The FTC alleges that AT&T billed its customers for hundreds of millions of dollars in charges originated by other companies, usually in amounts of $9.99 per month.
Over one eleven-month period between 2012 and 2013, the scheme’s operators issued $28 million in payday “loans” to consumers, and, in return, extracted more than $46.5 million from their bank accounts, the FTC alleged.
Intermundo Media, which finds potential borrowers for mortgage refinancing lenders, will pay a $500,000 civil penalty to settle FTC charges that it deceived consumers with those ads, which falsely claimed they could refinance their mortgages for free.
John Matthew Dwyer III, the co-founder of HealthyLife Sciences, has agreed to settle FTC charges that he deceived consumers with promises that they would “Get High School Skinny” by taking Healthe Trim supplements.
The FTC alleges that YouTube videos created by the scam’s operators included a purported personal endorsement from the President, with an audio recording of him saying, “I approve this message.”
According to a complaint filed by the FTC, Your Yellow Book (YYB) faxed documents that resembled invoices with the well-known “walking fingers” image to consumers with whom they had no established relationship.
“The best practices recommended in our report build on the FTC’s active enforcement in this area and would give consumers needed protections to rein in the problems we have seen.”
The marketers claimed that exercising on the device for just three minutes a day would cause consumers to lose 10 pounds in two weeks. The checks, which total $9.3 million, must be cashed within 60 days after they are issued.
The FTC alleges that T-Mobile received anywhere from 35 to 40 percent of the total amount charged to consumers for content subscriptions that included flirting tips, horoscope information or celebrity gossip.
The FTC cases against The Tax Club and American Business Builders are part of a federal-state crackdown on scams that promise jobs and opportunities to “be your own boss”, the agency said. These scams often cost consumers thousands of dollars.