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Drug Enforcement Agency

United States of America


The Ryan Haight Act Known as
Online Pharmacy Consumer Protection Act of 2008
Sec. 2. Requirement of a valid prescription for
controlled substances dispensed by means of the Internet.

SUMMARY: The Ryan Haight Online Pharmacy Consumer Protection Act,

Ritalin

Ritalin (Photo credit: Wikipedia)

which was enacted on October 15, 2008,amended the Controlled Substances Act and Controlled Substances Import and Export Act by adding several new provisions to prevent the illegal distribution and dispensing of controlled substances by means of the Internet.


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>>> Last update of whois database: Sat, 06 Apr 2013 17:30:41 UTC

INDEPENDENT ASSOCIATION OF BUSINESSES [IAB] Operators Banned by FTC

For Release: 02/20/2013

 

Telemarketers Allegedly Bilked Millions of Dollars from Consumers Seeking Health Insurance

 

Telemarketers who allegedly tricked consumers into buying purported health insurance are permanently banned from selling healthcare-related products under a

Seal of the United States Federal Trade Commis...

Seal of the United States Federal Trade Commission. (Photo credit: Wikipedia)

settlement with the Federal Trade Commission.  The case is part of the FTC’s ongoing efforts to crack down on fraudsters who prey on vulnerable consumers seeking health insurance, including the uninsured, the unemployed, and those with pre-existing medical conditions.

In September 2012, the FTC charged Roy D. Hamilton and his wife, Judy M. Hamilton, and their companies,

Health Service Providers, Inc. defendants, with fraudulently selling bogus health insurance for the Independent Association of Businesses (IAB).

The HSP defendants allegedly called consumers who had submitted their contact information to websites that claimed to offer quotes for traditional health insurance or equivalent coverage.  According to the FTC, after paying an initial fee ranging from $50 to several hundred dollars and a monthly fee ranging from $40 to $1,000, consumers eventually learned they had not purchased comprehensive health insurance, but were deceived into buying an IAB membership that supposedly provided discounts on services such as golf, travel, and some limited health related services and insured benefits.

In addition to the ban against selling healthcare-related products, the settlement order prohibits the HSP defendants from misrepresenting material facts about any goods or services, selling or otherwise benefiting from consumers’ personal information, and from violating the FTC’s Telemarketing Sales Rule, including calling consumers on the Do Not Call Registry.  The order also imposes an $11.8 million judgment that has been suspended following the HSP defendants’ surrender of assets to the FTC.

Litigation continues against the remaining defendants behind the allegedly fraudulent health insurance scheme:  IAB Marketing Associates LP, Independent Association of Businesses, HealthCorp International Inc., JW Marketing Designs LLC, International Marketing Agencies, LP, International Marketing Management LLC, Wood LLC, James C. Wood, James J. Wood, Michael J. Wood, and Gary D. Wood.  The FTC has also sought to amend its complaint against the remaining defendants in the case, adding two individuals as relief defendants who allegedly benefitted from the scheme but did not participate in it.

The Commission vote approving the consent order and authorizing the staff to file the amended complaint was 4-0-1, with Chairman Leibowitz not participating.  The FTC filed its motion to amend the complaint on February 13, 2013, and the consent order was entered by the U.S. District Court for the Southern District of Florida on February 19, 2013.

NOTE:  The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest.  The complaint is not a finding or ruling that the defendant has actually violated the law.  The consent order is for settlement purposes only and does not constitute an admission by the defendant that the law has been violated.  Consent orders have the force of law when approved and signed by the District Court judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call
1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics.  Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

MEDIA CONTACT:
Frank Dorman
Office of Public Affairs

202-326-2674
 
STAFF CONTACT:
Dotan Weinman
Bureau of Consumer Protection
202-326-3049

http://www.ftc.gov/os/caselist/1123185/index.shtm

 

 

FTC Settlement Bans Telemarketers from Selling Healthcare-Related Products

For Release: 02/20/2013

 

Telemarketers Allegedly Bilked Millions of Dollars from Consumers Seeking Health Insurance

 

Telemarketers who allegedly tricked consumers into buying purported health insurance are permanently banned from selling healthcare-related products under a

Seal of the United States Federal Trade Commis...

Seal of the United States Federal Trade Commission. (Photo credit: Wikipedia)

settlement with the Federal Trade Commission.  The case is part of the FTC’s ongoing efforts to crack down on fraudsters who prey on vulnerable consumers seeking health insurance, including the uninsured, the unemployed, and those with pre-existing medical conditions.

In September 2012, the FTC charged Roy D. Hamilton and his wife, Judy M. Hamilton, and their companies,

Health Service Providers, Inc. defendants, with fraudulently selling bogus health insurance for the Independent Association of Businesses (IAB).

The HSP defendants allegedly called consumers who had submitted their contact information to websites that claimed to offer quotes for traditional health insurance or equivalent coverage.  According to the FTC, after paying an initial fee ranging from $50 to several hundred dollars and a monthly fee ranging from $40 to $1,000, consumers eventually learned they had not purchased comprehensive health insurance, but were deceived into buying an IAB membership that supposedly provided discounts on services such as golf, travel, and some limited health related services and insured benefits.

In addition to the ban against selling healthcare-related products, the settlement order prohibits the HSP defendants from misrepresenting material facts about any goods or services, selling or otherwise benefiting from consumers’ personal information, and from violating the FTC’s Telemarketing Sales Rule, including calling consumers on the Do Not Call Registry.  The order also imposes an $11.8 million judgment that has been suspended following the HSP defendants’ surrender of assets to the FTC.

Litigation continues against the remaining defendants behind the allegedly fraudulent health insurance scheme:  IAB Marketing Associates LP, Independent Association of Businesses, HealthCorp International Inc., JW Marketing Designs LLC, International Marketing Agencies, LP, International Marketing Management LLC, Wood LLC, James C. Wood, James J. Wood, Michael J. Wood, and Gary D. Wood.  The FTC has also sought to amend its complaint against the remaining defendants in the case, adding two individuals as relief defendants who allegedly benefitted from the scheme but did not participate in it.

The Commission vote approving the consent order and authorizing the staff to file the amended complaint was 4-0-1, with Chairman Leibowitz not participating.  The FTC filed its motion to amend the complaint on February 13, 2013, and the consent order was entered by the U.S. District Court for the Southern District of Florida on February 19, 2013.

NOTE:  The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest.  The complaint is not a finding or ruling that the defendant has actually violated the law.  The consent order is for settlement purposes only and does not constitute an admission by the defendant that the law has been violated.  Consent orders have the force of law when approved and signed by the District Court judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call
1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics.  Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

MEDIA CONTACT:
Frank Dorman
Office of Public Affairs

202-326-2674
 
STAFF CONTACT:
Dotan Weinman
Bureau of Consumer Protection
202-326-3049

http://www.ftc.gov/os/caselist/1123185/index.shtm

 

 

FTC Settles Charges That Compete.com Deceived Consumers

For Release: 10/22/2012

Tracking Software Company Settles FTC Charges That it Deceived Consumers and Failed to Safeguard Sensitive Data it Collected

A web analytics company has agreed to settle Federal Trade Commission charges

Seal of the United States Federal Trade Commis...

Seal of the United States Federal Trade Commission. (Photo credit: Wikipedia)

that it violated federal law by using its web-tracking software that collected personal data without disclosing the extent of the information that it was collecting. The company, Compete Inc., also allegedly failed to honor promises it made to protect the personal data it collected.

Compete is a company that uses tracking software to collect data on the browsing behavior of millions of consumers, then uses the data to generate reports, which it sells to clients who want to improve their website traffic and sales.

The proposed settlement will require that Compete obtain consumers’ express consent before collecting any data from Compete software downloaded onto consumers’ computers, that the company delete or anonymize the use of the consumer data it already has collected, and that it provide directions to consumers for uninstalling its software.

According to the FTC, Compete got consumers to download its tracking software in several ways, including by urging them to join a “Consumer Input Panel” that was promoted using ads that pointed consumers to Compete’s website, http://www.consumerinput.com. Compete told consumers that by joining the “Panel” they could win rewards while sharing their opinions about products and services, the FTC alleged.  The company also allegedly promised that consumers who installed another type of its software– the Compete Toolbar (from compete.com)– could have “instant access” to data about the websites they visited.

Compete also licensed its web-tracking software to other companies, the FTC alleged.  Upromise, which licensed Compete’s web-tracking software, settled similar FTC charges earlier this year.

Once installed, the Compete tracking component operated in the background, automatically collecting information about consumers’ online activity.  It captured information consumers entered into websites, including consumers’ usernames, passwords, and search terms, and also some sensitive information such as credit card and financial account information, security codes and expiration dates, and Social Security Numbers, according to the FTC.

The FTC charged that several of Compete’s business practices were unfair or deceptive and violated the law.  For example, the company failed to disclose to consumers that it would collect detailed information such as information they provided in making purchases, not just “the web pages you visit.”

In addition, the FTC alleged that Compete made false and deceptive assurances to consumers that their personal information would be removed from the data it collected.  The company made statements such as:

  • “All data is stripped of personally identifiable information before it is transmitted to our servers;” and
  • “We take reasonable security measures to protect against unauthorized access to or unauthorized alteration, disclosure or destruction of personal information.”

Despite these assurances, the FTC charged that Compete failed to remove personal data before transmitting it; failed to provide reasonable and appropriate data security; transmitted sensitive information from secure websites in readable text; failed to design and implement reasonable safeguards to protect consumers’ data; and failed to use readily available measures to mitigate the risk to consumers’ data.

The proposed settlement order requires Compete and its clients to fully disclose the information they collect and get consumers’ express consent before they collect consumers’ data in the future.  In addition, the settlement bars misrepresentations about the company’s privacy and data security practices and requires that it implement a comprehensive information security program with independent third-party audits every  two years for 20 years.

The Commission vote to accept the consent agreement package containing the proposed consent order for public comment was 4-0-1, with Commissioner J. Thomas Rosch abstaining.  The FTC will publish a description of the consent agreement package in the Federal Register shortly.  The agreement will be subject to public comment for 30 days, beginning today and continuing through November 19, 2012, after which the Commission will decide whether to make the proposed consent order final.  Interested parties can submit written comments electronically or in paper form by following the instructions in the “Invitation To Comment” part of the “Supplementary Information” section https://ftcpublic.commentworks.com/ftc/competeincconsent. Comments in paper form should be mailed or delivered to:  Federal Trade Commission, Office of the Secretary, Room H-113 (Annex D), 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580.  The FTC is requesting that any comment filed in paper form near the end of the public comment period be sent by courier or overnight service, if possible, because U.S. postal mail in the Washington area and at the Commission is subject to delay due to heightened security precautions.

NOTE:  The Commission issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest.  The complaint is not a finding or ruling that the respondent has actually violated the law.  A consent agreement is for settlement purposes only and does not constitute an admission by the respondent that the law has been violated.  When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions.  Each violation of such an order may result in a civil penalty of up to $16,000.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call
1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics.  Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

MEDIA CONTACT:
Claudia Bourne Farrell
Office of Public Affairs
202-326-2181
 
STAFF CONTACT:
Ruth Yodaiken,
Bureau of Consumer Protection
202-326-2127Jamie Hine
Bureau of Consumer Protection
202-326-2188

http://www.ftc.gov/os/caselist/1023155/index.shtm

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Residential Relief Foundation, LLC

For Release: 10/04/2011

At FTC’s Request, Court Shuts Down Deceptive Mortgage and Debt Relief Operation One

Firm Charged $1,495 for Loan Modification Program, but Provided No Services

At the Federal Trade Commission’s request, a U.S. district court has shut down two related operations as a result of settlements with defendants who allegedly failed to
Seal of the United States Federal Trade Commis...
provide promised debt relief services and jeopardized their clients’ privacy by tossing their personal information into unsecured dumpsters. In addition, one of the operations allegedly charged consumers a $1,495 up-front fee based on phony promises that they would get mortgage relief assistance.

The settlements with

  1. Residential Relief Foundation, LLC
  2. Silver Lining Services, LLC
  3. Mitigation America, LLC

and their principal owners are part of the FTC’s ongoing crackdown on scams that target consumers in financial distress. The settlements ban the defendants from working in the mortgage assistance and debt relief business, prohibit them from the alleged privacy violations, and impose judgments totaling more than $11 million – the amount of consumer harm they caused.

In its November 2010 complaint, the FTC alleged the defendants behind Residential Relief Foundation violated federal law by falsely claiming their loan modification program could lead to the waiver of late mortgage payments, late fees, and legal fees; the conversion of adjustable mortgage rates to fixed rates as low as one percent; the reduction of consumers’ principal balance; and up to 40 percent lower mortgage payments.

According to the FTC, the Residential Relief defendants used a logo similar to the Great Seal of the United States to market their products. Claiming quick results and a high success rate, the defendants charged a $1,495 up-front fee, advised consumers to stop making mortgage payments, and falsely claimed that reports they created would enable homeowners get the promised results.

The defendants engaged in their conduct amid the publicity surrounding the availability of free mortgage loan assistance and modification programs, including the Home Affordable Modification Program (HAMP) implemented by the federal government under the Troubled Asset Relief Program (TARP). HAMP encourages loan servicers and investors to modify mortgages to reduce the monthly payments of homeowners who are at risk of default. There is no fee to homeowners to apply for a modification under HAMP.

The Residential Relief defendants allegedly also improperly disposed of consumers’ information in unsecured dumpsters in violation of their own privacy policies. Finally, the FTC charged that in marketing credit card debt relief services, the defendants falsely told people they could become debt-free in 12 to 36 months, could eliminate late fees and penalties, and could reduce their debts by up to 50 percent.

The first settlement bans Residential Relief Foundation, Silver Lining Services, and their owners, James Holderness, Bryan Melanson, Michael Valenti, and Jillian Melanson, from participating in both the mortgage assistance relief and debt relief industries. It imposes a judgment of more than $10.5 million, which is the total amount the defendants made through their deceptive conduct. This includes a joint judgment of $509,306 entered against the Mitigation America defendants, as discussed below. A court-appointed receiver will attempt to recover nearly $1 million that the corporate defendants still have from the scheme. The individual defendants will turn over their frozen assets, with the remainder of the judgment suspended due to their inability to pay.

The FTC also has settled related charges against Mitigation America, LLC and its principal, Dennis Strzegowski, who allegedly worked with Residential Relief Foundation as part of the scam by deceptively marketing debt relief services to consumers. They were charged with violating their privacy policy by discarding confidential consumer information into unsecured dumpsters. The settlement bans Mitigation America and Strzegowski from participating in the debt relief industry and includes a judgment of $509,306, the total amount they received from their fraudulent debt relief promotions. The court-appointed receiver will liquidate Mitigation America. Strzegowski is required to pay $5,000, with the rest suspended due to his inability to pay.

Both settlements also bar the defendants from making misrepresentations about any product or service, including claims about financial products or services, their government affiliation, and implementation of their data security measures. The orders also require the defendants to have competent and reliable evidence to back up key claims about their financial products or services and prohibit them from violating the FTC’s Telemarketing Sales Rule. Also, in settlements, the total judgment amounts will become due if the defendants are found to have misrepresented their financial condition.

The FTC appreciates the investigative assistance provided in this case by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP). SIGTARP investigates fraud, waste, and abuse related to HAMP and all other TARP-funded programs. Since this case was filed, the FTC has issued a rule prohibiting mortgage relief programs from charging up-front fees before providing their services.

Information for consumers on how to detect and avoid mortgage relief fraud can be found here.

The Commission vote approving the proposed settlement orders was 5-0. The first order was filed in the U.S. District Court for the District of Maryland, and resolves the FTC’s charges against Residential Relief Foundation, LLC; Silver Lining Services, LLC; James Holderness; Bryan Melanson; Michael Valenti; and Jilliam Melanson. The second order, also filed in the U.S. District Court for the District of Maryland, settles the FTC charges against defendants Mitigation America, LLC and Dennis Strzegowski. The court entered the orders on September 30, 2011.

NOTE: The consent orders are for settlement purposes only and do not constitute an admission by the defendants that the law has been violated. Consent orders have the force of law when approved and signed by the District Court judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics. Like the FTC on Facebook and follow us on Twitter..

MEDIA CONTACT:
Mitchell J. Katz
Office of Public Affairs

202-326-2161

(FTC File No. X110004; Civ. No. 1:10-cv-3124-JFM (D. Md.))
(Res Relief.final)