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Note:This website is where you can find advertising law information based on archived news briefs from past issues of Advertising Compliance Service. These archived advertising law-related news briefs were published in Advertising Compliance Service in January 2004.

 

 

 

 


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FTC CHARGES FIRM WITH MISLEADING AND THREATENING CONSUMERS

FTC filed a federal district court complaint against a company and its principals for allegedly violating the FTC Act and the Telemarketing Sales Rule (TSR). The alleged violations occurred during the phone sale of services purported to protect consumers' personal information -- including their social security number, credit card numbers, and bank account numbers -- from fraud and identity theft. According to FTC, consumers got little or nothing for their nearly $400 investment. FTC also alleged that the company made threatening follow-up calls to customers who decided to cancel their payments.

NOTE: The Commission issues or files a complaint when it has `reason to believe' that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the named parties have violated the law. The case will be decided by the court.

(Vector Direct Marketing, LLC (Vector), dba National Solicitation Guard and Anti-Solicitation Company, et al., FTC File No. 042-3019, Civ. No. CV04 0095 PHX SMM, February 2, 2004.)

FTC AUTHORIZES STAFF TO FILE AMENDED COMPLAINTS

FTC authorized the staff to file an amended complaint in the matter currently pending against Savvier, Inc., Savvier, LP, Greer Childers, Jack Ching Chung Chang, Jeffrey T. Tuller, and Keith Greer. FTC's complaint in this matter, announced on November 10, 2003, alleged the defendants falsely advertised that their product - the BodyFlex+ System - would cause consumers to quickly lose inches and fat. Through the amended complaint, FTC has:

(1) added BodyFlex, Inc. as a defendant;

(2) dismissed defendant Keith Greer;

(3) revised the complaint's common enterprise allegation; and

(4) included an allegation that certain claims are unsubstantiated, in addition to being false.

(Savvier, Inc., et al., FTC File No. 032-3212, Civ. No. CV-03-8159 FMC (JTLx), January 30, 2004.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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