Sep 25, 2018 | Consumer Protection, Employment & Technology Archive
On September 24, 2018, a class action complaint was filed in United States District Court, Central District of California, against Subway Franchisee Advertising Fund Trust, Ltd. (“Subway”) for “negligently and/or intentionally contacting Plaintiff on her cellular telephone, in violation of the Telephone Consumer Protection Act.”
According to the complaint, Defendant Subway, a corporation which “provides marketing and advertising services for Subway restaurants,” sent “one or more automated marketing text messages to [Plaintiff’s] cellular telephone number . . . from short code 782-929.”
Subway, allegedly, sent an automated marketing text message to Plaintiff which stated:
FREE CHIPS RULE! Right now @SUBWAY, get ANY bag of chips FREE with a sub purchase. Exp 12/6: http://mfon.us/rk6srrfdjue HELP/STOP call 8447887525
When the Plaintiff sent a “STOP” reply to the unwanted text, she, allegedly, received “an immediate computer-generated responsive text” that stated:
Subway: You have been unsubscribed from all programs on 782929 and will no longer receive any text alerts. Q’s? Reply HELP. Msg & data rates may apply.
According to the class action complaint, Plaintiff, however, received a subsequent automated text message which stated:
Your weekly SUBWAY offer is waiting. Don’t miss out! Expires 12/6: http://mfon.us/rk6srrfdjue HELP/STOP call 8447887525
The class action seeks, among other things, statutory damages and injunctive relief.
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.
Sep 21, 2018 | Consumer Protection, Employment & Technology Archive
On September 21, 2018, the FTC announced that the operators of an illegal debt collection scheme have agreed to be permanently banned from the debt collection business in order to settle FTC charges that they falsely threatened to have people arrested if their debts were not paid.
The defendants, Gregory MacKinnon, Angela Burdorf, Vantage Point Services LLC and Payment Management Solutions, and Joseph Ciffa and Bonified Payment Solutions Inc., falsely claimed consumers would spend up to 120 days in jail or pay thousands of dollars in bail, according to a complaint filed by the FTC and the New York Attorney General’s Office.
According to the complaint, the defendants also failed to provide information about their identities during phone calls, or information about the supposed debt within five days of a call, as required by law, and illegally added unauthorized amounts to consumer’s debts.
The settlement orders also prohibit these defendants from misrepresenting material facts about financial-related products and services, profiting from customers’ personal information collected as part of the challenged practices, and failing to dispose of such information properly.
The orders impose a judgment of $22.5 million against Gregory MacKinnon, Vantage Point Services LLC, Joseph Ciffa and Bonified Payment Solutions, Inc. The orders impose a judgment of $4.4 million against Angela Burdorf and Payment Management Solutions Inc. The judgment against Ciffa and Bonified Payment Solutions will be suspended due to their inability to pay. The full judgment against Ciffa and Bonified Payment Solutions will become due immediately if they are found to have misrepresented their financial condition.
The FTC vote approving the proposed stipulated order against Gregory MacKinnon, Angela Burdorf, Vantage Point Services and Payment Management Solutions was 5-0. The FTC vote approving the proposed stipulated order against Ciffa and Bonified Payment Solutions was 5-0. The U.S. District Court for the Western District of New York entered the orders on September 17, 2018, and July 16, 2018, respectively.
Source: FTC.gov
Sep 21, 2018 | Consumer Protection, Employment & Technology Archive
The FTC announced that beginning September 21, 2018, consumers concerned about identity theft or data breaches can freeze their credit and place one-year fraud alerts for free.
Under the new Economic Growth, Regulatory Relief, and Consumer Protection Act, consumers in some states – those who previously had to pay fees to freeze their credit – will no longer have to do so.
Credit Freeze
A credit freeze, also known as a security freeze, restricts access to a consumer’s credit file, making it harder for identity thieves to open new accounts in the consumer’s name. The new law also allows parents to freeze for free the credit of their children who are under 16, while guardians, conservators, and those with a valid power of attorney can get a free freeze for their dependents.
In addition, the new law extends the duration of a fraud alert on a consumer’s credit report from 90 days to one year. A fraud alert requires businesses that check a consumer’s credit to get the consumer’s approval before opening a new account.
As part of its work to implement the new law, the Federal Trade Commission has updated its IdentityTheft.gov website with credit bureau contact information, making it easier for consumers to take advantage of the new provisions outlined in the law.
To place a credit freeze on their accounts, consumers will need to contact all three nationwide credit bureaus: Equifax, Experian, and TransUnion. Whether consumers ask for a freeze online or by phone, the credit bureau must put the freeze in place within one business day. When consumers request to lift the freeze by phone or online, the credit bureaus must take that action within one hour. (If consumers make these requests by mail, the agency must place or lift the freeze within three business days.)
Fraud Alert
To place a fraud alert, consumers need only contact one of the three credit bureaus, which will notify the other two bureaus.
According to the FTC, credit freezes and fraud alerts are two important steps consumers can take to help prevent identity theft. Identity theft was the second biggest category of consumer complaints reported to the FTC in 2017 — making up nearly 14 percent of all the consumer complaints filed last year. Consumers who believe they have been the victim of identity theft can report it and receive a personalized recovery plan at IdentityTheft.gov.
For more information, see “New Credit Law FAQs” and “Extended Fraud Alerts and Credit Freezes”
Source: FTC.gov
Sep 7, 2018 | Consumer Protection, Employment & Technology Archive
On September 7, 2018, the FTC reported that the operators of a Georgia-based debt collection business that allegedly used false claims and threats to get people to pay debts – including debts they did not owe or that the defendants had no authority to collect – have been banned from the debt collection business and from buying or selling debt, under settlements with the Federal Trade Commission.
According to the FTC’s complaint, the defendants’ debt collection business model was based on falsely claiming to consumers that they had committed a crime and would be sued, have their wages garnished, or be put in prison if they did not pay purported debts. In many instances, the defendants collected on debts consumers had already paid or that the defendants otherwise had no authority to collect. They also, according to the FTC, illegally contacted consumers’ employers and other third parties, as well as failed to provide written notices and disclaimers required by law.
The settlement orders also prohibit the defendants from misrepresentations regarding any financial products and services, and from profiting from or failing to properly dispose of customers’ personal information collected as part of the challenged practices.
Each order imposes a $3,462,664 judgment that will be partially suspended, due to the defendants’ inability to pay, when they have surrendered certain assets. In each case, the full judgment will become due immediately if the defendants are found to have misrepresented their financial condition.
The FTC vote approving the proposed stipulated orders against Lamar Snow, Global Processing Solutions LLC, Intrinsic Solutions LLC, North Center Collections Inc and Diverse Financial Enterprises Inc., Jahaan McDuffie, Capital Security Investments LLC and American Credit Adjusters LLC, and Glentis Wallace, also known as Glen Wallace, was 5-0. The United States District Court, Northern District of Georgia, Atlanta Division, entered the orders on July 17, 2018.
Default judgment was entered by the Court against the remaining defendants—Advanced Mediation Group, LLC, Apex National Services, LLC, Mirage Distribution, LLC, and Mitchell & Maxwell, LLC—on September 4, 2018.
For related case information, please click here.
Source: FTC.gov
Sep 4, 2018 | Consumer Protection, Employment & Technology Archive
On September 4, 2018, the Securities and Exchange Commission announced that it charged a telecommunications expense management company for its use of fraudulent accounting practices that artificially boosted company revenues between 2013 and 2015. Four former members of the company’s senior management team were also charged for their roles in the alleged misconduct.
As alleged in the SEC’s complaint, Tangoe Inc., formerly a public company headquartered in Connecticut, improperly recognized approximately $40 million of revenue out of the total of $566 million reported between 2013 and 2015. In some instances, Tangoe allegedly reported revenue prematurely for work that had not been performed, including service prepayments, and for transactions that did not produce any revenue at all. The SEC alleged that Donald J. Farias, a Tangoe executive, falsified business records, some of which were provided to Tangoe’s external auditors to support revenue recognition decisions.
The SEC’s complaint, filed in federal court in Connecticut, charged Tangoe, its former CEO, Albert R. Subbloie, former CFO, Gary R. Martino, former vice president of finance, Thomas H. Beach, and former senior vice president of expense management operations, Donald J. Farias. Each is charged with violating provisions of the federal securities laws.
Tangoe, Subbloie, Martino, and Beach have agreed to settle the SEC’s charges without admitting or denying the allegations. They agreed to pay penalties in the amount of $1.5 million, $100,000, $50,000, and $20,000, respectively. The settlement is subject to court approval.
Source: SEC.gov
Aug 21, 2018 | Consumer Protection, Employment & Technology Archive
On August 21, 2018, the Securities and Exchange Commission announced that it settled charges with two former top officers of Endurance International Group Holdings Inc. for overstating the company’s subscriber base, and charged a former executive of Constant Contact Inc. for making similar misrepresentations.
The SEC’s orders find that Endurance’s former chief executive Hari Ravichandran and former chief financial officer Waruna Ellawala knowingly provided inflated subscriber figures for the Massachusetts-based online marketing company. The SEC also filed a complaint in United States District Court in Massachusetts alleging that former Constant Contact CFO Harpreet Grewal hid its slowing customer growth from investors and inflated its publicly reported subscriber numbers. Constant Contact became a subsidiary of Endurance after it was acquired by it in 2016.
The SEC filed a settled enforcement action in June against Endurance and Constant Contact in which Endurance agreed to pay an $8 million penalty. In the latest action, Ravichandran and Ellawala agreed to settle the charges without admitting or denying them and pay $1.38 million and $34,000 respectively in disgorgement, interest, and penalties. They also agreed to cease and desist from further violations of various antifraud, reporting, books and records, and internal controls provisions of the federal securities laws.
Source: SEC.gov
