Misleading marketing harms consumers in several ways: It can lead people to make purchasing decisions based on false or exaggerated claims, resulting in wasted money and disappointment with the product or service. Such deceptive practices can also create unrealistic expectations, damage trust in brands and advertising in general, and potentially even pose safety risks if important information is omitted or misrepresented. Over time, widespread misleading marketing can distort markets, making it harder for consumers to make informed choices and potentially driving out more honest competitors who refuse to engage in such tactics.
How Sitejabber Built a Business on Lies TL;DR The Corporation: GGL Projects, Inc., operating as Sitejabber, a major online review platform. The Scheme: Sitejabber was caught collecting and displaying customer reviews solicited at the moment of purchase. This means the…
TL;DR The Federal Trade Commission (FTC) charged a for-profit education corporation with systemic deception for lying to prospective students about their job prospects and potential earnings. The company used false and unsubstantiated claims, such as job placement rates “up to…
TL;DR The Federal Trade Commission sued American Future Systems, Inc. (a.k.a. Progressive Business Publications) and its debt collector International Credit Recovery, Inc. (ICR) on May 13, 2020 in federal court, Case No. 2:20-cv-02266, Eastern District of Pennsylvania. The scheme: Businesses,…
TL;DR The Facts: Fintech company Brigit marketed a $9.99/month subscription promising users living paycheck-to-paycheck access to “instant” cash advances of up to $250 to avoid overdraft fees. The Misconduct: The Federal Trade Commission alleges Brigit engaged in deceptive practices. Very…
FTC Complaint: Grand Canyon University’s For-Profit Scheme TL;DR The FTC is suing Grand Canyon University (GCU), its for-profit operator Grand Canyon Education (GCE), and CEO Brian E. Mueller for multiple deceptive practices. GCU allegedly lied about being a “nonprofit” to…
Table of Contents 1. Introduction This investigative article delves into the Federal Trade Commission (FTC) action against H&R Block Inc., HRB Digital LLC, and HRB Tax Group, Inc.—collectively referred to as H&R Block—alleging deceptive and unfair practices in the marketing…
FTC Shuts Down Rytr’s Review Generation Factory TL;DR The U.S. Federal Trade Commission issued a final Decision and Order against Rytr LLC, a Delaware corporation, under Docket No. C-4806. The company was investigated by the Bureau of Consumer Protection for…
A Wolf In App’s Clothing: How Dave, Inc. Baited The Financially Vulnerable TL;DR The U.S. Government is suing fintech company Dave, Inc. and its CEO, Jason Wilk, for widespread deceptive practices against consumers (Case No. 2:24-cv-09566-MRA-AGR). Dave’s advertising promised “up…
FTC Sues Nudge LLC for $400M Real Estate Training Scheme Corporate Misconduct Accountability Project Nudge, LLC · FTC Enforcement Action and State Consumer Protection Lawsuit FTC Sues Nudge LLC for $400M Real Estate Training Scheme Federal regulators allege Utah-based companies…
Investigative Report The “Love It Price” Was a Lie: How Lindsay Automotive Robbed Car Buyers Across the DC Metro EvilCorporations.com • Case No. 1:24-cv-02362 • FTC + Maryland AG vs. Lindsay Automotive Group • 31 min read TL;DR The Federal…