FTC v. Tatto

Citation
Federal Trade Comm'n v. Tatto, Inc. & Bullroarer, Inc., No. 2:13-cv-08912-DSF-FFM (C.D. Cal. Dec. 5, 2013), Complaint.

Complaint
The FTC alleged that the defendants ran websites that promised consumers offers such as free Justin Bieber tickets. When consumers attempted to claim these offers, they were asked for a mobile phone number. After following the instructions provided, consumers did not receive the Justin Bieber tickets, yet, the Commission has alleged, it is likely that consumers were instead signed up for the defendants' subscription plans.

The FTC alleged that this conduct constituted deceptive practices.

Settlement
The primary corporate defendants have agreed to a partially suspended judgment of $150,153,283.

Source

 * Mobile Cramming: A Federal Trade Commission Staff Report, at 9-10.