[{"url":"https://www.ftc.gov/business-guidance/blog/2014/10/first-ftc-rosca-case-challenges-bogus-bogo-free-claims","titre":"First FTC ROSCA case challenges bogus BOGO and \"free\" claims","pubDate":"Wed, 07 Oct 2026 08:05:50 +0200","source":"FTC USA Business Blog Posts","description":"First FTC ROSCA case challenges bogus BOGO and \"free\" claims wfg-adm109 October 21, 2014 | 12:02PM First FTC ROSCA case challenges bogus BOGO and \"free\" claims By Lesley Fair It’s called ROSCA – the Restore Online Shoppers’ Confidence Act – and it prohibits marketers from charging consumers for an online transaction unless the marketer has clearly disclosed all material terms of the deal and received the consumer’s express informed consent. Your e-commerce clients will want to know about the FTC’s first ROSCA case , filed recently in Nevada. According to the lawsuit, Health Formulas, LLC and a tangle of related California- and Nevada-based companies and individuals – consumers may know them as Simple Pure Nutrition – pitched a variety of products for weight loss, muscle building, virility, and skin care. The defendants advertised diet supplements like Pure Green Coffee Bean Plus and RKG Extreme as a shortcut to drop the pounds: “Burn fat without diet or exercise,” “Extreme weight loss!” “Shed pounds fast!” “Super concentrated double fat burning,” etc. Among the defendants’ more colorful business names: Weight Loss Dojo, Longhorn Marketing (sorry, Texas fans), Black Bull, and Unleash the Thunder. But unsubstantiated weight loss claims were just the start. The FTC says the defendants lured people in with bogus promises of a “free” trial or deceptive buy-one-get-one (BOGO) offers. Then they tricked consumers into giving their credit or debit card information with the false implication that consumers had to “just pay shipping.”   Digits in hand, the defendants really went to town, allegedly signing consumers up without their authorization for a negative option program that billed their accounts over and over again, to the monthly tune of between $60 and $210. The FTC says the defendants violated ROSCA by using a negative option feature without providing clear and conspicuous disclosures, getting the consumer’s express informed consent, and offering a simple mechanism for stopping the recurring charges. The FTC’s complaint also cites the defendants’ hard-to-find and hard-to-understand fine-print “terms and conditions,” which consumers could reach only by scrolling through the equivalent of two printed pages and clicking on an obscure hyperlink. Assuming they found it – and that’s a big if – the typical “terms and conditions” document was 10 pages long. On some websites, consumers had to scroll down the payment page to see further fine-print disclosures about the cost of the products. The first sentence reiterated what consumers generally understood (“You must pay a shipping and handling fee of $4.95 for us to send you a full 30 day supply of Garcinia Cambogia Extract”) but it wasn’t until the middle of the paragraph that the defendants mentioned that the trial period lasts only 14 days, that it began when the items were shipped (not delivered), and that consumers would be charged after that. Other websites didn’t even include that information. According to the lawsuit, consumers who attempted to take the defendants up on their money-back guarantee were met with a series of undisclosed roadblocks. In addition to the ROSCA counts, the FTC says the defendants’ practices violated the Electronic Fund Transfer Act by debiting consumers’ accounts on a recurring basis without their prior written authorization. What’s more, the complaint charges that the defendants continued to call people after being told to cut it out, in violation of the Telemarketing Sales Rule’s entity-specific Do Not Call provisions. The FTC says they also violated the TSR through a series of deceptive upsells. A federal judge has entered a temporary restraining order and the FTC is seeking to put a permanent stop to the defendants’ illegal practices. If your clients have ROSCA questions, the","id":3201052},{"id":3197414,"description":"FTC challenges Online Trading Academy’s money-making claims lfair February 12, 2020 | 4:35PM FTC challenges Online Trading Academy’s money-making claims By Lesley Fair Ads for health products often target Boomer Consumers, but those aren’t the only claims pitched to people looking toward retirement. An FTC action alleges a company called Online Trading Academy has taken in more than $370 million by gearing its deceptive representations to that demographic. In addition, the complaint alleges violations of the Consumer Review Fairness Act. According to the FTC, the California-based operation, related companies, and three individual defendants advertise a “patented strategy” that consumers can apply “to any asset class including stocks, options, futures and currencies” to rake in big money. They claim their “training programs” – with price tags as high as $50,000 – will teach consumers how to “invest like the pros on Wall Street.” ”No matter your experience and goals,” people were told the defendants’ “proven” strategy was “designed to make money in any market, whether it’s going up or down.” The complaint recounts the process the defendants use to attract consumers through TV and radio ads, online promotions, and direct mail. First comes an in-person “preview” seminar. Next, people pay $299 for a three-day “orientation.” That’s where the defendants urge attendees to sign up for seminars costing thousands more. The defendants assign each attendee an “Education Counselor” – a/k/a salesperson working on commission – who follows up by phone or email. According to the complaint, the defendants train their Education Counselors not to “look like, act like or sound like, a traditional salesperson,” but instead to take on a “role” and lead consumers through “The Pain Funnel,” Q&A designed to overcome consumer qualms. To get people to sign up for more seminars, the defendants routinely offer to finance all or part of the cost with loans at 18%, with the promise to forgive the interest if the consumer pays the total off within six months. The FTC says that in some instances, the defendants lead buyers to believe they’ll be able to repay the loan quickly with money they’ll make using that “patented strategy.” So how much does Online Trading Academy say consumers will earn? A central theme of their pitch is “You don’t have to work on Wall Street to make money like Wall Street.” Infomercials feature purchasers claiming that “in three hours I made $12,000” or “I made $32,000 in less than seven trading days.” In a YouTube video, a retiree says he made “$40,000 in a single trade.” In addition, a speaker at a live event claimed consumers “could potentially make $50,000 of annual income with an account size as low as $5,000” because Online Trading Academy has “a patent on the fact that you can time the markets,” which “gives us the ability to know when to get in and when to get out, long-term and short-term.” Other speakers – including some of the named defendants – paint a picture of lavish lifestyles filled with international travel, a “super luxury car” every year, and homes in areas where kids have “live-in nannies, cooks, gardeners.” One speaker said the money he made using Online Trading Academy’s strategy allows him to live in an enclave so exclusive that a neighbor, a renowned Olympic gold medalist, taught his daughter to swim. But the facts paint a different picture. The FTC alleges the defendants don’t systematically collect data sufficient to substantiate their earnings claims. But even the evidence they do have gave them good reason to know their representations are deceptive. For starters, according to the FTC, the defendants know that few consumers who","source":"FTC USA Business Blog Posts","pubDate":"Mon, 05 Oct 2026 08:07:09 +0200","url":"https://www.ftc.gov/business-guidance/blog/2020/02/ftc-challenges-online-trading-academys-money-making-claims","titre":"FTC challenges Online Trading Academy’s money-making claims"},{"pubDate":"Mon, 05 Oct 2026 08:07:08 +0200","url":"https://www.ftc.gov/business-guidance/blog/2020/04/new-ftc-warning-letters-cite-unsupported-coronavirus-related-health-earnings-claims","titre":"New FTC warning letters cite unsupported Coronavirus-related health and earnings claims","source":"FTC USA Business Blog Posts","id":3197413,"description":"New FTC warning letters cite unsupported Coronavirus-related health and earnings claims sgressin April 24, 2020 | 12:44PM New FTC warning letters cite unsupported Coronavirus-related health and earnings claims By Seena Gressin The FTC is not the pen pal you want if you operate a multi-level marketing company but aren’t closely monitoring your distributors. In its latest round of warning letters, the FTC warns ten MLM companies that they are responsible for the claims made by their participants. The letters direct the companies to report within 48 hours what actions they’ve taken to stop their distributors from claiming their products can treat or prevent Coronavirus disease, that MLM business opportunity participants are likely to earn substantial income, or both. The FTC says that the health and earnings claims are unsubstantiated and therefore violate truth-in-advertising laws. The products at issue are not scientifically proven to treat or prevent COVID-19, the disease that Coronavirus causes. The FTC previously has sent warning letters to companies about their Coronavirus-related health claims, but the new letters are the first to also target claims about potential business opportunity earnings. The letters come at a time when millions of people are out of work and facing financial challenges as a result of the pandemic. MLM companies rely on a network of independent distributors, sometimes called business opportunity participants, to buy and resell their products, often through direct person-to-person sales or online. MLMs typically offer participants a cut of the sales made by people the participant recruits to invest in the business opportunity. The new recruits then try to sell the products, and try to recruit more people to do the same. Most people who join MLMs make little or no money. According to the FTC, distributors of the MLM companies receiving the letters have posted promotional messages on Facebook, Instagram, and other social media sites. Health claims the FTC letters cite include: “STAY SAFE!! MAKE YOUR IMMUNE SYSTEM STRONG!!!” Standard coronavirus protection kit . #antiseptics and #immunity_support.” “HOW WILL YOU FIGHT OFF CORONA? USE NUTRABURST-CHAGA- .... #coronacure #coronaprevention ... #immunesupport #immunebooster ... #immunesystembooster” “Got the coronavirus heebeegeebees? Boost your immunity with this amazing deal!!!!” “... If interested to learn more or obtain oils or rollers Let me know A little extra protection can help #doterra #NursesCOVID19 #Dialysis #ImmunityBoosters #ImproveRespiratoryFunction” Earnings claims the FTC letters cite include: “...Living in quarantine and where 14 million people applied for unemployment just last week ... I’ll stick with the opportunity to change people’s lives ... turn a small investment into six figures .... #arbonne ... #quarantine #2020” “Need to make extra money? Find it difficult to pay your bills? Were you laid off/ #fired? Be your own Boss w/doTERRA essential oils. Msg me to achieve financial independence #laidoff #unemployed #cantpaymybills #cantpaymyrent #student #sales #sidehustle #makemoney #stayathomemom.” “[E]veryone’s getting stimulus checks right now... There is no better investment you could do... Take that money that you’re about to get back... figure out a way to make this happen tonight.” In the letters alleging unsubstantiated health claims, FTC staff reminds the companies that, under the FTC Act, claims that a product can prevent, treat, or cure a serious disease require the support of well-controlled human clinical studies. Because “no such study is currently known to exist” for the advertised products, the FTC says the companies “must immediately cease making all such claims.” In the letters alleging deceptive earnings claims, FTC staff reminds the companies that under the FTC Act, “claims about the potential to achieve a wealthy lifestyle, career-level income, or significant"},{"source":"FTC USA Business Blog Posts","id":3192605,"description":"Pink slip slip-up: First FTC cases challenging deceptive car title loans lfair January 30, 2015 | 9:12AM Pink slip slip-up: First FTC cases challenging deceptive car title loans By Lesley Fair She’s got a competition clutch with four on the floor And she purrs like a kitten ‘til the lake pipes roar. And if that ain’t enough to make you flip your lid, There's one more thing. I got the pink slip, Daddy. Back in the days of the Beach Boys’ “Little Deuce Coupe,” the only risk to a car title – the pink slip – was when hot rodders bet them on drag races.The FTC just announced its first two settlements with car title lenders that underscore additional risks to consumers’ pink slips and wallets. What should other companies consider if they want to avoid crossing the yellow line? The complaints challenge allegedly illegal practices by First American Title Lending of Georgia, which operates over 30 locations in that state, and Finance Select, which does business as Fast Cash Title Pawn at five Georgia locations and two in Alabama. What’s a car title loan? It’s typically a high-cost, short-term loan secured with a consumer’s free-and-clear car title. The lender holds on to the title as long as payments keep coming in. Of course, if consumers don’t pay, the lender takes the car. Car title loans tend to run between $1,000 and $10,000. They have high interest rates – the typical APR can be a whopping 300% – and short repayment periods, sometimes only 30 days. Each payment after that first month is called a “renewal.” Given that many consumers who take out car title loans are in financial distress, it’s not surprising that loans may extend over a much longer period. According to the FTC, the average is more like eight renewals. In addition to holding the consumer’s car title, the lender charges monthly fees, sometimes as much as 25% of the amount borrowed per month. That means that after eight renewals, a consumer taking out a $1,000 loan could wind up paying $2,000 in fees. The FTC says the companies’ ads lured consumers in with promises of “zero” interest, but then failed to clearly and conspicuously disclose hidden conditions attached to those eye-catching deals. For example, First American Title Lending touted “0% interest” in big headlines on websites, billboards, newspaper ads, yard signs, and elsewhere. What consumers weren’t clearly told was that they’d only get the 0% rate if they were new customers, if they paid by money order or certified funds, and if they paid in full within 30 days. If it took them longer to pay – the norm in the industry – consumers would have to pony up hefty finance charges calculated back to Day 1 of that \"0% interest\" loan, as well as the fees that started on Day 31. According to the complaint, Fast Cash Title Pawn similarly advertised “0% Title Loans,” sometimes adding “1st 30 days 0%,” without clearly and conspicuously disclosing the substantial strings that were attached – including that if the consumer didn’t pay in full within 30 days, they’d have to pay the finance charge for the first 30 days in addition to charges that kicked in on Day 31.  The lawsuits allege that the companies’ practices violate the FTC Act.  The FTC says First American Title Lending also violated the Truth in Lending Act and Reg Z. Under the proposed settlements, the companies will have to clearly disclose all the qualifying terms associated with getting a loan at the advertised rate and what the finance charge would be after an introductory period ends. The orders also prohibit misrepresentations about material terms of any loan agreement. The FTC’s message to members of the industry is that they’re not flying (driving?) under the radar. Truth-in-advertising standards apply to car title loans, too. What's more, companies will be held to well-established principles of","pubDate":"Fri, 02 Oct 2026 08:12:17 +0200","titre":"Pink slip slip-up: First FTC cases challenging deceptive car title loans","url":"https://www.ftc.gov/business-guidance/blog/2015/01/pink-slip-slip-first-ftc-cases-challenging-deceptive-car-title-loans"}]