Jun 4, 2020 | Consumer Protection, Employment & Technology Archive
In Settling FTC Allegations, HyperBeard, A Developer Of Apps Popular With Children, Agrees To Pay Fine And Delete Personal Information Allegedly Collected From Children Under 13
Kehoe Law Firm, P.C. is making consumers aware that on June 4, 2020, the FTC announced that a developer of apps that are popular with children has agreed to pay $150,000 and to delete personal information it illegally collected from children under 13 to settle Federal Trade Commission allegations.
In a complaint filed by the Department of Justice on behalf of the FTC, the FTC alleges that HyperBeard, Inc. violated the Children’s Online Privacy Protection Act Rule (“COPPA Rule”) by allowing third-party ad networks to collect personal information in the form of persistent identifiers to track users of the company’s child-directed apps, without notifying parents or obtaining verifiable parental consent. The ad networks used the identifiers to target ads to children using HyperBeard’s apps. The FTC complaint also names HyperBeard’s CEO, Alexander Kozachenko, and Managing Director, Antonio Uribe.
The COPPA Rule requires that child-directed websites, apps, and online services provide notice of their information practices and obtain parental consent prior to collecting personal information from children under 13, including the use of persistent identifiers for targeted advertising.
Many of the apps that HyperBeard offers are directed to children, including Axolochi, BunnyBuns, Chichens, Claberta, Clawbert, KleptoCats, KleptoCats 2, KleptoDogs, MonkeyNauts, and NomNoms, according to the FTC complaint. According to the FTC, the apps contain brightly colored, animated characters such as cats, dogs, bunnies, chicks, monkeys, and other cartoon characters, and are described in child-friendly terms like “super cute” and “silly.” For example, users of the KleptoCats apps send a cartoon cat out on a mission and the cat returns with surprises that users collect in a virtual room. The apps also allow users to pet, groom, feed, and dress their virtual cats.
Allegedly, according to the FTC, HyperBeard was aware that children were using its kids’ apps and promoted those same apps to children. From early 2017 through 2019, it promoted its apps on the kids’ entertainment website YayOMG. It also published children’s books and licensed other products, including stuffed animals and block construction sets, based on its apps’ characters.
As part of the proposed settlement, HyperBeard, Kozachenko, and Uribe are required to notify and obtain verifiable consent from parents for any child-directed app or website they offer that collects personal information from children under 13. They are also, according to the FTC, prohibited from using or benefitting from personal data they collected from children under 13 in violation of COPPA, and must destroy that data. The settlement includes a $4 million penalty, which will be suspended upon payment of $150,000 by HyperBeard due to its inability to pay the full amount. The full amount will be due if either the company or Kozachenko are found to have misrepresented their finances.
Source: Federal Trade Commission – FTC.gov
Jun 4, 2020 | Consumer Protection, Employment & Technology Archive
FTC Warns 35 Marketers To Stop Making Unsupported Claims That Their Products and Therapies Can Effectively Prevent Or Treat COVID-19
Kehoe Law Firm, P.C. is making consumers aware that on June 4, 2020, the Federal Trade Commission announced it has sent letters warning 35 more marketers nationwide to stop making unsubstantiated claims that their products and therapies can treat or prevent COVID-19, the disease caused by the novel coronavirus. This is the sixth set of warning letters the FTC has announced as part of its ongoing efforts to protect consumers from health-related COVID-19 scams. In all, the Commission has sent similar letters to more than 160 companies and individuals.
Most of the letters announced by the FTC target “treatments” offered in clinics or medical offices, including intravenous (“IV”) Vitamin C and D infusions, supposed stem cell therapy, and vitamin injections that may at first glance appear to be based in medicine or proven effective. However, currently, according to the FTC, there is no scientific evidence that these, or any, products or services can treat or cure COVID-19.
The following recipients of the FTC’s letters are grouped based on the type of therapy, product, or service they pitched as preventing or treating COVID-19:
Intravenous (IV) and Ozone Therapies, Immunity Boosting Injections
- Arizona Natural Medicine Physicians PLLC (Chandler, Arizona)
- Doll House MedSpa & Anti-Aging Clinic (San Antonio, Texas)
- Dr. Eric Nepute; Neptute Wellness Center (St. Louis, Missouri)
- East Valley Naturopathic Doctors (Mesa, Arizona)
- Enliven (Odessa, Texas)
- Gonino Center for Healing (Heath, Texas)
- Health Associates Medical Group (Sacramento, California)
- Innovation Compounding (Kennesaw, Georgia)
- Revival Hydration (San Francisco, California)
- Restore Med Clinic (Newport Beach, California)
- Sage Integrative Medicine Clinic (Edmonds, Washington)
- Tulsa Chiropractic Rehab (Tulsa, Oklahoma)
- Vero Clinics (Decatur, Illinois)
Stem Cell Treatments
Electromagnetic Field Blocking Patches
Essential Oils
- Cory’s SEOM (Special Essential Oil Mixes) (Escondido, California)
Homeopathic Treatments
Vitamins, Supplements, Silver, and Chinese Herbal Treatments
- Bixa Human (online only)
- Bodhi Glyphix (Wales Center, New York)
- Cho Acupuncture & Herbal Clinic (Norcross, Georgia)
- Dramov Naturopathic Medical Center (Tigard, Oregon)
- Dr. Don Colbert (Southlake, Texas)
- Evergreen Naturopathic (Spokane, Washington)
- GlyCop Co-op (Boise, Idaho)
- Hawaii Naturopathic Retreat (Hilo, Hawaii)
- Hot Springs Biofeedback (Texarkana, Texas)
- Kimbertouch Technologies (online only)
- Love Acupuncture & Wellness Group (Clackamas, Oregon)
- Natural Health 365 (Clermont, Florida)
- Organic Hawaii, LLC (Honolulu, Hawaii)
- Pure Prescriptions, Inc. (Carlsbad, California)
- The Feed (Boulder, Colorado)
- The Nutritional Healing Center of Ann Arbor (Ann Arbor, Michigan)
- Utopia Silver Supplements (Utopia, Texas)
In the letters, the FTC states that one or more of the efficacy claims made by the marketers are unsubstantiated, because they are not supported by scientific evidence, and therefore violate the FTC Act. The letters advise the recipients to immediately stop making all claims that their products can treat or cure COVID-19, and to notify the FTC within 48 hours about the specific actions they have taken to address the FTC’s concerns.
The FTC’s letters also note that if the false claims do not cease, the FTC may seek a federal court injunction and an order requiring money to be refunded to consumers. In April, the FTC announced its first case against a marketer of such products, Marc Ching, d/b/a Whole Leaf Organics.
Source: Federal Trade Commission – FTC.gov
Jun 4, 2020 | Securities Class Action Archive
Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors Hebron Technology Co., Ltd. (“Hebron” or the “Company”) (NASDAQ: HEBT) to determine whether Hebron issued false or misleading business information to investors.
On June 3, 2020, Grizzly Research presented a report which alleged that Hebron is an “insider enrichment scheme without economic basis,” and Hebron, according to Grizzly Research, “is the quintessential example why . . . tighter disclosure and auditing regulations [is needed] for US listed Chinese companies. [Grizzly Research] believe[s] HEBT has engaged in egregious wrongdoings that should result in immediate delisting.”
On this news, Hebron’s stock dropped significantly during intraday trading on June 3, 2020.
Hebron investors who purchased, or otherwise acquired, the Company’s common stock and suffered losses greater than $100,000 are encouraged to contact Kehoe Law Firm, P.C., Kevin Cauley, Director, Business Development, (215) 792-6676, Ext. 802, [email protected], [email protected], to discuss the securities investigation or potential legal claims.
Jun 4, 2020 | Securities Class Action Archive
Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors of ServiceMaster Global Holdings, Inc. (“ServiceMaster” or the “Company”) (NYSE: SERV) who purchased, or otherwise acquired, the common stock of ServiceMaster between February 26, 2019 and November 4, 2019, both dates inclusive (the “Class Period”).
Securities fraud class action complaints have been filed in United States District Court on behalf of all purchasers of ServiceMaster common stock between February 26, 2019 and November 4, 2019 seeking to pursue remedies under the Securities Exchange Act of 1934 against ServiceMaster and certain senior executives of the Company.
The securities investigation focuses on whether the ServiceMaster Defendants made materially false and/or misleading statements and omissions and/or failed to disclose adverse facts regarding ServiceMaster’s business, operations, and financial condition, such as whether ServiceMaster failed to properly inspect and treat for Formosan activity and costly litigation experienced by the Company from injured customers, as well as the Company’s attempts to mitigate the trend of costly litigation by taking remedial measures, including raising prices significantly for termite treatments in Mobile, Alabama to deter contract renewals.
ServiceMaster investors who purchased, or otherwise acquired, the Company’s common stock during the Class Period and suffered losses greater than $50K are encouraged to contact Kehoe Law Firm, P.C., Kevin Cauley, Director, Business Development, (215) 792-6676, Ext. 802, [email protected], [email protected], to discuss the securities investigation or potential legal claims.
Jun 2, 2020 | Consumer Protection, Employment & Technology Archive
Class Action Complaint Alleges Walmart Sent Unsolicited Telemarketing Text Messages
Kehoe Law Firm, P.C. is making consumers aware that on June 1, 2020 a class action lawsuit was filed against Walmart Inc. in United States District Court, Western District of Washington, for alleged violations of the Telephone Consumer Protection Act.
According to the complaint, Walmart, beginning on or about April 7, 2020, sent unsolicited text messages to the Plaintiff’s cell phone from 5-digit “short code” 851-66 to “promote[] Defendant’s pharmacy business and delivery services.”
The text messages Plaintiff received, according to the complaint, stated the following:
Do You Believe You Are a Victim of Illegal Robocalls, Text Messages, “Junk” Faxes or Telemarketing Sales Calls?
If you have received illegal robocalls, text messages, “junk” faxes or telemarketing sales calls, you may be able to recover at least $500 for each illegal call, text or fax you received and, possibly, as much as $1,500 for each illegal call, text message or facsimile that was made either willfully or knowingly in violation of the Telephone Consumer Protection Act.
To help evaluate your potential legal claims under the Telephone Consumer Protection Act, please complete KLF’s confidential Robocall Questionnaire or, if you prefer to speak with an attorney, please complete the form above on the right, e-mail [email protected] or contact Michael Yarnoff, Esq., [email protected], (215) 792-6676, Ext. 804, for a free, no-obligation evaluation of your potential legal rights.
