FTC Settlement with Internet Marketers Banned from Deceptive Practices
Last week, the Federal Trade Commission (“FTC”) announced a settlement with a group of internet marketers and their companies, including Richard Fowler, Ryan Fowler, Nathan Martinez, and entities operating as Tarr, Inc., for allegedly misleading consumers through deceptive advertising and billing practices.
The FTC's complaint outlined how the defendants marketed over 40 dietary supplements and skincare products with false health claims. They used fake news and magazine websites, falsely endorsed by celebrities like Dr. Oz and Jennifer Aniston, to promote products claiming benefits from rapid weight loss to wrinkle reduction, all without scientific backing. The complaint charges the defendants with violating the FTC Act, the Restore Online Shoppers’ Confidence Act (“ROSCA”), and the Electronic Funds Transfer Act (“EFTA”).
Consumers were lured into "risk-free" trials for products like "Miracle Garcinia Cambogia," only to find themselves unwittingly enrolled in costly auto-ship programs. These programs resulted in monthly charges of approximately $87, despite promises of free trials and satisfaction guarantees.
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