing sales rule, Western Union must not process a money transfer that it knows or should know is payment for a telemarketing transaction. The company’s compliance with the order will be monitored for three years by an independent compliance auditor.
According to admissions contained in the deferred prosecution agreement (DPA) with the Justice Department and the accompanying statement of facts, Western Union violated U.S. laws—the Bank Secrecy Act (BSA) and anti-fraud statutes—by processing hundreds of thousands of transactions for Western Union agents and others involved in an international consumer fraud scheme.
As part of the scheme, fraudsters contacted victims in the U.S. and falsely posed as family members in need or promised prizes or job opportunities. The fraudsters directed the victims to send money through Western Union to help their relative or claim their prize. Various Western Union agents were complicit in these fraud schemes, often processing the fraud payments for the fraudsters in return for a cut of the fraud proceeds.
Western Union knew of but failed to take corrective action against Western Union agents involved in or facilitating fraud-related transactions. Beginning in at least 2004, Western Union recorded customer complaints about fraudulently induced payments in what are known as consumer fraud reports (CFRs). In 2004, Western Union’s Corporate Security Department proposed global guidelines for discipline and suspension of Western Union agents that processed a materially elevated number of fraud transactions. In these guidelines, the Corporate Security Department effectively recommended automatically suspending any agent that paid 15 CFRs within 120 days. Had Western Union implemented these proposed guidelines, it would have prevented significant fraud losses to victims and would have resulted in corrective action against more than 2,000 agents worldwide between 2004 and 2012.
Court documents also show Western Union’s BSA failures spanned eight years and involved, among other things, the acquisition of a significant agent that Western Union knew prior to the acquisition had an ineffective AML program and had contracted with other agents that were facilitating significant levels of consumer fraud. Despite this knowledge, Western Union moved forward with the acquisition and did not remedy the AML failures or terminate the high-fraud agents.
Similarly, Western Union failed to terminate or discipline agents who repeatedly violated the BSA and Western Union policy through their structuring activity in the Central District of California and the Eastern District of Pennsylvania. The BSA requires financial institutions, including money services businesses such as Western Union, to file currency transaction reports (CTRs) for transactions in currency greater than $10,000 in a single day. To evade the filing of a CTR and identification requirements, criminals will often structure their currency transactions so that no single transaction exceeds the $10,000 threshold. Financial institutions are required to report suspected structuring where the aggregate number of transactions by or on behalf of any person exceeds more than $10,000 during one business day. Western Union knew that certain of its U.S. Agents were allowing or aiding and abetting structuring by their customers. Rather than taking corrective action to eliminate structuring at and by its agents, Western Union, among other things, allowed agents to continue sending transactions through Western Union’s system and paid agents bonuses. Despite repeated compliance review identifying suspicious or illegal behavior by its agents, Western Union almost never identified the suspicious activity those agents engaged in in its required reports to law enforcement
Finally, Western Union has been on notice since at least December 1997, that individuals use its money transfer system to send illegal gambling transactions from Florida to offshore sportsbooks. Western Union knew that gambling transactions presented a heightened risk of money laundering and that through at least 2012, certain procedures it implemented were not effective at limiting transactions with characteristics indicative of illegal gaming from the United States to other countries.
Western Union entered into a DPA in connection with a two-count felony criminal information filed today in the Middle District of Pennsylvania charging Western Union with willfully failing to maintain an effective AML program and aiding and abetting wire fraud. Pursuant to the DPA, Western Union has agreed to forfeit $586 million and also agreed to enhanced compliance obligations to prevent a repeat of the charged conduct, including creating policies and procedures:
for corrective action against agents that pose an unacceptable risk of money laundering or have demonstrated systemic, willful or repeated lapses in compliance;
that ensure that its agents around the world will adhere to U.S. regulatory and AML standards; and
that ensure that the company will report suspicious or illegal activity by its agents or related to consumer fraud reports.
Since 2001, the department has charged and convicted 29 owners or employees of Western Union agents for their roles in fraudulent and structured transactions. The U.S. Attorney’s Office of the Middle District of Pennsylvania has charged and convicted 26 Western Union agent owners and employees for fraud-related violations; the U.S. Attorney’s Office of the Central District of California has secured a guilty plea from one Western Union agent for BSA violations, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania has secured guilty pleas for BSA violations of two other individuals associated with Western Union agents for BSA violations.
USPIS’s Philadelphia Division’s Harrisburg, Pennsylvania, Office; the FBI’s Los Angeles Field Office; IRS-CI; HSI; FRB-CFPB OIG; Department of Treasury OIG; the Orange County Regional Narcotics Suppression Program Task Force; the Broward County, Florida Sherriff’s Offices; and Department of Labor investigated the case. Trial Attorney Margaret A. Moeser of the Criminal Division’s Money Laundering and Asset Recovery Section’s Bank Integrity Unit, Assistant U.S. Attorney Kim Douglas Daniel of the Middle District of Pennsylvania, Assistant U.S. Attorney Gregory W. Staples of the Central District of California, Assistant U.S. Attorneys Judy Smith and Floyd Miller of the Eastern District of Pennsylvania and Assistant U.S. Attorney Randall D. Katz of the Southern District of Florida are prosecuting the case. Asset forfeiture attorneys in each U.S. Attorney’s Office and the Money Laundering and Asset Recovery Section provided significant assistance in this matter. The department appreciates the significant cooperation and assistance provided by the FTC in this matter.
Persons who believe they were victims of the fraud scheme should visit the Department of Justice’s victim website for instructions on how to request compensation through the Victim Asset Recovery Program.
The Victim Compensation Program, operated by the Money Laundering and Asset Recovery Section, is composed of a team of experienced professionals, including attorneys, accountants, auditors and claims analysts. In hundreds of cases, the Victim Compensation Program has successfully used its specialized expertise to efficiently convert forfeited assets to victim recoveries.
The Commission votes authorizing the staff to file the complaint and stipulated final order were 3-0. The complaint and the stipulated final order were filed in the U.S. District Court for the Middle District of Pennsylvania.
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DeVry University agreed to settle charges that it exaggerated the job prospects of its graduates. The FTC says DeVry misled prospective students by claiming 90 percent of its graduates landed jobs within six months of graduation, and that 15 percent had higher incomes, compared to graduates of other schools. Nearly half of the $100 million settlement will go to qualifying students misled by the ads. The remainder will go to forgiving or cancelling debts that students would have incurred, and to students to pay off debt already incurred to attend DeVry between 2008 and 2015.
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FTC Charges Turn for Deceptively Tracking Consumers
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To settle FTC charges, Turn, a digital advertising company, has agreed to stop misrepresenting its online tracking capabilities and provide an effective way for people to opt out of tracking. The FTC says Turn kept tracking people’s online and mobile activities even after people opted out of tracking. The FTC also said Turn’s opt-out mechanism only applied to mobile browsers, and did not block tailored ads on mobile applications,as the company had claimed.
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FTC Says CarMax and Others Failed to Disclose Safety Recalls
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Three auto retailers, including CarMax, agreed to settle FTC chargesthat they failed to sufficiently disclose that some of their cars were actually subject to unaddressed safety recalls – even after the companies touted how thoroughly they inspect their vehicles. The FTC’s proposed consent orders will prohibit these retailers from making unqualified inspection or safety-related claims about their used vehicles subject to safety recalls.
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Pharma Company Will Divest Products per FTC Order
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The FTC required divestitures to maintain competition for a variety of vaccines for dogs and cats, as well as parasite control products for cattle and sheep. Pharmaceutical company Boehringer Ingelheim agreed to divest five types of animal health products in the United States in order to settle FTC charges that its proposed asset swap with Sanofi could lead to higher prices for these products. The proposed consent order preserves competition by requiring Boehringer Ingelconsuheim to divest the companion animal vaccines to Eli Lilly and the company’s Elanco Animal Health division, and the parasite control products to Bayer AG.
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FTC Hosts “Internet of Things” Contest
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How can you know whether your internet-connected devices are updated to protect your privacy and security? The FTC is hosting a prize competition, The Internet of Things (IoT) Home Inspector Challenge, to see who has the answer. The winning tool would help protect people from security vulnerabilities caused by out-of-date software – and there’s a $25,000 prize for the winning team or person. The challenge opens for submission on March 1, 2017.
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“When people are making important decisions about their education and their future, they should not be misled by deceptive employment and earnings claims. The FTC has secured compensation for the many students who were harmed, and I am pleased that DeVry is changing its practices.”
— FTC Chairwoman Edith Ramirez on DeVry University case
Dating Site Exposed Millions of Users’ Data, FTC Says
Operators of Toronto-based AshleyMadison.com have agreed to settle Federal Trade Commission and state charges that they deceived users and did not protect 36 million users’ account and profile information in relation to a massive July 2015 data breach of their network. In addition to other provisions, a federal court imposed an $8.75 million judgment against the company.
FTC Says California Naturel Made False “All Natural” Claims
The FTC has granted a summary decision against California Naturel, Inc. for falsely advertising its sunscreen product as “all natural.” Per the company’s admission, eight percent of its sunscreen formula is a synthetic ingredient. The final order says the company may not make those claims going forward.
Blood-Pressure App Marketers Allegedly Made False Claims
The FTC alleges Aura falsely claimed its Instant Blood Pressure paid app could replace traditional blood pressure cuffs and that its readings are just as accurate. Aura’s app reported blood pressure based on data calculated by Aura using age, gender, height, and weight. The FTC says the blood pressure readings from the app were inaccurate compared to those of a traditional blood pressure cuff.
Alleged Tech Support Schemers to Pay Back $10 Million
Operators of a Florida-based tech support scheme will pay $10 million in consumer redress to settle charges they used aggressive tactics to sell tech support products and services. The FTC says they falsely claimed to find viruses and malware on peoples’ computers.
FTC Requests Comment on Proposal to Amend Contact Lens Rule
The FTC is seeking comments on an amendment of the Contact Lens Rule that would require prescribers to obtain a “signed patient acknowledgment form” after releasing a contact lens prescription to a patient. The proposed change is designed to make sure that prescribers are providing copies of prescriptions to patients once the contact lens fitting is complete. The FTC requests comments on this proposed change by January 30, 2017.
Your Money Back
Update on Herbalife Refunds
Roughly 350,000 checks totaling $200 million have been sent to people who lost money trying to run an Herbalife business. The company allegedly deceived consumers into believing they could earn substantial money selling weight loss, nutritional supplement, and personal care products.
The Tax Club Refunds
Over 20,000 checks totaling more than $18 million are going out to people who lost money to The Tax Club and applied for a refund from the FTC. The company allegedly deceived people by saying their services would help home-based businesses succeed, and by promising services that people never received.
One Technologies Refunds
The FTC sent refund checks ranging from $90 to $150 to people who lost money on websitesincluding FreeScore360.com, FreeScoreOnline.com and ScoreSense.com. According to the FTC, people went to the sites to access their credit scores but were enrolled in credit monitoring programs and charged monthly fees without their consent.
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