FTC-2503

JCAP101.com - FTC-PR-2503FTC-PR-2503 (Federal Trade Commission News – March, 2025) (2025)

FTC-PR-2503 – The FTC’s mission is protecting the public from deceptive or unfair business practices and from unfair methods of competition through law enforcement, advocacy, research, and education.

Source:  https://www.ftc.gov/news-events/news/press-releases?items_per_page=20&search=&date_range%5Bmin%5D=2025-03-01&date_range%5Bmax%5D=2025-03-31&field_competition_topics=All&field_consumer_protection_topics=All&field_industry_target_id=All

Mar. 24, 2025

  • FTC Suit Against E-Commerce Business Opportunity Scam Leads to Permanent Bans for Operators – 
    • The Federal Trade Commission is requiring operators of a deceptive business opportunity to pay hundreds of thousands of dollars to settle allegations they misled consumers with false promises of big returns selling goods through Amazon and Walmart.
    • Under the settlement orders entered by the court, Trevor Duffy Young and Wessam Baiz, along with two companies associated with Baiz, will turn over the profits they made from the alleged scam, which operated under the names Lunar Capital Ventures, Ecom Genie and Profitable Automation, and before that as Valiant Consultants.

Mar. 19, 2025

  • FTC Chairman Andrew N. Ferguson Statement on Former Commissioners Slaughter and Bedoya
    • Federal Trade Commission Chairman Andrew N. Ferguson issued the following statement on Former Commissioners Rebecca Kelly Slaughter and Alvaro Bedoya:
      • “President Donald J. Trump is the head of the executive branch and is vested with all of the executive power in our government.  I have no doubts about his constitutional authority to remove Commissioners, which is necessary to ensure democratic accountability for our government.  The Federal Trade Commission will continue its tireless work to protect consumers, lower prices, and police anticompetitive behavior.  I wish Commissioners Slaughter and Bedoya well, and I thank them for their service.”

Mar. 18, 2025

  • FTC Acts to Stop ‘Click Profit’ Online Business Opportunity that Has Cost Consumers At Least $14 Million
    • At the request of the Federal Trade Commission, a federal court temporarily halted a business opportunity scheme known as Click Profit, which took millions from consumers by falsely promising consumers that they could earn big profits through online sales.
    • In a complaint, the FTC alleged that Click Profit and its owners deceived consumers by promising they could make large sums in “passive income” using a proprietary system powered by artificial intelligence. The system supposedly enables consumers to sell goods through online platforms such as Amazon, Walmart, and TikTok. Click Profit also deceived consumers by claiming to be affiliated with major companies like Nike and Disney as a ploy to convince consumers to turn over tens of thousands of dollars each, according to the complaint.
    • “Click Profit misled consumers by falsely promising them guaranteed passive income using cutting-edge AI technology and exclusive brand partnerships,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “Their deception caused individual consumers to lose tens of thousands of dollars while the Click Profit’s operators enriched themselves. The FTC is working to hold the defendants accountable and secure redress for their victims, who have collectively lost millions of dollars.”

Mar. 17, 2025

  • FTC Staff Reaffirm Opposition to Proposed Indiana Hospital Merger
    • Today, Federal Trade Commission staff again urged the Indiana Department of Health to deny Union Hospital, Inc. (Union Health) and Terre Haute Regional Hospital, L.P.’s (THRH) application to merge.
    • FTC staff said Union Health and THRH’s second attempt to merge under a proposed certificate of public advantage, also known as a COPA, presents the same anticompetitive harms as their original application did, according to the FTC’s comment letter. Union Health and THRH’s COPA application would shield the proposed merger from antitrust scrutiny. The FTC warned that the merger poses substantial anticompetitive risks such as higher healthcare costs for patients and lower wages for hospital workers.
    • “This repackaged COPA application presents the same problems as before. Competition consistently results in better outcomes for patients and workers than consolidation subject to COPAs,” said Clarke Edwards, Acting Director of the FTC’s Office of Policy Planning. “The Indiana Department of Health should deny this attempt by Vigo County’s only two hospitals to eliminate competition and avoid antitrust review.”

March 14, 2025

  • New Report Shows FTC Returned $337.3 Million to Consumers in 2024
    • As a result of the agency’s law enforcement actions, the Federal Trade Commission sent $337.3 million in refunds to consumers in 2024, according to the FTC’s annual report on refunds released today.
    • “Getting money back for people across the country is a top priority for the FTC,” said Chris Mufarrige, Director of the Bureau of Consumer Protection. “We will relentlessly pursue refunds for Americans who lost money to unlawful practices.”
    • The FTC Annual Report on Refunds to Consumers provides a breakdown of the total amount refunded by the FTC nationally, as well as the amount sent to consumers in each state. The report also includes a list of cases in which the agency sent first distribution payments in 2024. For example, the agency sent $99.3 million to consumers who were charged for sham health plans marketed by Benefytt Technologies.

March 13, 2025

  • FTC Sends More Than $934,000 in Refunds to Consumers Harmed by Vroom’s Failed Delivery Promises
    • The Federal Trade Commission is sending more than $934,000 in refunds to consumers who were harmed by online used car dealer Vroom’s shipment delays.
    • The FTC charged in July 2024 that Vroom failed to follow the Mail, Internet, and Telephone Order Rule, the Pre-Sale Availability Rule, and the Used Car Rule. The FTC’s complaint alleged the company misrepresented that it thoroughly examined all vehicles before listing them for sale and failed to obtain consumers’ consent to shipment delays or provide prompt refunds to consumers when cars weren’t delivered in the time promised. The complaint also alleged that Vroom violated the Used Car Rule by not providing consumers the Buyers Guide until late in the purchase process and that the guides were often missing required information. Finally, the complaint alleged that Vroom also failed to provide warranty information required by law.
    • The FTC is using money obtained from a settlement with Vroom, also announced in July 2024, to compensate consumers affected by Vroom’s failed delivery promises. The settlement order also prohibits the company from further misleading consumers about inspections or shipping and requires Vroom to provide required disclosures.

March 12, 2025

  • FTC Sends More Than $15.5 Million in Refunds to Consumers Affected by Career Step’s Deceptive Job Placement and Employer Partnerships Claims
    • The Federal Trade Commission is sending more than $15.5 million in refunds to consumers, including servicemembers and their spouses, lured by online career-training company Career Step’s deceptive ads and false claims about its training programs.
    • The FTC alleged that Career Step, LLC targeted servicemembers and their spouses using false claims about job placement and career outcomes, externships, and hiring partnerships with prominent companies. The company used deceptive incentivized reviews to promote its services and marketed its services through military-focused publications, such as Military.com, and events sponsored by the military, the FTC alleged.
    • As part of a settlement, Career Step paid more than $15.5 million that the FTC is using to compensate some students harmed by the company’s deceptive advertising. The settlement also required Career Step to cancel nearly $28 million in unpaid balances owed by current or former students who enrolled between February 2020 and February 2023. Other debts, such as federal and private student loans or military benefits, are not affected by this settlement. The stipulated order also prohibits Career Step from deceptively advertising any educational product or service in the future.

March 10, 2025

  • FTC Sends More than $25.5 Million to Consumers Impacted by Tech Support Firms’ Scam
    • The Federal Trade Commission is sending payments totaling more than $25.5 million to consumers who were tricked into signing up for computer repair services through the deceptive marketing tactics of two tech support companies.
    • The FTC alleged in March 2024 that Restoro Cyprus Limited and Reimage Cyprus Limited, both based in Cyprus, violated the FTC Act and the Telemarking Sales Rule by deceiving consumers into buying computer repair services.
    • The FTC is returning money it obtained from the companies as part of a settlement order with Restoro and Reimage. The order also prohibited the companies from misrepresenting security or performance issues related to the sale, marketing or distribution of any product or service, and from engaging in deceptive telemarketing.
    • The FTC will send 736,375 PayPal payments on March 13 and 14 to consumers who paid for computer repair services. Consumers who are eligible for a payment will get an email between now and March 13. Recipients should redeem their PayPal payment within 30 days.
  • New FTC Data Show a Big Jump in Reported Losses to Fraud to $12.5 Billion in 2024
    • Newly released Federal Trade Commission data show that consumers reported losing more than $12.5 billion to fraud in 2024, which represents a 25% increase over the prior year.
    • According to the FTC’s data book, this number is not driven by an increase in fraud reports, which remained stable. Instead, the percentage of people who reported losing money to a fraud or scam increased by double digits. In 2023, 27% of people who reported a fraud said they lost money, while in 2024, that figure jumped to 38%.
    • Consumers reported losing more money to investment scams—$5.7 billion—than any other category in 2024. That amount represents a 24% increase over 2023. The second highest reported loss amount came from imposter scams, with $2.95 billion reported lost. In 2024, consumers reported losing more money to scams where they paid with bank transfers or cryptocurrency than all other payment methods combined.
    • “The data we’re releasing today shows that scammers’ tactics are constantly evolving,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “The FTC is monitoring those trends closely and working hard to protect the American people from fraud.”

March 7, 2025

  • FTC Takes Action to Stop Sprawling ‘Growth Cave’ Business Opportunity and Credit Repair Scam
    • As a result of a Federal Trade Commission lawsuit, a federal court has temporarily halted the operations of a wide-ranging business opportunity and credit repair scam that has operated under the name “Growth Cave” since at least 2020.
    • The FTC’s complaint against the operation and its owners and officers, Lucas Lee-Tyson, Osmany Batte (also known as “Ozzie Blessed”), and Jordan Marksberry, alleges that the Growth Cave operation has taken approximately $50 million from consumers using false promises of huge income.
    • “Consumers seeking to start a business deserve an honest chance—not false promises of reliable income and expert help,” said Chris Mufarrige, the FTC’s Director of the Bureau of Consumer Protection. “The FTC has its eye on business opportunity schemes like this one and will take decisive action to stop them.”
    • In videos, Lee-Tyson and Batte have claimed to be experts who have made significant money through the programs and techniques they sell and who are ready to share their supposed expertise with consumers—for a price. In these videos, Lee-Tyson portrays himself as a marketing guru and self-made millionaire. Batte, according to the complaint, implies that he contributes to Growth Cave’s success with his ability to fix negative “mindsets” and his certification in hypnosis. Lee-Tyson, Batte, and Marksberry post videos of their lavish lifestyles as proof of their programs’ earning potential, but according to the complaint those lifestyles are funded by the consumers who lost money to Growth Cave’s bogus programs.

March 6, 2025

  • FTC Challenges Medical Device Coatings Deal
    • The Federal Trade Commission today sued to block GTCR BC Holdings, LLC’s (GTCR) acquisition of Surmodics, Inc. (Surmodics), alleging that the deal, which seeks to combine the two largest manufacturers of critical medical device coatings, is anticompetitive.
    • The FTC charges that private equity firm GTCR’s proposed acquisition of Surmodics would create a combined company controlling more than 50% of the market for outsourced hydrophilic coatings. These coatings are often used by medical device manufacturers and are applied to lifesaving medical devices such as catheters and guidewires.
    • “Medical device makers rely on high-quality coatings in designing and bringing to market life-saving devices, such as neurovascular catheters,” said Daniel Guarnera, Director of the FTC’s Bureau of Competition. “This merger threatens to disrupt competitive dynamics that have ultimately benefited patients. Today, the FTC is stepping in to protect patients from this unlawful acquisition.”
    • GTCR currently owns a majority stake in Biocoat, Inc., which is the second-largest provider of outsourced hydrophilic coatings. Surmodics is the largest provider of outsourced hydrophilic coatings.
  • FTC Sends Refunds to Consumers Deceived by Pure Green Coffee Weight Loss Ads
    • The Federal Trade Commission is sending more than $905,000 in refunds to consumers who bought Pure Green Coffee, a sham weight loss product marketed using false health claims, bogus testimonials, and fake news websites by NPB Advertising.
    • The FTC sued NPB Advertising, its principals and related companies in May 2014. The 2015 amended complaint charged them with deceptively promoting Pure Green Coffee. Most of the defendants settled the FTC’s charges in November 2015. The FTC won its suit against the ringleader of the operation in November 2016, and engaged in extensive efforts to collect on the judgment.
    • The FTC is sending checks and PayPal payments to 39,977 affected consumers. Recipients should cash their checks within 90 days, as indicated on the check, or redeem their PayPal payments within 30 days. Consumers who have questions about their payment should contact the refund administrator, Epiq Systems, at 877-839-1696, or visit the FTC’s website to view frequently asked questions about the refund process. The Commission never requires people to pay money or provide account information to get a refund.

March 4, 2025

  • FTC Secures Initial Win in Small Business Finance Scheme Case Against Seek Capital
    • The Federal Trade Commission secured an initial win in its case against Seek Capital and the company’s founder and CEO, Roy Ferman, after the U.S. Court for the Central District of California granted the FTC’s motion for a preliminary injunction.
    • Under the preliminary injunction granted by the district court, Seek Capital is prohibited from making false claims related to small business loans or lines of credit and is forbidden from contacting any consumers whose information the company obtained before February 20, 2025.
    • According to the FTC’s complaint filed in November 2024, Seek Capital targets new and aspiring small business owners looking for loans or lines of credit to open or grow their businesses. The company falsely advertises that it can secure business loans or lines of credit and instead charges clients thousands of dollars simply to open credit cards in the owners’ names. These actions have cost small business owners more than $37 million.
    • The district court granted the FTC’s motion for a preliminary injunction on February 20, 2025, finding that the FTC was likely to succeed on the merits of all its claims. The court entered the FTC’s proposed order in full and found that the requested relief was necessary and appropriate given that Seek Capital and Ferman were continuing to collect on invoices to consumers who “fell victim to their deceptive scheme.” The court found that the injunction was necessary to mitigate harm pending trial.

March 3, 2025

  • FTC Action Leads to Court Order Halting Phantom Debt Collection Scheme That Took Millions from Consumers and Threatened Consumers’ Credit, Homes, and Employment
    • As a result of a Federal Trade Commission lawsuit, a federal court has temporarily halted the operations and frozen the assets of a phantom debt collection scheme and its operators. The scheme has operated under numerous names, including Blackrock Services, Blackstone Legal Group, Capital Legal Services, Quest Legal Group, Viking Legal Services, and others.
    • According to the FTC’s complaint, the operators of this scheme are Ryan and Mitchell Evans and their affiliated companies. Debt collectors working for the scheme’s operators and their affiliated companies have sent consumers deceptive warning and collection letters or called them directly, claiming that consumers owed a debt of some kind and threatening legal action, wage garnishment, negative impacts to consumers’ credit, and even arrest if they don’t pay. The debts described in these letters and calls never existed, according to the complaint, and the defendants have no basis to make legal threats toward consumers.
    • The complaint further alleges that the defendants have sent letters and made phone calls to consumers claiming they owed money to a payday lender, and that the purported “law firm” contacting the consumer will imminently be filing suit against the consumer if the consumer does not pay up. The letters and calls also claim that consumers’ credit will be damaged by the fictitious debt, and that if consumers agree to pay to settle that debt, the harm to their credit could be lessened.
    • All of the claims in these letters and calls are false, according to the complaint.
Updated: March 26, 2025 at 5:00 pm