Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Consumers that bought phony insurance will receive refunds, (Sep 29, 2015)
Organizations Mentioned:Health Service Providers, Inc. | Independent Association of Businesses
By Jody Coultas, J.D.
Almost 7,000 checks totaling more than $1.1 million will be mailed by the FTC to consumers who lost money to a health insurance scam run by the Independent Association of Businesses (IAB) and Health Service Providers (HSP).
The FTC alleged that IAB and HSP violated the FTC Act and the FTC’s Telemarketing Sales Rule. Consumers believed they were purchasing comprehensive health insurance, but instead received membership in IAB, an obscure trade association that provided purported discounts on identity-theft protection, travel, and roadside assistance, and some healthcare related benefits that were subject to broad exclusions and limitations.
Under settlement orders issued in 2013 and 2014, IAB and HSP were banned from selling healthcare-related products.
Consumers who purchased IAB memberships from HSP’s telemarketers will receive checks in the amount of $167.63 from the FTC’s refund administrator, Gilardi & Co., LLC. Consumers who receive checks may contact Gilardi & Co. at 1-877-255-2476 or visit the FTC website to learn more about the refund program.
Companies: Independent Association of Businesses; Health Service Providers, Inc.
News: ConsumerProtection FederalTradeCommissionNews