Pyramid scheme or not: Herbalife to pay $200M

The nearly four-year battle between the FTC and Herbalife has come to an end.  In mid-July, Herbalife agreed to pay $200 million to compensate consumers to settle charges that Herbalife “deceived consumers into believing they could earn substantial money selling diet, nutritional supplement, and personal care products,” the FTC said in a recent press release.  […]

“Bogus” weight loss claims lead to FTC settlement

In the spring of 2015, the FTC sought and obtained a TRO, preliminary injunction, asset freeze, and appointment of a receiver against Sale Slash LLC, a Glendale, California operation that the FTC alleged used millions of illegal spam emails, along with false weight loss claims and fake, unauthorized endorsements from celebrities like Oprah Winfrey, to […]

Suspended judgment, “avalanche clauses,” and the FTC; Arizona federal judge lifts suspended judgment in HCG case

From time to time you will read that, when the FTC has settled a case, any potential monetary judgment is “partially suspended based on the defendants’ inability to pay.”  The FTC refers to allowing settling defendants to avoid paying a judgment in full as a suspended judgment.  However, if a settling defendant was less than […]

Lead generation in education focus of FTC in 2016

In late October 2015, the FTC hosted a workshop on lead generation entitled “Follow the Lead,” which sought to explore the growing use of online lead generation in various industries, including education. According to the FTC: Lead generation  is the practice of identifying or cultivating consumer interest in a product or service, and distributing this […]

Ashworth College Becomes Latest to Join the FTC’s Most Disgraced List

Georgia-based Ashworth College, a for-profit college with approximately 50,000 students, has agreed to settle charges that it misled students about career training and credit transfers.

Utah-Based Linden Financial Group to Pay $28.6 Million to Settle FTC Charges

Marketers who helped promote a Utah-based home loan modification scheme will be banned from the mortgage relief and debt relief industries, the FTC has announced.  The newly-announced court settlement resolves FTC charges that the marketers violated the law by promoting the loan modification scam, which conned consumers into paying hefty fees for worthless mortgage relief […]