On September 17, the FTC announced that the U.S. District Court for the Middle District of Florida approved the Commission’s order, effectively shutting down several companies (here, here and here) named in the FTC’s June complaint and required them to surrender over $40 million in assets. The FTC filed a complaint against the companies and individuals, the defendants, for allegedly operating unauthorized billing scams that defrauded consumers of over $200 million. The defendants were accused of employing deceptive practices to market CBD and keto-related products online, enrolling consumers in continuity programs without their consent, and charging them for products they did not order.

The FTC’s complaint detailed how the defendants misrepresented the cost of their products and failed to disclose automatic enrollment in subscription programs, leading to unauthorized charges on consumers’ credit and debit cards. The defendants also allegedly engaged in credit card laundering by using shell companies to obtain merchant accounts, conceal their identities, and avoid detection by consumers and law enforcement. The FTC charged the defendants with multiple violations, including deceptive acts under Section 5(a) of the FTC Act, failure to meet disclosure requirements under the Restore Online Shoppers’ Confidence Act (ROSCA), and unauthorized debiting under the EFTA. Additionally, specific counts included other charges such as misrepresenting that consumers would receive free products, charge consumers unfairly without consent, and engage in credit card laundering. The FTC’s complaint sought a permanent injunction to prevent future violations, monetary relief and other remedies such as an asset freeze and the appointment of a receiver — all approved by the district court.