Mar 26, 2018 | Consumer Protection, Employment & Technology Archive
Telemarketer Which Pitched Home Security Systems and Monitoring Services to Consumers Charged by FTC – Related Defendants Permanently Barred from Engaging in Abusive Telemarketing
On March 23, 2018, the Federal Trade Commission announced that it filed a complaint and motion for preliminary injunction in federal district court alleging that Alliance Security Inc. (“Alliance”), a home security installation company, and its founder, directly and through its authorized telemarketers, called millions of consumers whose numbers are on the National Do Not Call Registry. Two of Alliance’s authorized telemarketers and their principals also have agreed to settle charges that they made illegal calls on Alliance’s behalf.
According to the FTC, Alliance and its CEO and founder, Jasjit “Jay” Gotra (“Gotra”) are recidivist violators of the FTC’s Telemarketing Sales Rule. Gotra previously operated Alliance under the name Versatile Marketing Solutions, Inc., and settled FTC telemarketing- and robocall-related charges against them in a court order announced in April 2014. In the action announced by the FTC on March 23, 2018, however, the FTC alleges Alliance and Gotra never complied with the 2014 court order.
Defendants Alliance and Gotra Allegedly Made at Least 2 Million Calls in Violation of the Telemarketing Sales Rule
Allegedly, since the court entered the 2014 order, Alliance and Gotra have made or helped others make at least two million calls to consumers that violate the Telemarketing Sales Rule, including more than a million to numbers on the Do Not Call Registry. Alliance installs home security systems, and its employees allegedly make outbound calls to solicit the sale of the systems and associated security monitoring services.
Alliance also, according to the FTC, contracts with third-party telemarketers that make similar outbound calls pitching its products and services, including many to numbers on the Do Not Call Registry. Alliance, for example, hired defendants Defend America, LLC and Power Marketing Promotions, LLC, and their principals, and authorized them to market their products, leading to those companies also illegally calling consumers whose phone numbers are on the Do Not Call Registry.
The FTC’s complaint also charges Defend America and Power Marketing with violating the Telemarketing Sales Rule by not identifying the seller in their calls, as well as Alliance for telling the two companies not to identify it in calls to consumers. The FTC’s complaint also alleges Alliance and Power Marketing deceived consumers by misrepresenting themselves as calling on behalf of ADT, an unrelated home security company.
According to the complaint, even after Alliance learned about the deceptive calls, it failed to terminate its contracts with these telemarketers. Finally, the complaint alleges that Alliance and Gotra obtained consumer reports without having a permissible purpose, in violation of the Fair Credit Reporting Act.
Defend America and Power Marketing Defendants Agree to Settle the FTC’s Charges
The stipulated final order settling the charges against Defend America and its principal Jessica Merrick permanently bars them from telemarketing or assisting others in telemarketing, in addition to imposing a civil penalty of $2,296,500, which will be suspended based on inability to pay.
The stipulated final order settling the charges against Power Marketing and its principal Kevin Klink permanently bans them from selling home security and medical alert devices. Power Marketing also is banned from all telemarketing. Klink is banned from making robocalls or helping anyone else make them, from calling phone numbers on the Do Not Call Registry, unless a consumer directly contacts him to request a call, and from selling lists containing numbers on the Do Not Call Registry.
The order also bars Kevin Klink from abusive telemarketing practices and other Telemarketing Sales Rule violations related to abandoning outbound calls, failing to identify the seller in a telemarketing call, and using spoofed caller ID numbers. Further, it imposes a civil penalty of $3,293,512 against Power Marketing and Kevin Klink, which will be partially suspended due to their inability to pay, upon payment of $300,000 to the FTC.
The proposed court settlements announced by the FTC resolve the FTC’s charges against individual defendants Jessica Merrick and Kevin Klink, and corporate defendants Defend America LLC and Power Marketing Promotions LLC. Litigation continues against Gotra and Alliance, formerly known as Versatile Marketing Solutions, Inc.; VMS Alarms; VMS; Alliance Security; Alliance Home Protection; and AH Protection.
Source: FTC.gov
Mar 24, 2018 | Consumer Protection, Employment & Technology Archive
Defendants Falsely Claimed People Would Learn Secrets for Making Money on Amazon
On March 23, 2018, the Federal Trade Commission announced that it has charged a business opportunity scheme with falsely claiming that people who buy the defendants’ expensive “Amazing Wealth System” will learn “secrets for making money on Amazon” and likely earn thousands of dollars a month.
The defendants, AWS LLC, FBA Distributors LLC, FBA Stores LLC, Info Pros LLC, Online Auction Learning Center Inc. (Massachusetts), Online Auction Learning Center Inc. (Nevada), Christopher F. Bowser, Adam S. Bowser, and Jody Marshall, have been charged with violating the FTC Act and the Business Opportunity Rule. According to the FTC’s complaint, the “Defendants’ earnings claims regarding the Amazing Wealth System are false or unsubstantiated,” and “[f]ew, if any, consumers who purchases Defendants’ Amazing Wealth System earn the income Defendants advertise.”
According to the FTC, the defendants, who have no affiliation with Amazon.com, have made false or unsubstantiated earnings claims, such as, “Get started on Amazon and Make $5,000-$10,000 in the next 30 days. . . even if you have never sold anything online before.” They charge from $995 to more than $35,000 for a purported exclusive “plug-and-play system” that allows consumers to create a profitable online business selling products on Amazon.com.
Many of the strategies and techniques included in the “system,” such as posting fake product reviews, are, according to the FTC, deceptive and violate Amazon.com’s rules. As a result, purchasers who deploy the defendants’ system often experience problems with their Amazon stores, including suspension and the loss of their ability to sell on Amazon.com. According to the FTC’s complaint:
Defendants lure consumers into purchasing expensive business opportunities with purported “secrets for making money on Amazon.’ They represent that purchasers are likely to “create financial freedom” and earn thousands of dollars a month by implementing Defendants “systems for success on Amazon.” Contrary to Defendants’ promises, most, if not virtually all, purchasers do not earn the advertised income. Moreover, many elements of Defendants’ “system” violate Amazon.com Inc. ‘s policies. As a result, purchasers who deploy Defendants’ “system” often experience problems with their Amazon stores, including suspension and the loss of their ability to sell on Amazon.com.
In perpetrating their scheme, Defendants have violated the FTC Act and the Business Opportunity Rule by, among other things: (1) making false or unsubstantiated earnings claims; and (2) failing to furnish prospective purchasers with required disclosure documents.
(Emphasis added)
The court has appointed a temporary receiver over the corporate defendants, barred the defendants from making deceptive marketing claims, and frozen their assets pending resolution of the FTC’s motion for a preliminary injunction. The FTC seeks to end the alleged illegal practices and obtain money for return to injured consumers.
The United States District Court for the District of Nevada entered a temporary restraining order against the defendants on March 14, 2018.
Source: FTC.gov
Mar 23, 2018 | Consumer Protection, Employment & Technology Archive
Kehoe Law Firm, P.C. is making consumers aware that on March 13, 2018, a class action complaint was filed against Tip Top Capital Inc., an entity “engaged in soliciting and providing business loans to consumers,” which, beginning in or around March 2018, allegedly, contacted the Plaintiff’s cell phone from (323) 813-9507 to sell or solicit Tip Top’s services. According to the complaint, Tip Top Capital used an automatic telephone dialing system, and when Plaintiff answered the telephone call from Tip Top Capital, he heard a long pause before a representative began speaking to Plaintiff. The class action seeks statutory damages and other available legal or equitable remedies resulting from the alleged illegal actions of Tip Top Capital for negligently, knowingly and/or willfully contacting Plaintiff’s cell phone in violation of the TCPA. The class action complaint was filed in U.S. District Court, Central District of California (2:18-cv-02103)
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.
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.
Mar 23, 2018 | Consumer Protection, Employment & Technology Archive
Kehoe Law Firm, P.C. is making consumers aware that on January 26, 2018, a class action complaint was filed against Future Now Energy, LLC for alleged violations of the Telephone Consumer Protection Act and the Illinois Consumer Fraud Act. In June 2016, the Plaintiff, according to the complaint, received automated telephone calls to his cell phone from (630) 701-7913 and (630) 246-4201. Allegedly, the calls to the Plaintiff’s cellular telephone were placed by Future Now Energy using a predictive dialer and without the prior authorization of the Plaintiff. The class action seeks, among other relief, statutory damages and injunctive relief. The class action complaint was filed in U.S. District Court, Northern District of Illinois, Eastern Division (1:18-cv-00580).
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.
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.
Mar 22, 2018 | Consumer Protection, Employment & Technology Archive
New York AG and FTC Settlements Ban Abusive Debt Collectors from Debt Collection Business and from Buying or Selling Debt
On March 22, 2018, the FTC announced that the operators of a deceptive and abusive debt collection scheme have been banned from the debt collection business and from buying or selling debt under settlements with the Federal Trade Commission and the New York Attorney General’s Office.
As alleged in the complaint, the defendants used threats and abusive language, including false threats that consumers would be arrested or sued, to collect supposed debts. The court halted the operation pending resolution of the case.
Besides the banned activities, the settlement orders prohibit the defendants from misrepresenting financial products and services and from profiting from customers’ personal information collected as part of the challenged practices.
The orders against Travell Thomas, 4 Star Resolution LLC, Profile Management Inc., International Recovery Service LLC, Check Solutions Services Inc., Check Fraud Service LLC and Fourstar Revenue Management LLC and against Maurice Sessum impose a $30 million judgment that will be partially suspended upon the surrender of certain assets.
The order against Charles Blakely III and Merchant Recovery Service, Inc. imposes an $18,789,000 judgment that will be partially suspended upon the surrender of certain assets.
The assets to be surrendered in these settlements include more than $1 million in corporate and individual assets frozen by the court. 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 was 2-0, and the United States District Court for the Western District of New York entered the orders on March 20, 2018.
The U.S. Attorney’s Office for the Southern District of New York obtained 14 guilty pleas from individuals involved in the scheme, including Travell Thomas and Maurice Sessum who were each sentenced to more than 7 years in prison.
For additional information, please click 4 Star Resolution, LLC.
Source: FTC.gov
Mar 21, 2018 | Consumer Protection, Employment & Technology Archive
Orbitz Says Names, Addresses, Dates of Birth, Payment Card Information Possibly Exposed
On March 20, 2018, Engadget reported (“Orbitz data breach exposed 880,000 payment cards”) that
Orbitz announced . . . that it has discovered evidence of a data breach, making it just another of the many companies recently afflicted. Between October and December of last year, hackers may have accessed consumer data submitted to a legacy website between January 1, 2016 and June 22, 2016. Additionally, Orbitz partner platform data submitted between January 1, 2016 and December 22, 2017 may also have been breached. The company discovered signs of the breach on March 1st and estimates that approximately 880,000 credit cards may have been impacted. (Emphasis added)
According to the statement provided by Orbitz about the data security incident:
What Happened?
While conducting an investigation of a legacy Orbitz travel booking platform (the “platform”), Orbitz determined on March 1, 2018 that there was evidence suggesting that, between October 1, 2017 and December 22, 2017, an attacker may have accessed certain personal information, stored on this consumer and business partner platform, that was submitted for certain purchases made between January 1, 2016 and June 22, 2016 (for Orbitz platform customers) and between January 1, 2016 and December 22, 2017 (for certain partners’ customers). Orbitz immediately began investigating the incident and made every effort to remediate the issue, including taking swift action to eliminate and prevent unauthorized access to the platform.
What Information Was Involved?
On March 1, 2018, Orbitz determined that the personal information that was likely accessed may have included full name, payment card information, date of birth, phone number, email address, physical and/or billing address, and gender.
What Information Was Not Involved?
Orbitz’ investigation to date has not found any evidence of unauthorized access to other types of personal information, including passport and travel itinerary information. Additionally, Orbitz can assure U.S. customers that Social Security numbers were not involved in this incident, as these are not collected nor held on the platform.
Orbitz Business Partners Impacted by the Data Breach Unknown
The Wall Street Journal reported (“Orbitz Discloses Possible Data Breach Affecting 880,000 Payment Cards”) that “Orbitz didn’t disclose which business partners were affected by the breach, but American Express Co. . . . said separately that travel booked through its representatives and through Amextravel.com had been affected by the cyberattack.” The Wall Street Journal also reported that “American Express said American Express Global Business Travel and the platforms that manage credit-card accounts weren’t impacted by the attack.” See also (“Orbitz Discloses Possible Data Breach Affecting 880,000 Payment Cards–Update”).
Consumers Whose Information May Have Been Compromised by the Orbitz Data Breach
If you have received a notice or otherwise believe that your personal information may have been stolen or compromised, please contact Michael Yarnoff, Esq., [email protected], (215) 792-6676, Ext. 804, complete the form above on the right or e-mail [email protected] for a free evaluation of your potential legal rights.
