Micah Wallen

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Last week, the Federal Trade Commission (FTC) and the Nevada Attorney General’s Office jointly filed suit against a group of tax debt relief companies operating under the “American Tax Service” brand, alleging the defendants misled struggling consumers through deceptive telemarketing tactics and false claims of government affiliation.

FTC and Nevada AG Take Action Against Tax Debt Relief Companies

The case, filed in Nevada federal court, highlights the continued focus of regulators on companies that prey on consumers’ fears of tax enforcement and misuse of government imagery or language to lend artificial legitimacy to their claims. The court has already granted the FTC’s request for a temporary restraining order and asset freeze, halting the defendants’ operations while the case proceeds. The case is the only one filed by the FTC since the government shutdown, and the FTC has sought to stay most litigation it had already commenced.Continue Reading FTC and Nevada AG Crack Down on Deceptive Tax Debt Relief Scams Mimicking the IRS

On September 30, the Federal Trade Commission (FTC) announced a $5.7 million settlement with Dun & Bradstreet, resolving allegations that the global provider of business-decisioning data and analytics, violated a prior 2022 FTC order by deceptively marketing its business credit services.

FTC Targets Deceptive Business Credit Marketing Practices

At the heart of the FTC’s allegations is the claim that Dun & Bradstreet misled small and mid-sized businesses about the value and necessity of its credit monitoring service. According to the agency, the company allegedly represented that purchasing its credit monitoring services was essential to prevent harm to customers’ business reputations and the credit reports published by Dun & Bradstreet, when in reality the risk was overstated.

The FTC further charged that Dun & Bradstreet failed to implement other required compliance measures imposed under an earlier consent order, including failing to notify customers of the order and to maintain certain records regarding compliance with the order.Continue Reading Dun & Bradstreet Faces $5.7M FTC Penalty for Violating Compliance Order and Misleading Small Businesses

On July 14, the Federal Trade Commission (FTC) filed a complaint in the U.S. District Court for the District of Arizona against a group of companies and individuals operating under the “Accelerated Debt” brand, alleging they engaged in a sweeping debt relief scam that misled vulnerable consumers, including seniors and veterans, through impersonation, pretexting, and deceptive marketing.

According to the FTC’s complaint, the defendants posed as consumers’ own banks, credit card issuers, and even government agencies, such as the Social Security Administration, to lure them into costly debt relief programs and gain access to their financial accounts. Through direct mail, online ads, and telemarketing calls (both outbound and inbound), the companies allegedly promised to reduce debts by up to 75%. But according to the FTC, these claims were exaggerated, and the program collected millions in illegal advance fees, some as high as $10,000, while leaving consumers in worse financial shape.

The court issued a temporary restraining order, halting the operation, and imposed an asset freeze to preserve funds for potential consumer redress as the case continues.Continue Reading FTC’s Ever-Expanding Remedies Toolkit: GLBA and Impersonation Rule Applied to Debt Relief Scheme

On June 24, the Federal Trade Commission (FTC) filed a complaint in the U.S. District Court for the District of Maryland against Mercury Marketing, LLC, and several affiliated entities and individuals alleging that the defendants impersonated substance use disorder (SUD) treatment clinics in search ads to deceptively route consumers trying to call those clinics to the defendants.

FTC Alleges Fake Rehab Ads Misled Vulnerable Treatment Seekers

According to the FTC, the defendants used search advertisements that impersonated legitimate SUD treatment facilities. These ads displayed the names of specific clinics and included phone numbers that, when called, routed consumers to the defendants’ call centers. Call center representatives allegedly misrepresented themselves as staff of the searched-for clinics or as employees of a centralized admissions office. The call centers then directed consumers to treatment centers owned by or affiliated with the defendants, such as Malibu Detox and Malibu Recovery Center, without disclosing their true affiliations.Continue Reading Lead Generation Scams in Healthcare: FTC Files Case Against Impersonator Ads

In a lawsuit that will likely be closely watched, Xlear, Inc.—a Utah-based manufacturer of xylitol-based hygiene products—has filed a federal lawsuit against the Federal Trade Commission (FTC) and its chairman, Andrew N. Ferguson. The suit, filed June 18 in the U.S. District Court for the District of Utah, seeks declaratory relief challenging the FTC’s long-standing requirement that advertisers have substantiation to prove the claims made in their advertising.

Xlear’s central argument is that the FTC’s “substantiation” standard, particularly as it applies to health-related claims, exceeds the agency’s statutory authority under Sections 5(a) and 12 of the FTC Act. The company contends that the Act prohibits only false or deceptive statements—not unsubstantiated ones—and that requiring marketers to possess substantiation effectively imposes a standard not found in the text of the statute. The complaint points to the FTC’s requirement that health-related claims be backed by randomized controlled trials (RCTs) as particularly onerous.Continue Reading Xlear v. FTC: Utah Company Files Challenge to Long-standing FTC Substantiation Requirements Post-Loper

In a development that underscores the Federal Trade Commission’s (FTC) growing scrutiny of the “merchant of record” model, the commission announced a $5 million settlement with UK-based Paddle.com Market Limited (Paddle), which processed payments for multiple businesses that allegedly sold deceptive tech support software subscriptions to U.S. consumers. The Paddle settlement, which follows a series of earlier actions involving merchants of record, suggests that the FTC has expanded its focus from the traditional payments industry to more novel models that support merchant aggregation and related services. The settlement also presents another novel use of the FTC’s authority under the Restore Online Shoppers’ Confidence Act (ROSCA), which has become a favored tool of the FTC in policing sales and recurring billing practices that the commission deems unfair or deceptive.

FTC Allegations and Merchant of Record Concerns

Over the past decade, global e-commerce has grown dramatically, with merchants selling goods and services to consumers around the world. Given the complexity of cross-border sales, many e-commerce merchants have partnered with payments companies that process sales for the merchant as the “merchant of record,” and which may provide other ecommerce services, such as sales fulfillment and tax remittance. Although the merchant of record model has grown in popularity, the concept is not expressly recognized by the card network rules, which generally require merchant aggregators to register as payment facilitators.Continue Reading FTC Targets “Merchant of Record” for Unlawful Payment Processing, TSR, and ROSCA Violations

In a decision underscoring the complexity and risks of making environmental marketing claims, the National Advertising Division (NAD) issued a decision in a challenge brought by the International Bottled Water Association (IBWA) against Boxed Water is Better® (Boxed Water). In the case, the NAD addressed a slew of claims touching on recyclability, renewability, life cycle impact comparisons, puffery, and more.

Recyclability and the Green Guides

NAD substantiated Boxed Water’s claims that its cartons are “recyclable” and “100% recyclable,” finding that the claims were consistent with the Federal Trade Commission’s (FTC) Green Guides, which permit such statements if a substantial majority (defined as 60% or more) of consumers have access to appropriate recycling facilities. Despite the multilayered structure of the cartons and industry challenges separating materials, NAD determined that the key threshold was access—not actual practice.Continue Reading Recyclable, Renewable, Regulated: NAD Pokes Holes in Boxed Water’s Green Pitch

Federal Trade Commission (FTC) chairman Andrew Ferguson has promised vigorous law enforcement under his leadership. Consistent with that promise, on June 10, 2025, the Commission announced a $1.9 million settlement with Florida-based Evoke Wellness and two of its corporate officers, resolving allegations that the company engaged in deceptive advertising and telemarketing practices targeting individuals seeking substance use disorder treatment.

At the heart of the FTC’s complaint filed in the waning days of the Biden administration is a classic bait-and-switch: Evoke allegedly purchased Google search ads that prominently displayed the names of competing treatment centers. When consumers clicked those ads—believing they were contacting the named facility—they were routed instead to Evoke’s internal call centers. According to the Commission, the representatives answering those calls were trained to reinforce the deception, often falsely stating that they were calling from or affiliated with the facility the consumer had originally searched for.

The FTC’s complaint alleged violations of both the FTC Act and the Opioid Addiction Recovery Fraud Prevention Act of 2018 (OARFPA). This settlement signals OARFPA remains a tool the Ferguson-led FTC is prepared to use.Continue Reading Marketing in Sensitive Sectors: The FTC Prescribes a $1.9 Million Lesson to Evoke Wellness

On May 15, Federal Trade Commission (FTC) chairman Andrew Ferguson testified before the House Appropriations Committee in support of the FTC’s budget request. His testimony provides insight into the agency’s downsizing and its strategic enforcement priorities moving forward.

Ferguson reported that the FTC is implementing a 10% reduction in its workforce, bringing its headcount to approximately 1,100 employees—the lowest level in a decade. This decision follows the departure of 94 employees earlier in the year, which left the agency with 1,221 full-time staff. Ferguson testified that these measures are essential for aligning the agency’s resources with its current budget and emphasized a return to the FTC’s foundational mission: enforcing laws as written, rather than creating new regulations and policy.

Despite the reductions, Ferguson expressed confidence that the FTC will effectively fulfill its mission of protecting consumers and promoting competition. He highlighted several key consumer protection areas the FTC will prioritize:Continue Reading Cut to the Chase: FTC Trims Staff but Keeps Enforcement Focus

Last week, the Federal Trade Commission (FTC) published a set of Frequently Asked Questions (FAQ) aimed at helping businesses and consumers understand the agency’s Rule on Unfair or Deceptive Fees, which takes effect on May 12, 2025. The new guidance signals the FTC’s continued focus on ensuring price transparency in industries where hidden fees have become common—and increasingly controversial.

The rule, which the commission approved in a 4-1 vote in December 2024, is designed to curb misleading fee practices, particularly in the live-event ticketing and short-term lodging sectors. The rule is also part of a broader effort to implement President Donald Trump’s Executive Order on Combating Unfair Practices in the Live Entertainment Market.Continue Reading FTC Staff Issues Guidance Ahead of New Rule Targeting Deceptive Fees