Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC cracks down on illegal robocalls and texts offering “free” gifts, (Jul 29, 2013)
Organizations Mentioned:7657030 Canada, Inc. | Acquinity Interactive, LLC | Best Buy | Firebrand Group, S.L., LLC | Revenue Path E-Consulting Private, Limited | RevenuePath Limited | Walmart | Worldwide Commerce Associates, LLC
By Jody Coultas, J.D.
The FTC has filed a complaint against alleged members of an international network of scammers that sent millions of unwanted text messages to consumers, offering “free” gift cards and electronics in exchange for consumers’ personal information (FTC v. Acquinity Interactive, LLC, FTC File No. 122 3161, Case No. 1:13-cv-05380).
Consumers who clicked on the links in the text messages, which promised gift cards worth $1,000 to major retailers such as Best Buy, Walmart and Target, encountered a confusing and elaborate process that required them to provide sensitive personal information. The information was collected under the guise of being shipping information for the gifts and prizes. Once consumers entered their personal information, they were directed to another site and told they would have to participate in a number of “offers” to be eligible for their gift card. These offers included recurring subscriptions that required credit card information and payment for “shipping and handling.” In other cases, consumers were required to submit applications for credit that would be reflected in their credit reports and possibly affect their credit score. Consumers’ phone numbers were collected and signed up to receive unwanted automated telemarketing calls. Most, if not all, of the consumers never received the free gifts without spending money.
The FTC named nine companies involved in various aspects of the organization, building on a nationwide sweep conducted by the Commission in March to crack down on scammers who use these spam text messages to deceive consumers. The complaint alleges violations of the FTC Act and the Telemarketing Sales Rule, and seeks injunctions against the companies to prevent them continuing the allegedly deceptive practices.
Companies: Acquinity Interactive, LLC; 7657030 Canada, Inc.; Revenue Path E-Consulting Private, Limited; RevenuePath Limited; Worldwide Commerce Associates, LLC; Firebrand Group, S.L., LLC
News: ConsumerProtection FederalTradeCommissionNews