[author: Jackie Odum]
On December 10, 2020, the Federal Trade Commission (Commission) announced that it reached a settlement with a payment processor and its former CEO for alleged violations of the Federal Trade Commission Act (FTCA).
The complaint alleges that the payment processor illegally processed more than $93 million in consumer credit card charges related to fraudulent schemes. Specifically, the complaint alleges that the payment processor failed to adequately screen and monitor certain of its merchant-clients. The Commission alleges that the payment processor and its former CEO knew or should have known that the company was assisting scammers in defrauding consumers.
The proposed stipulated order, if entered by the U.S. District Court for the District of Utah, will require the payment processor and former CEO to pay $1.5 million to the Commission for consumer relief. The order would prohibit the payment processor from assisting in fraudulent schemes and furthe
FTC RagingBull Enforcement and Deceptive Advertising Risks
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December 17, 2020
The Federal Trade Commission (FTC) said in a complaint before the body filed on Thursday that it believes that two CBD companies, Bionatrol Health and Isle Revive, as well as the companies’ owners and managers, violated the Federal Trade Commission Act by placing misleading information on its website and making it easy for consumers to spend more without noticing it through promoting upsells and not displaying amounts or price totals.
Both companies are located in Pleasant Grove, Utah. Bionatrol’s business registration reportedly expired in May 2020 and Isle Revive’s registration is currently delinquent. The companies were accused of having engaged in “unlawful acts and practices” which have affected commerce.