FTC v. Advertising Strategies, LLC

Citation
Federal Trade Commission v. Advertising Strategies, LLC, CV-16-3353-PHX-DJH (D. Ariz. Oct. 3, 2016) (full-text).

Factual Background
According to the FTC complaint, the defendants cold-call consumers and urge them to buy or invest in e-commerce websites, or websites that link to popular e-commerce websites, such as Amazon.com. The defendants falsely promise lavish returns and assure skeptical consumers that their investment is "risk free" or that it comes with a "100 percent money back guarantee."

The defendants have allegedly received payments from consumers ranging from several hundred dollars to more than $20,000. During the first 90 days after consumers authorize payment by credit card, the defendants respond to their calls, assuring them that their "account" is earning substantial money that will be paid at the end of the quarter. The defendants allegedly use stall tactics to dissuade skeptical consumers from disputing the charges (many credit cards include a 90-day limit on consumers' ability to dispute charges). After 90 days, the FTC alleges that the defendants typically cease all contact with their victims, who receive neither the promised returns nor refunds.

The complaint also alleges that the defendants use mail-forwarding services to disguise their location, and that they have changed their business name and mailing and physical addresses to avoid detection by law enforcement.

District Court Proceedings
At the Federal Trade Commission's request, the district court temporarily shut down the allegedly fraudulent telemarketing scheme that allegedly bilked more than $9 million from thousands of consumers across the nation, many of whom are elderly and live on a fixed income, including military veterans. Under the terms of the temporary restraining order granted by the court, the defendants have temporarily ceased operations and their assets are frozen for potential consumer redress.