Protecting Older Consumers, 2022-2023

Federal Trade Commission

October 18, 2023

Protecting

Older

Consumers

2022–2023

A Report of the

Federal Trade Commission

Protecting

Older Consumers

2022–2023

A Report of the Federal Trade Commission

October 18, 2023

FEDERAL TRADE COMMISSION

Lina M. Khan, Chair

Rebecca Kelly Slaughter, Commissioner

Alvaro M. Bedoya, Commissioner

Contents

I. Introduction ...................................................................................................... 1

II. FTC Enforcement Activities Affecting Older Consumers ........................... 2

A. Enforcement Actions .....................................................................................................3

B. Case Resolutions............................................................................................................8

C. Other Enforcement Highlights.......................................................................................9

1. COVID-19 Demand Letters ..........................................................................................9

2. Consumer Monetary Relief .........................................................................................11

3. Criminal Liaison Unit .................................................................................................16

4. Referrals to the FBI’s Recovery Asset Team .............................................................17

D. FTC Efforts To Protect Older Americans Remain Handicapped After AMG .............18

E. Strategies to Provide Additional Tools Post-AMG to Enhance FTC Enforcement

Efforts .........................................................................................................................18

III. Outreach and Education Activities .............................................................. 20

A. Pass It On Education Campaign ..................................................................................20

1. Outreach to Older Adults ............................................................................................21

2. Pandemic Response ....................................................................................................24

IV. Developing Effective Strategies to Protect Older Consumers ................... 24

A. Research and Data Analysis ........................................................................................24

1. Consumer Sentinel Reports from Older Adults ..........................................................25

2. Hearing Directly from Older Adults About FTC Impersonators ................................40

B. Coordinated Efforts to Protect Older Consumers ........................................................41

C. Scams Against Older Adults Advisory Group ............................................................42

V. Conclusion ....................................................................................................... 45

FEDERAL TRADE COMMISSION FTC.GOV 1

I. Introduction

The Federal Trade Commission (“FTC” or “Commission”) serves as the government’s leading

consumer protection agency and is charged with protecting consumers from unfair and deceptive

acts and practices in the marketplace. One of the FTC’s top priorities is protecting older adults,

and it uses a variety of methods to do so.

First, the FTC files enforcement actions and returns

money to consumers when possible.

This year, the FTC has brought enforcement actions

regarding schemes involving deceptive sweepstakes, debt relief scams, alleged COVID-relief

supplements or addiction recovery services, fraudulent timeshare exit services, chargeback

mitigation, tech support services, and illegal robocalls. The FTC’s past enforcement efforts have

also resulted in relief of more than $285 million to consumers of all ages distributed in this last

fiscal year. In addition, the FTC held a hearing on a proposed rule prohibiting government and

business impersonation, which if finalized, will bolster the FTC’s ability to return money to

consumers in light of the impact of the Supreme Court’s ruling in AMG Capital Mgmt. v. FTC.

Second, the FTC engages in outreach and education activities to reach older adults throughout

the United States. The FTC’s continued innovative approach helps alert older adults to common

types of fraud and resources to protect themselves. As the population of older adults grows, the

1 This report refers to persons 60 and older when using the terms “older adults” or “older consumers” to be

consistent with the requirements in Section 2(1) of the Elder Abuse Prevention and Prosecution Act, which

references Section 2011 of the Social Security Act (42 U.S.C. § 1397j(5)) (defining “elder” as an individual age 60

or older).

This report focuses on the Bureau of Consumer Protection’s work to protect older adults. The FTC’s Bureau of

Competition also serves older adults through its work in various sectors of the economy, such as health care,

consumer products and services, technology, manufacturing, and energy. The primary drafters of this staff report are

Sophia Siddiqui and Patricia Hsue, Division of Marketing Practices; Emma Fletcher, Division of Consumer

Response and Operations; Bridget Small, Division of Consumer and Business Education; and Maria Del Monaco,

East Central Region. Additional acknowledgement goes to Kati Daffan, Division of Marketing Practices; Maria

Mayo, Patti Poss, Christopher Stone, Nicole Christ, and Vincent Law, Division of Consumer Response and

Operations; Jennifer Leach, Karen Hobbs, Kira Krown, Colleen Tressler, and Marlena Patterson, Division of

Consumer and Business Education; Devesh Raval, Bureau of Economics; Sarah Waldrop, Division of Enforcement;

Karen Mandel and Christine DeLorme, Division of Advertising Practices; and Summer Law Clerks Kristin Elnikar,

Molly Gillespie, and Choteau Kammel. This report reflects the work of staff throughout the Federal Trade

Commission’s Bureau of Consumer Protection and its Regional Offices, with much of the work stemming from the

FTC’s Every Community Initiative. Lois C. Greisman is the FTC’s Elder Justice Coordinator.

The FTC has wide-ranging law enforcement responsibilities under the Federal Trade Commission Act, 15 U.S.C. §

41 et seq. (“FTC Act”) and enforces a variety of other laws ranging from the Telemarketing and Consumer Fraud

and Abuse Prevention Act to the Fair Credit Reporting Act. In total, the Commission has enforcement or

administrative responsibilities under more than 80 laws. See https://www.ftc.gov/legal-library/browse/statutes.

AMG Capital Mgmt., LLC v. FTC, 593 U.S. ___; 141 S. Ct. 1341 (2021) (holding that Section 13(b) of the FTC

Act does not authorize federal courts to require defendants to refund monies to consumers or give up unjust gains).

The Commission encourages Congress to enact legislation that restores the FTC’s Section 13(b) authority to provide

redress to consumers, as set forth in Section II.D, supra.

FEDERAL TRADE COMMISSION FTC.GOV 2

FTC’s outreach mission to help consumers spot, avoid, and report scams becomes increasingly

important.

Finally, the FTC conducts research and collaborates with diverse partners across the country,

including AARP, industry, military servicemembers and veterans, and other older adult

advocates. The FTC utilizes the information and analysis it obtains from these efforts to make

strategic decisions on how to best tackle issues impacting older adults. For example, the FTC’s

analysis of fraud and other reports filed by consumers nationwide helps the agency understand

and respond to patterns and trends related to older adults, including the differences in how older

adults in different demographic populations may experience fraud.

The FTC submits this sixth annual report to the Committees on the Judiciary of the United States

Senate and the United States House of Representatives to fulfill the reporting requirements of

Section 101(c)(2) of the Elder Abuse Prevention and Prosecution Act of 2017. The report

describes the FTC’s recent comprehensive efforts to protect older consumers. The report also

includes, as required by law, a list in Appendix A of every administrative and federal district

court action filed in the last year that has impacted older adults.

II. FTC Enforcement Activities Affecting Older

Consumers

A key cornerstone of the FTC’s efforts to protect older consumers is aggressive law

enforcement. Nearly all FTC enforcement actions involve consumers of all ages. While the

actual ages of people affected in a given case are typically unknown, in the Commission’s view,

older adults are among those affected in almost every consumer protection case filed this past

fiscal year. Therefore, Appendix A to this report lists most new enforcement actions brought by

the FTC between October 1, 2022, and September 30, 2023. The cases listed in Appendix A

involve a wide range of matters, including allegations regarding sweepstakes, business

opportunity and money-making schemes, unsubstantiated product claims, timeshare exit

services, unlawful robocalls, debt relief recovery services, tech support scams, addiction

recovery treatments, false claims about COVID-19 treatment or prevention, and more.

This section highlights twelve enforcement actions filed within the last fiscal year where the

Commission noted a significant impact on older adults. It also describes other agency actions

that affected older consumers, including case resolutions, cease and desist demand letters,

consumer refunds, and subsequent criminal action by other agencies relating to FTC matters or

The law requires the FTC Chair to file a report listing the FTC’s enforcement actions “over the preceding fiscal

year in each case in which not less than one victim was an elder or that involved a financial scheme or scam that was

either targeted directly toward or largely affected elders.”

This list includes cases involving violations of children’s privacy laws. The perpetrators of such schemes may not

typically target older adults, but the cases are listed because they involve large and diverse groups of consumers.

The affected consumers may include an older parent or grandparent caring for children who go online and wish to

protect their privacy.

FEDERAL TRADE COMMISSION FTC.GOV 3

with assistance from the FTC. Finally, this section describes the Commission’s work on a

proposed rule prohibiting government and business impersonation, as part of its ongoing strategy

and efforts to provide better tools to enhance its law enforcement work.

A. Enforcement Actions

The Commission filed the following new enforcement actions in the last fiscal year that likely

had a significant impact on older adults:

In Publishers Clearing House, the FTC charged that the company used “dark patterns” to

mislead consumers, many of whom were older adults or lower-income, about how to enter the

company’s well-known sweepstakes drawings and made them believe that a purchase was

necessary to win or would increase their chances of winning.

The FTC also charged that the

company added surprise shipping and handling fees to the costs of products, misrepresented that

ordering was “risk free,” used deceptive emails as part of its marketing campaign, and

misrepresented its policies on selling users’ personal data to third parties prior to January

2019.

PCH agreed to settle the FTC’s charges that it violated the FTC Act and CAN-SPAM

Act, and in June 2023 a district court approved a stipulated order requiring the company to make

a number of key changes to its email and internet operations, including halting deceptive

marketing practices like manipulative phrasing on its website, and requiring it to turn over $18.5

million to the FTC to be used to refund consumers.

In Yodel Technologies, the DOJ, on behalf of the FTC, filed a complaint and proposed order

alleging that defendants bombarded consumers with over a billion calls, including hundreds of

millions of robocalls and calls to phone numbers on the National Do-Not-Call Registry, selling a

variety of products and services such as medical devices, Medicare supplements, and purported

assistance with Social Security benefits.

The complaint alleges that defendants used soundboard

technology in their calls and obtained consumers’ information from websites that allegedly failed

to obtain consumers’ informed consent to receive telemarketing calls. This case is part of a

coordinated crackdown on illegal telemarketing calls, “Operation Stop Scam Calls,” that the FTC

led in partnership with more than 100 federal and state law enforcement agencies that resulted in

over 180 actions targeting operations responsible for billions of calls to consumers.

Defendants

Press Release, FTC, FTC Takes Action Against Publishers Clearing House for Misleading Consumers About

Sweepstakes Entries (June 27, 2023), available at https://www.ftc.gov/news-events/news/press-releases/2023/06/ftc-

takes-action-against-publishers-clearing-house-misleading-consumers-about-sweepstakes-entries.

FTC v. Publishers Clearinghouse, LLC (PCH), No. 2:23-cv-04735 (E.D.N.Y. June 27, 2023), available at

https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3145-publishers-clearing-house-llc-pch-ftc-v;

https://www.ftc.gov/legal-library/browse/cases-proceedings/2123074-yodel-technologies.

United States v. Yodel Technologies, LLC, et al., No. 8:23-cv-1575 (M.D. Fla. Jul. 14, 2023), available at

https://www.ftc.gov/system/files/ftc_gov/pdf/001YodelComplaint.pdf.

Press Release, FTC, FTC, Law Enforcers Nationwide Announce Enforcement Sweep to Stem the Tide of Illegal

Telemarketing Calls to U.S. Consumers (Jul. 18, 2023), available at https://www.ftc.gov/news-events/news/press-

FEDERAL TRADE COMMISSION FTC.GOV 4

agreed to settle the complaint charges that they violated the Telemarketing Sales Rule, and in

August 2023 a district court approved a stipulated order banning the defendants from engaging in

telemarketing and ordering them to pay a $400,000 civil penalty.

In ACRO Services, the FTC settled charges against the individual operators of an alleged credit

card debt relief scheme that took millions of dollars from consumers—often older and financially

distressed individuals—by falsely claiming to eliminate or reduce their credit card debts.

Defendants allegedly told consumers that they would charge consumers’ credit cards an upfront

fee in the thousands of dollars (with some charges as high as $18,000) but that consumers would

not actually owe this fee because it would eventually be eliminated in the program. Once

consumers were enrolled, defendants encouraged them to cease paying their credit card bills and

communicating with their creditors.

In reality, according to the complaint, defendants neither

reduced nor eliminated consumers’ credit card debts, and many consumers ended up owing their

original debts plus thousands in additional fees and interest, being sued by their creditors, and

seeing their credit scores drop significantly. The court order permanently bans the operators of

this scheme from telemarketing and selling debt relief products or services, enjoins them from

deceiving consumers about any other product or service they sell, and requires them to surrender

certain property interests and assets to be used for possible refunds to consumers. The FTC is

currently pursuing a default judgment against the remaining company defendants.

In Square One Development Group Inc., the Department of Justice (DOJ), on behalf of the

FTC, and the Wisconsin Attorney General filed suit against Square One Development Group Inc.

and related companies alleging that they sold fraudulent timeshare exit services.

According to

the complaint, the defendants targeted older Americans through direct mail campaigns, luring

consumers to high-pressure sales presentations at local hotels and restaurants. During the

presentations, the defendants allegedly made bogus affiliation claims, deceived consumers about

their timeshare exit options, and stoked unfounded fears about how their heirs would be affected

if they did not act immediately.

The complaint further alleges that the defendants charged

exorbitant upfront fees, which they promised to return if they were unable to secure the

releases/2023/07/ftc-law-enforcers-nationwide-announce-enforcement-sweep-stem-tide-illegal-telemarketing-calls-

us.

Press Release, FTC, FTC Lawsuit Leads to Permanent Ban from Debt Relief, Telemarketing for Operators of

Debt Relief Scam (May 1, 2023), available at https://www.ftc.gov/news-events/news/press-releases/2023/05/ftc-

lawsuit-leads-permanent-ban-debt-relief-telemarketing-operators-debt-relief-scam.

FTC v. ACRO Services, LLC, et al., No. 3:22-cv-00895 (M.D. Tenn. Nov. 30, 2022), available at

https://www.ftc.gov/legal-library/browse/cases-proceedings/acro-services.

United States v. Square One Development Group Inc., et al., No. 4:22-cv-01243 (E.D. Mo. Nov. 21, 2022),

available at https://www.ftc.gov/legal-library/browse/cases-proceedings/2123065-square-one-development-group-

inc-et-al-us-state-wisconsin-v.

Press Release, FTC, FTC, Wisconsin Attorney General Take Action Against Timeshare Exit Scammers for

Cheating Consumers Out of $90 Million (Nov. 22, 2022), available at https://www.ftc.gov/news-events/news/press-

releases/2022/11/ftc-wisconsin-attorney-general-take-action-against-timeshare-exit-scammers-cheating-consumers-

out-90.

FEDERAL TRADE COMMISSION FTC.GOV 5

timeshare exits within the promised time. It states that the defendants seldom succeeded in

securing exits from the timeshares and failed to return nearly every requested refund, citing

numerous phony reasons as to why they did not deliver the promised service. Ultimately, the

defendants allegedly scammed consumers out of more than $90 million. The complaint seeks

civil penalties, other monetary relief, and a court order to prevent future violations.

In Global E-Trading, LLC, the FTC and the Office of the Attorney General of Florida filed a

complaint alleging that the defendants, who operate a chargeback mitigation business known as

“Chargebacks911,” have used misleading information to contest chargebacks on behalf of their

merchant clients.

Chargebacks occur when consumers dispute credit card charges with their

banks, such as when consumers believe they have been subject to fraud or unfair business

practices. The defendants assist merchants in disputing consumer chargebacks. According to the

FTC, the defendants submitted misleading chargeback evidence to consumers’ banks, making it

more likely that the chargebacks would be denied.

The defendants also allegedly helped their

clients wrongfully manipulate their chargeback rates to avoid fraud monitoring programs. The

FTC and Florida Attorney General seek an order stopping the defendants’ illegal activities, and

the Florida Attorney General seeks to secure monetary relief under Florida law, including civil

penalties for each violation that harmed an older consumer.

In Precision Patient Outcomes, Inc., the FTC alleged that the defendants made deceptive claims

that their dietary supplement, named COVID Resist/VIRUS Resist, could treat, prevent, or

mitigate COVID-19.

The supplement contained nothing more than vitamins, zinc, and a

flavonoid. According to the FTC, the defendants stated that research and studies supported their

claims, including statements such as “A dose of this formula a day keeps viruses away. . . and

their variants. Take COVID resist

daily or for pre-exposure prophylaxis (PrEP), post exposure

prophylaxis (PEP), or as a therapeutic.” The complaint alleges that the defendants lacked a

reasonable basis for their COVID-19 claims and misrepresented the research and studies.

The

FTC is seeking permanent injunctive relief, monetary relief, and a civil penalty judgment.

In XCast Labs, Inc., the DOJ, on behalf of the FTC, sued to stop a Voice over Internet Protocol

(VoIP) provider, XCast Labs, Inc., from allegedly funneling hundreds of millions of illegal

Press Release, FTC, FTC, Florida Attorney General Sue Chargebacks911 for Thwarting Consumers Who Were

Trying to Reverse Disputed Credit Card Charges (Apr. 12, 2023), available at https://www.ftc.gov/news-

events/news/press-releases/2023/04/ftc-florida-attorney-general-sue-chargebacks911-thwarting-consumers-who-

were-trying-reverse-disputed.

FTC v. Global E-Trading, LLC, et al., No. 8:23-cv-00795 (M.D. Fl. Apr. 12, 2023), available at

https://www.ftc.gov/legal-library/browse/cases-proceedings/2023009-chargebacks-911.

Press Release, FTC, FTC Acts to Stop Deceptive COVID-19 Advertising Claims by California’s Precision Patient

Outcomes, Inc. (Nov. 22, 2022), available at https://www.ftc.gov/news-events/news/press-releases/2022/11/ftc-acts-

stop-deceptive-covid-19-advertising-claims-californias-precision-patient-outcomes-inc-0.

FTC v. Precision Patient Outcomes, Inc., et al., No. 4:22-cv-7307 (N.D. Cal. Nov. 18, 2022), available at

https://www.ftc.gov/legal-library/browse/cases-proceedings/2123137-precision-patient-outcomes.

FEDERAL TRADE COMMISSION FTC.GOV 6

robocalls through its network, even after receiving multiple warnings.

The complaint alleges

that XCast Labs received dozens of “traceback” inquiries from US Telecom’s Industry

Traceback Group regarding suspected illegal calls that originated on XCast Labs’ network, as

well as inquiries from law enforcement agencies about transmission of suspected illegal traffic

on the XCast Labs network. The complaint also alleges that even after receiving these direct

warnings, XCast Labs transmitted illegal robocalls to consumers. In addition, the FTC

discovered that many of these suspect robocalls were part of organized campaigns designed to

generate telemarketing leads by, for example, impersonating federal officials from the Social

Security Administration.

Lead generators sell the information they gather to telemarketers, who

then use consumers’ information to pester them with even more unwanted, illegal calls. The

complaint seeks civil penalties, other monetary relief, and a court order to prevent future

violations.

The DOJ, on behalf of the FTC, filed three separate complaints and proposed orders against

current and former high-level distributors for doTERRA International, LLC, a multi-level

marketing company.

The defendants are former registered nurse Lauren Busch, pediatrician

Dr. Tina Wong, and nurse practitioner Eliza Johnson Bacot, all of whom allegedly used their

healthcare expertise to bolster their product recommendations. According to the complaints,

these distributors participated in a series of webinars during which they made baseless claims

that the company’s dietary supplements and essential oils could effectively treat, prevent, or cure

COVID-19.

The stipulated orders require each defendant to pay a $15,000 civil penalty, end

any COVID claims that are not FDA-approved, and stop making any other health-related claims

without scientific proof.

In Nexway, the DOJ, on behalf of the FTC, filed suit alleging that, since August 2016, a

multinational payment processing company, along with its CEO and chief strategy officer,

FTC v. XCast Labs, Inc., No. 2:21-mc-01026 (C.D. Cal. Feb. 14, 2023), available at https://www.ftc.gov/legal-

library/browse/cases-proceedings/xcast-labs-inc-ftc-v.

Press Release, FTC, FTC Sues to Stop VoIP Services Provider That Assisted and Facilitated Telemarketers In

Sending Hundreds of Millions of Illegal Robocalls to Consumers Nationwide (May 12, 2023), available at

https://www.ftc.gov/news-events/news/press-releases/2023/05/ftc-sues-stop-voip-service-provider-assisted-

facilitated-telemarketers-sending-hundreds-millions.

Business Blog, FTC, An Essential Truth About COVID Claims (Mar. 3, 2023), available at

https://www.ftc.gov/business-guidance/blog/2023/03/essential-truth-about-covid-claims.

Press Release, FTC, FTC Takes Action Against doTERRA Distributors for False COVID-19 Health Claims

(Mar. 3, 2023), available at https://www.ftc.gov/news-events/news/press-releases/2023/03/ftc-takes-action-against-

doterra-distributors-false-covid-19-health-claims.

United States v. Busch, No. 2:23-cv-00009 (D. Utah Mar. 1, 2023), available at https://www.ftc.gov/legal-

library/browse/cases-proceedings/doterra-busch; United States v. Wong, No. 2:23-cv-63-MRW (C.D. Cal. Jan. 10,

2023), available at https://www.ftc.gov/legal-library/browse/cases-proceedings/doterra-wong; United States v.

Bacot, No. 1:23-cv-00058-AT (N.D. Ga. Jan. 23, 2023), available at https://www.ftc.gov/legal-

library/browse/cases-proceedings/doterra-bacot.

FEDERAL TRADE COMMISSION FTC.GOV 7

assisted and facilitated illegal sales and laundered credit card charges.

The complaint alleges

that defendants worked with telemarketers who made misrepresentations to consumers about the

performance and security of their computers in connection with the sale of bogus technical

support services. It also alleges defendants violated the law either by assisting and facilitating

those illegal sales and laundering the credit card charges through their own merchant accounts,

or by engaging in the enterprise as the ultimate sellers liable for the transactions.

The

defendants in the case agreed to proposed court orders that prohibit them from any further

payment laundering and require them to closely monitor other high-risk clients for illegal

activity. In April 2023, the FTC and DOJ announced that the defendants agreed to a total

monetary judgment of $49.5 million, which will be partially suspended upon payment of

$650,000 in funds for consumer redress due, in part, to an inability to pay.

In AWAREmed, the DOJ, on behalf of the FTC, filed a complaint and a proposed order against a

medical clinic alleging it made unfounded claims about the success of its treatments.

The

complaint alleged that AWAREmed and its owner, Dr. Dalal Akoury, used deceptive

advertisements that promised a 98% improvement rate in treating almost any condition.

Specifically, defendants advertised on AWAREmed’s website that their cancer treatments would

either lessen or eliminate cancer in most patients, and that their treatment of chronic diseases,

including Alzheimer’s disease and Parkinson’s disease, was almost always successful.

Defendants’ ads also promised a fast and painless recovery from various addictions, including

everything from alcohol and opioids to food and gambling that the complaint alleged violated the

Opioid Addiction Recovery Fraud Prevention Act.

The Court accepted the proposed

settlement, which requires AWAREmed and Akoury to pay a $100,000 civil penalty and bars

them from making future claims about cures or treatments that are unsupported by scientific

evidence.

FTC v. Nexway, No. 1:23-cv-900 (D.D.C. Apr. 17, 2023), available at https://www.ftc.gov/legal-

library/browse/cases-proceedings/1923239-x230018-nexway-inc-matter.

Press Release, FTC, FTC Acts to Block Payment Processor’s Credit Card Laundering for Tech Support Scammers

(Apr. 17, 2023) available at https://www.ftc.gov/news-events/news/press-releases/2023/04/ftc-acts-block-payment-

processors-credit-card-laundering-tech-support-scammers.

Press Release, FTC, FTC Sues Medical Clinic and its Owner for False or Unsubstantiated Claims its Treatment

Could Cure Addiction and Other Diseases (Mar. 16, 2023), available at https://www.ftc.gov/news-

events/news/press-releases/2023/03/ftc-sues-medical-clinic-its-owner-false-or-unsubstantiated-claims-its-treatment-

could-cure-addiction.

Pub. L. No. 115-271, 132 Stat. 4082 (codified in relevant part at 15 U.S.C. § 45d); Consumer Alert, FTC, Before

You Believe Addiction or Cancer Claims, Read This (Mar. 16, 2023), available at

https://consumer.ftc.gov/consumer-alerts/2023/03/you-believe-addiction-or-cancer-claims-read.

United States v. Akoury, No. 2:23-cv-00026 (E.D. Tenn. Mar. 16, 2023), available at https://www.ftc.gov/legal-

library/browse/cases-proceedings/2123039-dalal-akoury-dba-awaremed-et-al-us-v.

FEDERAL TRADE COMMISSION FTC.GOV 8

B. Case Resolutions

The Commission reached resolution in three pending cases involving older adults in the last

fiscal year.

In Raging Bull.com, the FTC settled charges against Kyle Dennis, the last remaining defendant

in a case filed in December 2020 against Raging Bull.com and related companies. The FTC’s

complaint alleged the defendants fraudulently marketed investment-related services that they

claimed would enable consumers to make consistent profits and beat the market.

It also alleged

the defendants used inflated and false earnings claims to induce consumers into signing up for

costly and hard-to-cancel subscriptions and to pay for investment strategies. The FTC further

alleged that Raging Bull and its owners were “bilking consumers out of millions of dollars on a

monthly basis” and that “a number of these consumers [were] older adults, retirees, and/or

immigrants.” In September 2023, defendant Kyle Dennis, a supposed stock trading “guru” for

RagingBull.com, who was charged by the FTC with pitching bogus stock tips that cost

consumers more than $40 million, agreed to settle the FTC’s charges. Under the final order,

Dennis is permanently prohibited from making any representations about potential earnings

without having written evidence that those claims are typical for consumers, and from making

any false or misleading marketing claims in general.

In ZyCal Bioceuticals Healthcare Company, Inc., the FTC settled charges that a company and

its president deceptively claimed their products could grow bone and cartilage and relieve joint

pain, including in persons with osteoporosis and osteoarthritis. In its complaint filed in early

2020, the FTC alleged these claims were not substantiated by competent and reliable scientific

evidence, and that their claims of scientific proof were false.

The settlement bars the

defendants from making claims about bone and cartilage growth, joint pain, and other health-

related claims unless they are substantiated by competent and reliable scientific evidence, and

prohibits them from misrepresenting the results of any tests, studies, and research.

The

defendants also must provide notice of the settlement to numerous purchasers of the products.

FTC v. Raging Bull.com, et al., No. 1:20-cv-3538 (D. Md. Dec. 7, 2020), available at https://www.ftc.gov/legal-

library/browse/cases-proceedings/2023073-x210014-ragingbullcom.

Press Release, FTC, RagingBull.com Stock Trading “Guru” Kyle Dennis Faces Permanent Injunction as Result of

FTC Action (Sept. 8, 2023), available at https://www.ftc.gov/news-events/news/press-

releases/2023/09/ragingbullcom-stock-trading-guru-kyle-dennis-faces-permanent-injunction-result-ftc-action.

FTC v. ZyCal Bioceuticals Healthcare Company, Inc., et al., No. 4:20-cv-10249-TSH (D. Mass. Feb. 10, 2020),

available at https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3133-zycal-bioceuticals-healthcare-

company-inc.

Press Release, FTC, FTC Order to Bar ZyCal Bioceuticals from Deceptive Health Marketing (Feb. 6, 2023),

available at https://www.ftc.gov/news-events/news/press-releases/2023/02/ftc-order-bar-zycal-bioceuticals-

deceptive-health-marketing.

FEDERAL TRADE COMMISSION FTC.GOV 9

In Romero, the FTC obtained summary judgment in its favor in a case filed in June 2021 against

Frank Romero, doing business as Trend Deploy.

The complaint stated that Romero acted on

consumers’ fears during the COVID-19 pandemic and deceptively advertised quick delivery of

N95 masks and other protective devices.

The FTC further stated that Romero rarely if ever

shipped the devices his websites offered for sale, failed to offer refunds for consumers’

purchases required by the FTC’s Mail Order Rule, and failed to notify customers of shipping

delays. The court order permanently enjoins Romero from selling or offering for sale any

protective goods or services, imposes a civil penalty, and enters a monetary judgment.

C. Other Enforcement Highlights

Other FTC enforcement highlights include the issuance of cease and desist demand letters, the

provision of consumer redress to consumers in cases previously brought by the FTC, and

criminal actions by other agencies that relate to prior FTC matters or where the FTC provided

assistance.

1. COVID-19 Demand Letters

COVID-19 has had a particularly devastating impact on the health and finances of older adults.

Throughout the pandemic, the FTC has taken action to stop many false and unsubstantiated

claims about COVID-19 treatment or prevention that exploit consumers’ fear of the disease and

its effects. In some circumstances, to swiftly address troubling claims related to COVID-19, the

FTC has sent cease and desist demand letters to companies and individuals. These letters warn

recipients that their conduct is unlawful, and that they can face serious legal consequences, such

as a federal lawsuit and civil penalties, if they do not immediately cease and desist from

engaging in such conduct.

During the last fiscal year, the FTC sent five cease and desist demand letters to companies that

allegedly violated the law by making false or unsupported claims about their products’ ability to

prevent, treat, or cure coronavirus disease. All of these letters were sent jointly with the FDA.

The unsubstantiated claims included references to clinical trials or studies touting the products’

effectiveness against COVID-19, as described below.

• In October 2022, the FTC sent a cease and desist demand letter to Lakpura LLC

challenging its claims that various ayurvedic and other products could prevent or treat

COVID-19. The company claimed on its website that one of its products was

Press Release, FTC, At FTC’s Request, Florida District Court Permanently Bars Deceptive COVID-19 PPE

Marketer from Selling Any Protective Goods or Services to Consumers (June 5, 2023), available at

https://www.ftc.gov/news-events/news/press-releases/2023/06/florida-district-court-permanently-bars-covid-19-ppe-

marketer-from-selling-goods-services.

FTC v. Romero, No. 5:21-cv-00343 (M.D. Fla. June 30, 2021), available at https://www.ftc.gov/legal-

library/browse/cases-proceedings/2023128-trend-deploy.

Information about the letters sent by the FTC can be found at https://www.ftc.gov/news-

events/features/coronavirus/enforcement/warning-letters.

FEDERAL TRADE COMMISSION FTC.GOV 10

“[A]pproved by the ayurvedic Department of Health, an immune-enhancing drink for the

COVID-19 virus based on ancient indigenous prescription and treatment,” and

encouraged consumers to purchase Ceylon black teas by stating that: “While still in its

preliminary findings, it has been noted that according to the latest research, the presence

of theaflavin, a polyphenolic compound in black tea is said to have a medicinal value;

thus acting as an inhibitor against several viruses . . . even SARS-related viruses like

COVID-19.”

• In November 2022, the FTC sent a cease and desist demand letter to Alternative Health

Distribution LLC (d/b/a CannaAid) challenging its promotion of cannabidiol (CBD)

products to treat and prevent COVID-19. The company made claims on its website such

as:

“HOW DOES CBD HELP TO FIGHT AGAINST COVID-19? . . . Recent analyses from

numerous preliminary in vitro and animal studies have shown that cannabinoids in hemp,

specifically CBD, can significantly reduce COVID-19’s ability to infect new cells –

limiting inflammation in the lungs and possibly improving a patients’ quality of life

during severe COVID-19 infection.”

• In January 2023, the FTC sent a cease and desist letter to PharmaCanna challenging its

advertising of cannabinoid products to treat and prevent COVID-19. The company made

claims on its website and social media including: “CBDefense 2000 - Virus Protective

Formula . . . This revolutionary virus fighting product contains the two cannabinoids,

CBDa & CBGa, that has been shown through a published study to keep covid from

infecting human cells,” and “Our CBDefense 2000, anti-covid formula, is Now

Available.”

• In January 2023, the FTC sent a cease and desist letter to PureCraft LLC challenging

claims that its CBD products could treat and prevent COVID-19. The company made the

claims on its website including: “Early results show that therapeutic doses of CBD do

have a protective effect against COVID,” and “According to a March 2022 article in

Frontiers in Immunology, CBD has been shown to decrease the severity of COVID. It’s

primarily doing this by counteracting the body’s inflammatory response to the SARS-

CoV-2 virus . . . .”

• In January 2023, the FTC sent a cease and desist letter to Medical Mikes, Inc. challenging

its promotion of CBD products to treat and prevent COVID-19. The company made

claims on its website that included: “widely circulated research indicated that highly

potent oral CBD inhibits Covid infection in human lung cells and mice,” and “Study

investigators found that, of hemp’s hundreds of cannabinoids, CBDa and CBGa exhibited

the most powerful ability to inhibit the Covid protein from seizing human cells. Even

more profound, these minor cannabinoids reduced viral infection loads (still, in a petri

dish) by an astounding 50%.”

FEDERAL TRADE COMMISSION FTC.GOV 11

2. Consumer Monetary Relief

In the last fiscal year, FTC enforcement actions have resulted in relief of more than $285 million

to consumers of all ages.

Although the FTC’s ability to seek monetary relief for harmed

consumers is now substantially limited following the Supreme Court’s decision in AMG Capital

Management,

the FTC continues to deliver refunds to consumers when possible. These

payments provide people some recompense for the losses that occurred due to illegal conduct.

In September 2023, the FTC sent a second round of payments in Lifewatch Inc. totaling more

than $1.04 million to 27,809 people, following a previous round of checks sent in December

2021 that resulted in $669,195 in refunds to consumers. The FTC and the Florida Attorney

General alleged that Lifewatch Inc., its officers and related entities bombarded consumers with at

least a billion unsolicited robocalls pitching supposedly free medical alert systems, and claimed

that the systems were endorsed or recommended by reputable organizations like the American

Heart Association when they were not. The company’s telemarketers often told consumers that

they could receive the medical alert system “at no cost whatsoever,” but consumers eventually

learned that they were responsible for monthly monitoring fees, and it was difficult to cancel

without paying a penalty. Defendants are permanently banned from telemarketing and prohibited

from misrepresenting the terms associated with the sale of any product or service.

In September 2023, the Claims Administrator in Western Union sent approximately $40 million

to approximately 25,000 consumers, bringing the total amount returned to consumers to over

$404 million. The FTC’s settlement was filed in conjunction with a settlement involving the

DOJ, the U.S. Postal Inspection Service, and the U.S. Attorneys Offices for the Middle District

of Pennsylvania, the Eastern District of Pennsylvania, the Central District of California and the

Southern District of Florida, where Western Union agreed to pay $586 million and admitted to

aiding and abetting wire fraud. The FTC alleged that fraudsters around the world used Western

Union’s money transfer system to perpetrate fraud, such as telemarketing schemes, online scams,

lottery or prize scams, grandparent scams, and romance scams, even though the company had

long been aware of these illicit transactions, and that some Western Union agents were complicit

in the fraud. The FTC complaint alleged that Western Union failed to put in place effective anti-

fraud policies and procedures and failed to act promptly against problem agents. Western Union

also agreed to implement and maintain a comprehensive anti-fraud program with training for its

agents and their front-line associates, monitoring to detect and prevent fraud-induced money

transfers, due diligence on all new and renewing company agents and suspension or termination

of noncompliant agents.

In February 2023, the Claims Administrator in MoneyGram International sent checks totaling

more than $115 million to 38,889 people who used MoneyGram to send money to scammers.

The FTC settled charges in November 2018 of allegations that the company failed to take steps

required under a 2009 FTC order to protect consumers from fraud through its money transfer

The FTC provides updated statistics about where refunds were sent, the dollar amounts refunded, and the number

of people who benefited from FTC refund programs at www.ftc.gov/refunds.

AMG Capital Mgmt., 141 S. Ct. at 1341. See also discussion in Section II(D) below.

FEDERAL TRADE COMMISSION FTC.GOV 12

system. In its 2018 filing addressing violations of the 2009 order, the FTC alleged that

MoneyGram failed to implement the comprehensive fraud prevention program mandated by the

2009 order, which required the company, among other things, to promptly train, investigate,

restrict, suspend, and terminate high-fraud agents. The 2009 order also required MoneyGram to

conduct timely fraud investigations of any agent location that received two or more fraud

complaints within 30 days, had fraud complaints totaling 5 percent or more of the location’s total

monthly received transactions, or displayed any unusual or suspicious money transfer activity.

MoneyGram also was required to terminate locations that may be complicit in fraud-induced

money transfers. The original FTC case described several scams perpetrated through the

MoneyGram payment system including lottery or prize scams that often target older adults.

MoneyGram agreed to a $125 million payment as part of a global settlement, which resolved

allegations that MoneyGram also violated a separate 2012 deferred prosecution agreement with

the Department of Justice.

In March 2023, the FTC began sending payments totaling nearly $2.4 million to consumers who

paid subscription fees to the stock trading website Ragingbull.com.

The FTC’s complaint

against Raging Bull and its owners, filed in December 2020, alleged that Raging Bull used

inflated and false earnings claims to induce consumers into signing up for costly and hard-to-

cancel subscriptions and paying for investment strategies.

The FTC further alleged that Raging

Bull and its owners were “bilking consumers out of millions of dollars on a monthly basis” and

that “a number of these consumers [were] older adults, retirees, and/or immigrants.”

Two months later, the FTC announced that it was sending payments totaling $577,000 to

consumers who had paid money to GDP Network, a Florida telemarketing company, for

allegedly selling fraudulent debt relief services.

According to the complaint filed in July 2020,

the FTC and the State of Florida alleged that GDP Network and its owners falsely claimed

affiliations with consumers’ credit card companies and charged consumers upfront fees ranging

from $995 to $3,995 to reduce their credit card debts. GDP Network targeted older adults and

financially distressed individuals and obtained sensitive information, such as their passwords,

social security numbers, and financial information. If consumers sought refunds for GDP

Network’s supposed debt relief services, the company issued refunds “only when consumers

Press Release, FTC, More than $115 Million in Refunds Sent to Consumers as a Result of FTC, DOJ Charges

That MoneyGram Failed to Crack Down on Scams (Feb. 10, 2023), available at https://www.ftc.gov/news-

events/news/press-releases/2023/02/more-115-million-refunds-sent-consumers-result-ftc-doj-charges-moneygram-

failed-crack-down-scams.

Press Release, FTC, FTC Sends Nearly $2.4 Million to Raging Bull Customers After the Company Agrees to Settle

Charges of Bogus Earnings Claims (March 6, 2023), available at https://www.ftc.gov/news-events/news/press-

releases/2023/03/ftc-sends-nearly-24-million-raging-bull-customers-after-company-agrees-settle-charges-bogus-

earnings.

FTC v. Ragingbull.com et al., No. 1:20-cv-3538 (D. Md. filed Dec. 14, 2020), available at

https://www.ftc.gov/legal-library/browse/cases-proceedings/2023073-ragingbullcom.

Press Release, FTC, FTC Sends More Than $557,000 to Consumers Harmed by Credit Card Interest Rate

Reduction Scam (May 22, 2023), available at https://www.ftc.gov/news-events/news/press-releases/2023/05/ftc-

sends-more-557000-consumers-harmed-credit-card-interest-rate-reduction-scam.

FEDERAL TRADE COMMISSION FTC.GOV 13

threaten[ed] to contact the Better Business Bureau or a state or federal law enforcement

agency.”

In 8 Figure Dream Lifestyle LLC, the FTC alleged that the defendants consistently made false

or unsubstantiated claims about how much consumers could earn through their programs.

They

often said, for example, that a typical person with no prior skills could make $5,000 to $10,000

in 10 to 14 days. While the defendants marketed their scheme broadly, they also directly targeted

older consumers. Their marketing to retirees said, “Make sure those golden years are actually

‘Golden’!!” People who bought the program spent up to $22,000, and rarely earned substantial

income. In fact, a majority lost money up to their entire investment, and often incurred

significant loans and credit card debt.

Defendants agreed to settle with the FTC and

surrendered funds to the FTC, which the FTC used to pay back consumers.

In October 2021, the FTC sent payments that resulted in $740,000 in refunds. In February 2023,

the FTC sent a second round of payments totaling more than $390,000 to 1,542 people who

accepted their first payment and had paid the defendants more than $2,000.

In Triangle Media Corp., the FTC alleged the defendants sold anti-aging and other products,

including a cognitive enhancement supplement and an anti-aging cream, using deceptively

advertised free trial offers. Consumers who ordered the free trials were charged for the trial

shipment, and were also enrolled in a negative-option continuity plan without their consent,

under which they receive an additional shipment each month and are charged full price for each

shipment.

The FTC’s complaint alleges such practices violate the FTC Act, as well as the

Restore Online Shoppers’ Confidence Act, and the Electronic Fund Transfer Act and its

implementing Regulation. Defendants agreed to settle the matter. In June 2020, the FTC sent

checks that resulted in $7.3 million in refunds to consumers. The FTC sent a second round of

checks in February 2023 totaling $1.3 million.

FTC v. GDP Network, et al., No. 6:20-cv-1192-78DCI (M.D. Fla. July 16, 2020), available at

https://www.ftc.gov/legal-library/browse/cases-proceedings/192-3137-gdp-network-llc-yf-solution.

FTC v. 8 Figure Dream Lifestyle, LLC, No. 8:19-cv-01165 (C.D. Cal. Oct. 4, 2021), available at

https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3117-8-figure-dream-lifestyle-llc.

Press Release, FTC, FTC, Law Enforcement Partners Announce New Crackdown on Illegal Robocalls (June 25,

2019), available at https://www.ftc.gov/news-events/news/press-releases/2019/06/ftc-law-enforcement-partners-

announce-new-crackdown-illegal-robocalls.

FTC v. Triangle Media Corp., No., 18-cv-1388 (S.D. Cal. June 22, 2020), available at https://www.ftc.gov/legal-

library/browse/cases-proceedings/172-3108-triangle-media-corporation.

Press Release, FTC, Triangle Media Refunds: FTC Returns Money to People Who Were Charged For “Risk-

Free” Trial Products (Feb. 2023), available at https://www.ftc.gov/enforcement/refunds/triangle-media-refunds.

FEDERAL TRADE COMMISSION FTC.GOV 14

In Elite IT Partners, Inc., the FTC alleged that the defendants operated a technical support

scheme using internet ads targeting consumers looking for email password recovery help.

According to the FTC’s complaint, the defendants’ representatives falsely told consumers that

their computer problems most likely stemmed from a virus or infection. The telemarketers ran

bogus “diagnostic” tests and used scare tactics and misrepresentations to sell additional service

plans. The vast majority of consumers that the defendants contacted were older. At the FTC’s

request, the federal court temporarily shut down the defendants’ scheme and froze their assets.

The defendants agreed to settle this matter. The case was brought as part of a coordinated effort

with DOJ and other federal and state agencies to take down technical support scams. The FTC

has returned just over $218,000 to consumers to date.

In Mile High Madison Group, Inc., the FTC alleged the marketers of three supplements called

Neurocet, Regenify, and Resetigen-D deceptively promoted their products to older Americans

through direct mail and online using false claims that their products could stop pain and treat

age-related ailments.

The defendants claimed their products were anti-aging cure-alls that

could repair cells and were clinically proven to treat multiple conditions. The FTC alleged the

defendants also deceptively advertised through fake doctor endorsements and consumer

testimonials. The defendants agreed to a settlement order barring them from making any claims

about the health benefits of their products unless they are true and supported by scientific

evidence. The order also imposed a judgment of more than $38.1 million, which is partially

suspended due to an inability to pay after the defendants paid $1.3 million.

In October 2021, the FTC sent the first set of payments to people who paid $120 or more for

supplements, which resulted in more than $660,000 in refunds. In December 2022, the FTC sent

checks totaling just over $368,000 to people who paid between $110 and $119.99 for the

supplements.

In Seed Consulting, the defendants allegedly partnered with companies, including the defendants

in two other FTC actions, Nudge and MOBE, to obtain “funding” for people to purchase pricey

training or coaching programs.

The FTC charged that the defendants in those two actions

deceived people, including older adults and retirees, through a variety of misrepresentations

about their wealth-creation programs. In Seed, the FTC alleged that the defendants engaged in

“credit card stacking,” which is the practice of charging people thousands of dollars to apply for

FTC v. Elite IT Partners, Inc., No. 2:19-cv-00125 (D. Utah Dec. 10, 2019), available at

https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3114-elite-it-partners-inc.

Press Release, FTC, Elite IT Refunds: FTC Sends Checks to People Who Lost Money to a Tech Support Scheme

(Jan. 2023), available at https://www.ftc.gov/enforcement/refunds/elite-it-refunds.

Press Release, FTC, FTC Sends Refunds to Consumers Who Bought Deceptively Marketed Supplements to Treat

Pain and Age-Related Health Conditions (Oct. 20, 2021), available at https://www.ftc.gov/news-events/news/press-

releases/2021/10/ftc-sends-refunds-consumers-who-bought-deceptively-marketed-supplements-treat-pain-age-

related.

FTC v. Seed Consulting, LLC, No. 2:21-cv-00154 (D. Nev. Jan. 29, 2021), available at https://www.ftc.gov/legal-

library/browse/cases-proceedings/182-3183-seed-consulting-llc.

FEDERAL TRADE COMMISSION FTC.GOV 15

personal credit cards on their behalf and inflating people’s income many times over to get high

credit lines—so that those people could pay for training programs offered by the defendants’

partners. In January 2021, the FTC and the Seed defendants reached a settlement that imposes a

$2.1 million monetary judgment, bars the defendants from charging people to obtain credit cards,

and bars the defendants from misrepresenting the financial status of anyone to a financial

institution. In September 2021, the FTC mailed checks that resulted in $1.8 million in refunds to

consumers.

In November 2022, the FTC sent a second round of checks totaling more than

$147,000 to consumers.

In OTA Franchise Corp., the FTC alleged that the defendants used false or unsubstantiated

earnings claims, often targeted at older consumers, to sell “training programs” costing as much

as $50,000.

The FTC also alleged that the defendants misrepresented that the company had a

patented “strategy” that anyone could use to generate substantial income from trading in the

financial markets. Evidence obtained by the FTC indicated that many of the defendants’

customers did not make any money, and many lost money on top of the money they paid the

defendants. Evidence obtained by the FTC also indicated that instructors’ claims of amassing

wealth were false or unsubstantiated. A federal court granted the FTC’s request for a preliminary

injunction. In September 2020, the defendants agreed to a settlement order that among other

things prohibits them from making claims about potential earnings unless the claims are truthful

and they have written documentation to support them. The defendants offered debt forgiveness to

thousands of consumers who purchased their “training programs,” which resulted in $13.3

million in debt forgiveness for consumers.

In August 2021, the FTC sent checks that resulted in

an additional $4.6 million in refunds to consumers, and in January 2023, sent a second round of

checks totaling more than $800,000.

In Neurometrix, Inc., the FTC alleged the defendants deceptively claimed their product, Quell,

an electrical nerve stimulation device, would treat pain throughout the body when placed below

the knee.

The FTC alleged that the defendants lacked scientific evidence to support widespread

chronic pain relief claims and that their claims about clinical proof and the scope of clearance by

the U.S. Food and Drug Administration (FDA) were false. The order settling the case bars the

defendants from making pain-relief claims unless they are true, not misleading, and supported by

Press Release, FTC, FTC Returns $2M to Consumers Who Paid High Upfront Fees to Get “Funding” for

Expensive, Ineffective Training Programs (Sept. 29, 2021), available at https://www.ftc.gov/news-

events/news/press-releases/2021/09/ftc-returns-2m-consumers-who-paid-high-upfront-fees-get-funding-expensive-

ineffective-training.

FTC v. OTA Franchise Corp., No. 8:20-cv-00287 (C.D. Cal. Sept. 15, 2020), available at

https://www.ftc.gov/legal-library/browse/cases-proceedings/182-3175-x200032-online-trading-academy.

Press Release, FTC, FTC Settlement Requires Online Trading Academy to Forgive Consumer Debt, and

Principals to Turn Over Millions in Cash and Assets (Sept. 15, 2020), available at https://www.ftc.gov/news-

events/news/press-releases/2020/09/ftc-settlement-requires-online-trading-academy-forgive-consumer-debt-

principals-turn-over-millions.

FTC v. Neurometrix, Inc., 1:20-cv-10428 (D. Mass. Sept. 8, 2020), available at https://www.ftc.gov/legal-

library/browse/cases-proceedings/172-3130-neurometrix-inc.

FEDERAL TRADE COMMISSION FTC.GOV 16

competent and reliable scientific evidence; prohibits misrepresentations about clinical proof or

the scope of FDA clearance; and requires them to pay redress. The order imposed a $4 million

judgment and required the defendants to turn over any future foreign licensing payments under

existing contracts at the time.

Between September 2020 and August 2021, the FTC sent checks and PayPal payments, which

resulted in over $3.4 million in refunds. In February 2023, the FTC sent another round of PayPal

payments totaling over $300,000 to 40,244 people who accepted their first payment.

3. Criminal Liaison Unit

The FTC’s Criminal Liaison Unit works with federal and state criminal prosecutors to bring

more consumer fraud cases.

Many of these prosecutors have brought criminal cases that built

on matters the FTC developed in its civil law enforcement actions, or with other forms of

assistance from the FTC.

For example, in January 2023, defendant Jennifer Shah was sentenced to 78 months in prison (or

six and a half years) for a fraudulent telemarketing scheme that victimized older Americans.

Shah was the last of 23 defendants to plead guilty from the operation, which marketed home-

based business opportunities. The FTC provided the U.S. Attorney’s Office for the Southern

District of New York information from multiple FTC matters to assist the prosecution, which to

date has resulted in sentences totaling 744 months (or 62 years), including a 60-month sentence

for former FTC defendant and scheme ringleader Ryan Hult. The FTC provided more than $7

million in redress for consumers through its civil cases.

In March 2023, the Cuyahoga County (Ohio) Prosecutor’s Office indicted three individuals and

one company who used “cryptocurrency ATMs” to defraud millions of victims, many of whom

Press Release, FTC, FTC Refunds Almost $3.9 Million to Purchasers of Deceptively Advertised Quell Wearable

Pain-Relief Device (Sept. 8, 2020), available at https://www.ftc.gov/news-events/news/press-releases/2020/09/ftc-

refunds-almost-39-million-purchasers-deceptively-advertised-quell-wearable-pain-relief-device.

Information about the FTC’s Criminal Liaison Unit is available at https://www.ftc.gov/enforcement/criminal-

liaison-unit.

Press Release, U.S. Department of Justice, Reality Show Cast Member Jennifer Shah Sentenced to 78 Months in

Prison for Running Nationwide Telemarketing Fraud Scheme (Jan. 6, 2023), available at

https://www.justice.gov/usao-sdny/pr/reality-show-cast-member-jennifer-shah-sentenced-78-months-prison-

running-nationwide.

Redress Page, FTC, FTC Sends Checks to People Who Paid for Business Coaching Services (Mar. 2023),

available at https://www.ftc.gov/enforcement/refunds/refunds-business-coaching-services.

FEDERAL TRADE COMMISSION FTC.GOV 17

were elderly.

The Prosecutor’s Office and the United States Secret Service, which coordinated

the operation, thanked the FTC for its assistance in the matter.

4. Referrals to the FBI’s Recovery Asset Team

Since 2019, the FTC has referred reports involving high dollar losses to the Federal Bureau of

Investigation (“FBI”) Internet Crime Complaint Center (IC3) Recovery Asset Team. This team’s

goal is to “streamline communication with financial institutions and assist FBI field offices with

the freezing of funds for victims who made transfers to domestic accounts under fraudulent

pretenses.”

In 2022, the FBI IC3 Recovery Asset Team responded to 2,838 incidents and with

the assistance of their banking partners, froze an impressive $433.30 million of the $590.62

million in reported losses, making recovery possible for many victims.

The FTC refers reports received through its ReportFraud.ftc.gov website and call center that

meet certain criteria (typically larger dollar losses) to the FBI IC3 Recovery Asset Team when

the consumer agrees to the referral. In the past year, the FTC has referred more than 800 reports

through its Consumer Sentinel Network to the FBI IC3’s Recovery Asset Team. Here are some

recent success stories involving older adults shared by the FBI IC3 Recovery Asset Team:

• In January 2023, an older adult reported to the FTC that their business email was

compromised, resulting in the individual receiving a spoofed email containing fraudulent

wire transfer instructions to a beneficiary trust account. The individual ultimately sent a

wire of more than $850,000 to the fraudulent account. The individual quickly reported

the incident to the FTC, and the FBI IC3 Recovery Asset Team was able to contact the

recipient bank and freeze almost the full wired amount for possible recovery.

• In March 2023, an older adult reported to the FTC that they placed a call to their

investment advisor firm because they were unable to access their online account. The call

did not go to their investment advisor, but to a spoofed phone number for Vanguard. The

individual was told their account had been blocked for inappropriate material and they

should make an almost $400,000 wire transfer to a fraudulent domestic bank account for

a cryptocurrency exchange. Since the individual reported the incident quickly to the FTC,

the FBI IC3 Recovery Asset Team was able to contact the recipient bank and freeze the

full wired amount for possible recovery.

Press Release, Cuyahoga County Office of the Prosecutor and U.S. Secret Service, Three Individuals and One

Business Indicted on Engaging in a Pattern of Corrupt Activity Among Other Charges for Operating

Cryptocurrency Kiosks in Northeast Ohio (Mar. 2, 2023), available at http://prosecutor.cuyahogacounty.us/en-

US/BOA-and-3-people-insicted-cryptocurrency-kiosks.aspx and

https://www.secretservice.gov/newsroom/releases/2023/03/three-individuals-and-one-business-indicted-engaging-

pattern-corrupt.

Department of Justice Federal Bureau of Investigation, Federal Bureau of Investigation Internet Crime Report

2022 at 9 (2022), available at https://www.ic3.gov/Media/PDF/AnnualReport/2022_IC3Report.pdf.

Id. at 10.

FEDERAL TRADE COMMISSION FTC.GOV 18

• In March 2023, an older adult reported to the FTC that they received a pop-up message

on their frozen computer screen instructing them to call a Microsoft Windows Defenders

phone number. After placing the call, the individual’s computer was taken over by the

scammer. The individual was instructed to initiate a wire transfer supposedly to the FTC

for more than $50,000 to a fraudulent domestic bank account. The individual

immediately contacted the FTC, and the FBI IC3 Recovery Asset Team was able to

contact the recipient bank and freeze the full wired amount for possible recovery.

The FTC is proud to partner with the FBI IC3’s Recovery Asset Team to help consumers,

particularly those experiencing large dollar losses, to recover funds when possible.

D. FTC Efforts to Protect Older Americans Remain

Handicapped After AMG

In the past fiscal year, the FTC continued its efforts to develop tools to enhance its law

enforcement efforts. In 2021, the Supreme Court held in AMG Capital Management that the FTC

did not have authority to seek equitable monetary relief in cases brought under Section 13(b) of

the FTC Act.

Prior to this ruling, the FTC had used its Section 13(b) authority to provide

billions of dollars in monetary restitution to consumers affected by unfair or deceptive acts or

practices, including older adults.

This decision constrained the FTC’s ability to obtain redress

for consumers. The FTC urges Congress to amend Section 13(b) of the FTC Act to revive the

FTC’s ability to provide refunds to harmed consumers and prevent violators from keeping the

money they earned by breaking the law. For example, prior to AMG Capital, Office Depot, Inc.

and a tech support software provider paid $35 million to the FTC to settle allegations that they

tricked consumers into buying millions of dollars of computer repair and technical services by

deceptively claiming that their software had found malware symptoms on consumers’

computers.

This type of relief is no longer possible. The FTC continues to strongly support

legislation to fix AMG. Without it, older Americans will continue to lose money to scammers

that the FTC cannot return to them.

E. Strategies to Provide Additional Tools Post-AMG to

Enhance FTC Enforcement Efforts

Consequently, in a response to the AMG decision, the Commission has sought to initiate

rulemakings to cover a wider category of types of practices, as our statute explicitly permits

AMG Capital Mgmt., 141 S. Ct. at 1341.

FTC Act, 15 U.S.C. § 53(b). From FY 2017 to 2021, the Commission returned $11.4 billion to consumers across

all FTC cases, including those brought solely under the FTC’s Section 13(b) authority.

FTC v. Office Depot, Inc. et al., No. 9:19-cv-80431 (S.D. Fl. March 27, 2019), available at

https://www.ftc.gov/legal-library/browse/cases-proceedings/172-3023-office-depot-inc.

FEDERAL TRADE COMMISSION FTC.GOV 19

consumer redress and/or civil penalties for rule violations.

On October 17, 2022, the FTC

issued a Notice of Proposed Rulemaking addressing impersonation of government and

businesses (“NPRM”).

The proposed rule is aimed at combatting government and business

impersonation fraud, a pernicious problem that grew worse during the pandemic.

Government

impersonators often pretend to represent institutions such as the Social Security Administration,

Medicare/Health and Human Services, IRS, or law enforcement, and may threaten their targets

with a discontinuation of government benefits, enforcement of tax liability, and even arrest or

prosecution. Business impersonators may claim there is suspicious activity on a customer’s

account or offer a refund or prize if the victim will provide some personal information.

According to FTC data, the most common type of government impersonation fraud involved the

Social Security Administration,

with more than 308,000 complaints between 2017 and 2021,

more than twice the number of the next type.

As discussed in Section IV below, analysis of

FTC reports shows older adults reported tremendous losses to impersonation scams: $271

million for business impersonation scams and $186 million for government impersonation scams

15 U.S.C. § 57(b). In addition to the Commission’s rulemaking efforts, the FTC has also revitalized its authority

to put bad actors on notice that their conduct violates the FTC Act by sending them a Notice of Penalty Offenses.

These notices outline a number of practices that the Commission has previously found to be unfair or deceptive and

highlight that engaging in this conduct could lead to civil penalties. See, e.g., Press Release, FTC, FTC Targets

False Claims by For-Profit Colleges (Oct. 6, 2021), available at https://www.ftc.gov/news-events/news/press-

releases/2021/10/ftc-targets-false-claims-profit-colleges.

Trade Regulation Rule on Impersonation of Government and Businesses, 87 Fed Reg. 62741 (Oct. 17, 2022),

available at https://www.govinfo.gov/content/pkg/FR-2022-10-17/pdf/2022-21289.pdf.

Press Release, FTC, FTC Launches Rulemaking to Combat Sharp Spike in Impersonation Fraud (Dec. 16, 2021).

“The COVID-19 pandemic has spurred a sharp spike in impersonation fraud, as scammers capitalize on confusion

and concerns around shifts in the economy stemming from the pandemic. Incorporating new data from the Social

Security Administration, reported costs have increased an alarming 85 percent year-over year, with $2 billion in

total losses between October 2020 and September 2021. Notably, since the pandemic began, COVID-specific scam

reports have included 12,491 complaints of government impersonation and 8,794 complaints of business

impersonation.”

“The FTC has been warning consumers for years about impersonation scams – calls that falsely claim to come

from the IRS, the Social Security Administration, or other offices or businesses. The messages try to coerce people

into making immediate payments or turning over sensitive personal information.” See Press Release, FTC, FTC

Data Spotlight on Scammers Impersonating Amazon: How Businesses Can Reduce Injury to Consumers (Oct. 20,

2021), available at https://www.ftc.gov/business-guidance/blog/2021/10/ftc-data-spotlight-scammers-

impersonating-amazon-how-businesses-can-reduce-injury-consumers.

Trade Regulation Rule on Impersonation of Government and Businesses, 86 Fed. Reg. 72901, 72902 (Dec. 23,

2021). “From January 1, 2017 through September 30, 2021, consumers reported 1,362,996 instances of government

impersonation and associated total losses of roughly $922,739,109.

The most common such schemes involved Social

Security Administration (SSA) impersonators, with more than 308,000 complaints alleging SSA impersonation,

followed by the IRS (124,000) and Health and Human Services/Medicare programs (125,000).”

FEDERAL TRADE COMMISSION FTC.GOV 20

in 2022. The FTC held an informal hearing on the proposed rule on May 4, 2023. This

rulemaking is ongoing.

III. Outreach and Education Activities

A. Pass It On Education Campaign

Pass It On is the FTC’s ongoing fraud prevention education campaign for older adults.

Campaign materials show respect for the readers’ life experience and accumulated knowledge

and supply them with resources to read and “pass on” to family and friends to start conversations

about fraud. The factsheets, bookmarks, videos, presentations, and other materials refresh and

add to readers’ knowledge by briefly explaining how certain scams work and what a reader can

do in response. Since the Pass It On campaign began in 2014, the number of topics it covers in

print and online has expanded, based on community partners’ requests and changes in fraud

trends. The updated catalog of print and online material addresses these 13 common frauds:

• Business Impersonator Scams

• Charity Fraud

• Government Impersonator Scams

• Grandkid and Family Scams

• Health Insurance Scams

• Home Repair Scams

• Identity Theft

• Investment Scams

• Job and Money-Making Scams

• Romance Scams

• Tech Support Scams

• Unwanted Calls and Text Messages

• “You’ve Won” Scams

The FTC has distributed almost 20 million Pass It On items since the campaign began, including

more than 2.1 million items in fiscal year 2023. The free English and Spanish print material is

The FTC also continued a number of rulemaking initiatives evaluating existing rules. Of note in the context of this

report is the Funeral Rule’s Advance Notice of Proposed Rulemaking (“ANPR”), issued on November 2, 2022,

seeking public comment, among other issues, on whether to require funeral providers to provide online the same

price disclosures that the Rule mandates when consumers visit a funeral provider in person. Funeral Industry

Practice Rule, 87 Fed. Reg. 66096, 66097 (Nov. 2, 2022). See, e.g., Press Release, FTC, FTC Seeks to Improve the

American Public’s Access to Funeral Services Online (Oct. 20, 2022), available at https://www.ftc.gov/news-

events/news/press-releases/2022/10/ftc-seeks-improve-american-publics-access-funeral-service-prices-online. The

Commission hosted a workshop on September 7, 2023 that further explored the topics raised in the ANPR. Press

Release, FTC, FTC to Host Workshop Examining Issues Related to Proposed Changes to the Funeral Rule (May 17,

2023), available at https://www.ftc.gov/news-events/news/press-releases/2023/05/ftc-host-workshop-examining-

issues-related-proposed-changes-funeral-rule.

FEDERAL TRADE COMMISSION FTC.GOV 21

requested by groups including banks, libraries, police departments, adult protective services

offices, state attorneys general, military support groups, and educational and community groups

nationwide. Campaign materials are available at www.ftc.gov/PassItOn, www.ftc.gov/Pasalo,

(Spanish), and can be ordered in print at www.ftc.gov/bulkorder.

The FTC routinely emails Consumer Alerts about the topics covered by Pass It On, as well as

about phishing scams, how to protect your data, and dealing with scammers’ demands for

payment by gift card, wire transfer, and cryptocurrency. The FTC emails the Alerts in English

and Spanish to more than 421,000 subscribers, who include individuals, community groups,

advocates, national and local news media outlets, and other stakeholders. The FTC also posts

these Alerts and materials on its consumer website, www.consumer.ftc.gov, so the public can

read, link to, and share the prevention messages.

1. Outreach to Older Adults

The FTC collaborates with many organizations across the country to share its consumer

education messages and inform the public about its work. In this reporting period, FTC staff in

Washington, DC and eight regional offices have presented, exhibited, or participated in more

than 600 outreach events with the public, other law enforcement agencies, and stakeholders

focused on protecting members of a wide range of communities from scams. More than 145

served older adults and the people who work with them or engaged partner organizations in

discussion and education about issues that affect older adults. The FTC’s outreach and education

work also focused on issues related to consumers’ financial resilience and recovery from effects

of the COVID-19 pandemic.

FTC staff participated in events for older adults together with local, state, and federal

organizations, including the Better Business Bureau (BBB), public libraries, consumer

organizations, legal services providers, state attorneys general and consumer affairs offices, and

federal agencies including the Internal Revenue Service, Social Security Administration, U.S.

Department of Veterans Affairs, and U.S. Postal Inspection Service. The FTC also joined in

multiple activities with groups including those described below.

a. AARP members

Staff educated older adults through more than 36 events with AARP members, including

nationwide and statewide Facebook Live conversations, webinars, and tele-town halls about

topics including impersonators, identity theft, scams targeting veterans, and romance, charity, and

post-disaster scams. More than 8,000 AARP members attended a tele-town hall in Ohio where

they posed questions and got advice from FTC regional staff. In Oregon, more than 350 people

turned out for the first in-person AARP scam jam since 2019 and learned about identity theft and

impersonation scams from FTC regional staff.

Information about subscribing to Consumer Alerts is available at www.ftc.gov/ConsumerAlerts.

FEDERAL TRADE COMMISSION FTC.GOV 22

b. Members of Congress

The FTC joined members of Congress and shared FTC resources at a Town Hall at Bowling

Green State University’s Elder College in Ohio, a tele-town hall for 4,700 Pennsylvania

residents, and a Senior Fraud Prevention Seminar attended by 150 people in San Francisco.

c. Military Servicemembers and Veterans

Since the FTC developed the Military Consumer initiative in 2013, the FTC, Department of

Defense Office of Financial Readiness, and Consumer Financial Protection Bureau’s Office of

Servicemember Affairs have jointly led the annual celebration of Military Consumer Month.

Throughout the month, a large network of military partners, including military, federal, and state

agencies, consumer and military advocates, and trade groups, collaborate to warn veterans and

servicemembers about the scams that target them. With more than half (56%) of current veterans

expected to be over age 60 at the end of FY 2023,

the agency’s military outreach is another

way of engaging with older adults. This year, some of the FTC’s Military Consumer Month

activities focused on older veterans. These included joining an AARP Ohio call-in program to

discuss how veterans can spot and avoid scams, as well as publishing blog posts and social

media on scams related to the PACT Act, romance scams, investments, and others.

Agency staff also joined groups including AARP, the U.S. Department of Veterans Affairs, and

the U.S. Postal Inspection Service in 23 live and virtual presentations to veterans, where they

discussed scams targeting veterans, identity theft, and how to keep information safe. In

November 2022, staff talked about scams with veterans at a VA Economic Development

Initiatives conference.

d. Older Adult Advocates and Allied Professionals

Commission staff distributed Pass It On and other education materials in English and Spanish at

several conferences related to aging, adult education, library, and older volunteer services. Staff

attended conferences of the American Society on Aging, whose 5,000 members work in a broad

range of aging disciplines; AmeriCorps Seniors, a federal program with more than 200,000

community-based older volunteers nationwide; the TRIAD of Wisconsin, a group of older

volunteers who coordinate with local law enforcement to reduce crime against older adults; and

USAging, the national association that supports Area Agencies on Aging.

National Center for Veterans Analysis and Statistics, Population Tables: The Nation: Age/Gender: Table 1L,

available at www.va.gov/vetdata/veteran_population.asp.

Consumer Alert, FTC, Veterans: You don’t have to pay for help filing for your benefits (Jul. 10, 2023), available

at https://www.militaryconsumer.gov/blog/veterans-you-dont-have-pay-help-filing-your-benefits; Consumer Alert,

FTC, Military Consumers and Romance Scams (Jul. 5, 2023), available at

https://www.militaryconsumer.gov/blog/military-consumers-and-romance-scams; Consumer Alert, FTC, Is it a

legitimate investment opportunity or a scam? (Jul. 20, 2023) available at https://www.militaryconsumer.gov/blog/it-

legitimate-investment-opportunity-or-scam.

FEDERAL TRADE COMMISSION FTC.GOV 23

The FTC works with libraries to reach communities nationwide, and help libraries and educators

address questions about consumer issues, fraud, and avoiding scams and identity theft. People

visit libraries and bookmobiles to get information, use technology, and attend programs and

lectures. More than forty percent of people aged 52-70 visited a library or bookmobile in the last

twelve months,

and more than half of people in that age range said libraries help them get

information to help with decisions.

Staff attended the Association of Bookmobile and Outreach

Services, whose members serve patrons in rural and urban locations; Coalition of Adult Basic

Education, which advances adult education and literacy; Joint Conference of Librarians Of

Color, which advocates for American Indian, Asian/Pacific American, Black, Chinese and

Latino libraries and their communities; Teachers of English to Speakers of Other Languages, an

international association of English language teaching professionals; and the Texas Library

Association, whose 5,000 members make up the nation’s largest state library association.

In 2021, the FTC launched the Community Advocate Center (CAC) to support legal services

organizations’ fraud reporting and strengthen the FTC’s connections with historically

underserved communities.

Participating legal service providers get a customized link to report

fraud and other bad business practices directly to the FTC and receive periodic email updates and

virtual briefings from the FTC. Twelve members of the CAC operate programs dedicated to

serving older adults. The FTC issued a Consumer Alert about scammers posing as TV and

internet providers based on reports from CAC member the Center for Elder Law and Justice in

New York.

Staff also deepened their connections with front line professionals, older adults, and lower

income residents of Georgia, Arkansas, and Kansas through virtual state Consumer Protection

Conversations. Each conversation, co-hosted by FTC staff and representatives from local BBB,

legal aid, and state attorney general offices, offered participants information about identity theft,

current fraud trends in their state, and consumer protection resources to use in their communities.

The FTC’s outreach partnerships with groups and communities throughout the country provide

opportunities to share the agency’s important prevention messages and foster more direct

communication lines so the FTC learns in real time about ongoing scams and other consumer

protection problems affecting the public. This, in turn, can generate ideas for policy and

education initiatives, as well as new case leads.

Pew Research Center, Millennials Are the Most Likely Generation of Americans to Use Public Libraries (June 21,

2017), available at https://www.pewresearch.org/short-reads/2017/06/21/millennials-are-the-most-likely-generation-

of-americans-to-use-public-libraries/.

Pew Research Center, Most Americans — Especially Millennials — Say Libraries Can Help Them Find

Trustworthy Information (Aug. 30, 2017), available at https://www.pewresearch.org/short-reads/2017/08/30/most-

americans-especially-millennials-say-libraries-can-help-them-find-reliable-trustworthy-information/.

The Community Advocate Center is available at https://reportfraud.ftc.gov/community.

Consumer Alert, FTC, Scammers Are Posing as Your TV and Internet Company (Oct. 19, 2022), available at

https://consumer.ftc.gov/consumer-alerts/2022/10/scammers-are-posing-your-tv-and-internet-company.

FEDERAL TRADE COMMISSION FTC.GOV 24

2. Pandemic Response

The pandemic has had a significant impact on older adults. As the effects of the pandemic have

evolved, the agency increased its outreach on issues related to financial resiliency. The outreach

includes posting and sharing advice and resources at www.ftc.gov/MoneyMatters

(www.ftc.gov/AsuntosDeDinero in Spanish) to help people learn — and teach others — how to

tackle financial issues resulting from or worsened by the pandemic. The website gathers in one

place dozens of articles, graphics, and ready-made presentations about common money issues,

including finding work, getting loans, and buying or renting a home for consumers and speakers.

Commission staff used a large-scale mailing and presentations to deliver information about

financial resiliency. In November 2022, staff mailed 13,000 folders with Pass It On fraud

prevention material to community-based organizations serving older Spanish-speaking adults in

senior centers, Area Agencies on Aging, and adult education and community centers. Staff

attended the Qualitas of Life Organization during its Financial Access Fair, called Health,

Nutrition, and Finance (Salud, Nutrición y Finanzas), and talked with attendees about buying and

saving money as part of overall consumer financial health. Staff also gave information about

consumer rights and what to know before you shop. The FTC joined the CFPB, National Center

on Elder Abuse and SAGE, an advocacy and service organization for older LGBTQ+ people, for

a webinar focused on financial wellness and introducing participants to the FTC’s Money

Matters resources. During an AARP California Facebook Live event, FTC staff discussed how to

avoid scams after a disaster and how to report scams. The event was part of AARP California’s

Let’s Talk Dinero: Protect Yourself from Fraud series. It was held in English and marketed to

California’s bilingual Latino community.

IV. Developing Effective Strategies to Protect

Older Consumers

A. Research and Data Analysis

The FTC collects and analyzes consumer report information through its Consumer Sentinel

Network (“Sentinel”). Sentinel is a secure online database that provides federal, state, and local

law enforcement agencies with access to reports from consumers about fraud and other consumer

problems. Law enforcement agencies and other organizations contribute consumer reports,

and

the FTC collects reports directly from the public through its call center and online at

ReportFraud.ftc.gov and ReporteFraude.ftc.gov (Spanish). The Sentinel database is searchable

by criteria such as the type of fraud or problem and the name, address, and telephone number of

the reported entity. Using Sentinel, the FTC and its law enforcement partners can analyze reports

Data contributors are listed at https://www.ftc.gov/enforcement/consumer-sentinel-network/data-contributors.

FEDERAL TRADE COMMISSION FTC.GOV 25

filed by older adults to look for patterns and trends, identify problematic business practices and

enforcement targets, and develop cases against targets under investigation.

1. Consumer Sentinel Reports from Older Adults

During calendar year 2022, Sentinel took in more than 5.4 million reports from consumers, both

directly and through its data contributors, about problems they experienced in the market. Over

2.5 million of the reports were about fraud, more than 1.1 million were about identity theft, and

over 1.7 million were about other consumer problems.

Consumers reported losing $9 billion to

fraud in 2022. About 44% of fraud reports filed in 2022 included consumer age information.

About a third (385,590) of reports that included age information came from people 60 and older,

and their reported losses totaled more than $1.6 billion.

Because the vast majority of frauds are

not reported, these numbers include only a fraction of older adults harmed by fraud.

These numbers are also not representative of elder financial exploitation. While elder financial

exploitation is defined as encompassing financial losses caused by both known and unknown

individuals,

Sentinel reports are overwhelmingly about fraud perpetrated by strangers that

occur on a mass scale, such as through robocalls or fake ecommerce websites. These frauds are

dissimilar to financial exploitation by family members, caretakers and other known individuals.

Recognizing the distinction between financial exploitation perpetrated by known individuals

rather than by strangers will result in better understanding of the financial harm to older adults

caused by fraud.

See generally FTC, FTC Consumer Sentinel Network (last updated July 25, 2023), available at

https://public.tableau.com/profile/federal.trade.commission. Figures are based on reports made directly to the FTC

and reports provided by all Sentinel data contributors. These figures do not include reports about unwanted calls.

Sentinel data is self-reported and not a survey. As such, individuals decide whether to file a report and what

information, if any, to provide. Not all consumers who file a report provide their age, payment method, amount of

dollar loss, and other data. As referenced in the text above, “other consumer problems” include various categories of

reports not classified as fraud, such as auto-related reports and reports about cable and satellite TV.

Data provided by the Internet Crimes Complaint Center (IC3) are excluded here and throughout this report, except

where otherwise noted, due to differences in the age ranges collected from consumers.

See Anderson, K. B., To Whom Do Victims of Mass-Market Consumer Fraud Complain? at 1 (May 2021),

available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3852323 (study showed that only 4.8 percent of

victims of mass-market consumer fraud complained to a Better Business Bureau or a government entity).

See, e.g., Weissberger, G.H., et al., Elder Abuse Characteristics Based on Calls to the National Center on Elder

Abuse Resource Line, at 19 (October 2020), available at https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6992470/

(study includes the following definition of elder financial exploitation: Improper, unauthorized, or fraudulent use of

an older person’s property by a caregiver or trusted individual (abuse) or stranger (victimization) for the benefit of

someone other than the elderly person.)

FEDERAL TRADE COMMISSION FTC.GOV 26

Key findings from the 2022 Sentinel data:

• Older adults (ages 60 and over) were still less likely than younger adults (ages 18-59) to

report losing money to fraud.

• Older adults continued to report higher individual median dollar losses than younger

adults. The disparity remained particularly large among people 80 and over compared to

younger adults.

• Older adults remained much more likely than younger adults to report losing money on

tech support scams, prize, sweepstakes and lottery scams, and family and friend

impersonation.

• Online shopping fraud continued to be the most commonly reported category of fraud in

which people of all ages indicated they lost money, but older adults remained much less

likely to report losing money to online shopping fraud than younger adults.

• Losses to investment scams continued to soar, becoming the top fraud type based on

aggregate reported losses by older adults generally. But for those 80 and over, prize,

sweepstakes and lottery scams remained the costliest.

• Aggregated reported losses and the number of reports indicating money was lost by older

adults were highest for online frauds, but reported median individual losses continued to

be highest for frauds that started with a phone call.

• Aggregate losses reported by older adults were highest on bank transfers or payments,

followed by cryptocurrency. Credit cards and gift cards were the fraud payment methods

most frequently reported by older adults.

• Analysis points to differences in how older adults in different demographic populations

may experience fraud. Most notably, older adults most likely to be Asian American and

Pacific Islander

reported a much higher share of losses to investment scams, and older

adults most likely to be Black reported a higher share of losses to prize, sweepstakes and

lottery scams.

• Working with two different assumptions on the underreporting of fraud, we estimate the

overall cost of fraud to older adults to be $5.9 billion or $48.4 billion. These figures

The gift card payment method includes cards that hold a specific cash value that can be used for purchases and

reload cards such as MoneyPak that are used to add value to these cards.

See infra note 99 which describes the method used to impute race and ethnicity for this report.

FEDERAL TRADE COMMISSION FTC.GOV 27

reflect a considerable degree of uncertainty because the scale of underreporting,

particularly when losses are high, is not well understood.

These findings, explored more fully below, help inform the FTC’s efforts to protect consumers

through consumer education, law enforcement, and policy work.

a. Most Older Adults Who Filed Fraud Reports Avoided Losing Any Money

As in previous years, the overwhelming majority of Sentinel fraud reports filed in 2022 by

people 60 or over did not indicate any monetary loss. Figure 1, which controls for population

size,

shows that older adults were 57% more likely to file these no-loss reports about fraud they

had spotted or encountered—but avoided losing money on—than people ages 18-59.

Moreover, consistent with previous years, older adults were 18% less likely to report losing

money to fraud than people ages 18-59. This suggests that older adults may be more likely to

avoid losing money when exposed to fraud, more inclined to report fraud when no loss has

occurred, or a combination of these or other factors. The FTC’s most recent fraud survey,

published in October 2019, also found that what it called the “rate of victimization” for the

various categories of frauds included in the survey was generally lower for those 65 and older

than for younger consumers.

The comparison of older adults and younger consumers is normalized against the population size of each age

group. The analysis is based on U.S. Census Bureau data for population by age. See U.S. Census Bureau, 2017-2021

American Community Survey 5-Year Estimates.

The largest share of 2022 no-loss reports by older adults were about phone scams, and these were most often calls

from scammers impersonating government agencies and businesses.

FTC Bureau of Economics Staff Report, Mass-Market Consumer Fraud in the United States: A 2017 Update at

76–79 (Oct. 2019), available at https://www.ftc.gov/system/files/documents/reports/mass-market-consumer-fraud-

united-states-2017-update/p105502massmarketconsumerfraud2017report.pdf.

FEDERAL TRADE COMMISSION FTC.GOV 28

b. Older Adults Reported Higher Median Individual Dollar Losses than

Younger Consumers

In 2022, as in previous years, younger consumers were more likely to report losing money to

fraud than older adults, but older adults who did report losing money reported higher median

individual losses (see Figure 2). People 80 and over reported median individual losses of $1,750,

far higher than any other age group. The reported median individual dollar loss increased for all

age groups in 2022 as compared to 2021.

FEDERAL TRADE COMMISSION FTC.GOV 29

Some Sentinel reports are filed on behalf of consumers by adult children, spouses, caretakers, or

others. As in prior years, 2022 Sentinel data show that adults ages 80 and over were more likely

than other age groups to have a Sentinel report filed on their behalf. Over 16% of reports for

people 80 and over indicated they were submitted by a person on behalf of the consumer, a far

higher rate than any other age group.

c. Some Types of Fraud Affected Older Adults Differently from Younger

Adults

Figure 3 displays the top fraud categories ranked by the number of reports by older adults

indicating that money was lost (loss reports). The blue bars show loss reports submitted by older

adults (age 60 and over), and the gray lines show loss reports filed by younger people (ages 18-

59) for each type of fraud. As shown in Figure 3, controlling for population size, older adults

were more likely than younger people to report financial losses to certain types of frauds. Three

categories of fraud continued to stand out in 2022. Older adults were: 1) over six times, or 517%,

more likely than younger people to report losing money on a tech support scam; 2) more than

twice as likely to report a loss on a prize, sweepstakes, or lottery scam; and 3) 73% more likely

to report a loss on a family or friend impersonation scam. Although older adults continued to be

The percentage of reports submitted by another person on behalf of a consumer in 2022 were as follows: 16.3%

(80 and over), 5.3% (70-79), 3.1% (60-69), 2.5% (50-59), 2.2% (40-49), 1.9% (30-39), 2.2% (20-29), and 3.9% (18-

19). These figures exclude reports collected by Sentinel data contributors because of differences in identifying

reports submitted by third parties.

FEDERAL TRADE COMMISSION FTC.GOV 30

less likely than younger people to report losing money to online shopping fraud, the number of

loss reports submitted by older adults on this fraud type continued to exceed any other category

of fraud reported by older adults.

Analysis of total dollars reported lost by older adults by fraud type, shown in Figure 4, highlights

the tremendous financial harm caused by investment scams, business impersonation scams, and

romance scams. Reported losses by older adults to investment scams continued to soar,

increasing from $147 million in 2021 to $404 million in 2022.

These reports often describe

fake cryptocurrency investment opportunities that target people through ads, posts, and messages

Here and throughout this section of the report, investment scams refer to fraud reports classified as miscellaneous

investments and investment advice and stocks and commodity futures trading.

FEDERAL TRADE COMMISSION FTC.GOV 31

on social media platforms.

Losses to business impersonation scams by older adults increased

78%, with Amazon impersonators once again the most frequently reported.

Reported losses to

romance scams by older adults increased 13%, topping the record levels seen in 2021.

For

adults 80 and over, the highest aggregate reported losses were again on prize, sweepstakes and

lottery scams, with $54 million reported taken in 2022.

FTC Consumer Protection Data Spotlight, Reports Show Scammers Cashing in on Crypto Craze (June 3, 2022),

available at https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2022/06/reports-show-scammers-

cashing-crypto-craze.

Amazon imposters reportedly contact consumers with false claims about compromised accounts or unauthorized

purchases. See FTC Consumer Protection Data Spotlight, Amazon Tops List of Impersonated Businesses (Oct. 20,

2021), available at https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2021/10/amazon-tops-list-

impersonated-businesses.

FTC Consumer Protection Data Spotlight, Romance Scammers’ Favorite Lies Exposed (Feb. 9, 2023), available

at https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2023/02/romance-scammers-favorite-lies-

exposed.

FEDERAL TRADE COMMISSION FTC.GOV 32

d. Loss Reports and Aggregate Losses were Highest on Online Fraud, but the

Highest Median Individual Loss Amounts were to Fraud that Started with a

Phone Call

In 2022, as shown in Figure 5, older adults filed nearly twice as many loss reports about online

fraud as phone fraud,

and their aggregate reported losses to online fraud were also higher.

However, 2022 reported median individual losses remained far higher for phone fraud at $1,800

compared to $400 for online fraud. Among the online contact methods, social media continued to

stand out, with total reported losses increasing from $163 million in 2021 to $277 million in

2022.

Also notable were text scams, which were second only to phone calls on median

individual reported losses by older adults. The total loss amount reported by older adults on text

scams more than doubled from $41 million in 2021 to $90 million in 2022.

Online frauds are defined here as those in which the consumer reported first learning about the fraud on a website

or app, on social media, or via an online ad or pop-up. Phone frauds are those in which the consumer reported first

learning about the fraud via a phone call. Text frauds belong to a category separate from phone frauds.

Median individual losses by older adults on scams reported as starting on social media increased from $460 in

2021 to $800 in 2022.

FEDERAL TRADE COMMISSION FTC.GOV 33

The types of frauds older adults most frequently reported losing money to varied by contact

method. When the contact method was a phone call, older adults most often reported dollar

losses on business impersonation scams followed by government impersonation scams and prize,

sweepstakes and lottery scams. When social media was the contact method, older adults most

often reported losing money to online shopping scams, but their highest aggregate reported

losses were on investment scams followed by romance scams.

The largest share of text scam

reports by older adults were about texts impersonating well-known businesses, particularly

banks.

People 80 and over were once again an exception. This age group continued to file loss reports

about phone fraud at higher rates than online fraud.

Their aggregate reported loss to phone

fraud in 2022 was $86 million, compared to $40 million reported lost to online fraud. About 44%

of their phone fraud losses were on prize, sweepstakes and lottery scams.

e. Bank Transfers and Cryptocurrency Held the Top Spot for Total Dollars

Lost, but Credit Cards and Gift Cards Were the Most Frequently Reported

Payment Methods

People reporting fraud frequently indicate the payment method they used. The first column in

Figure 6 shows the aggregate dollar losses that older adults reported for the payment methods

shown. Aggregate losses reported by older adults were highest on bank transfers and payments

followed by cryptocurrency. While the largest share of reported losses by older adults using both

these payment methods was on investment scams, reported losses using these methods increased

across a number of scam types, including scams impersonating businesses and government

agencies, romance scams, and tech support scams, among others.

In 2022, 49% of aggregate reported losses by older adults to fraud originating on social media were on investment

scams and 29% were on romance scams.

FTC Consumer Protection Data Spotlight, IYKYK: The Top Text Scams of 2022 (June 8, 2023), available at

https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2023/06/iykyk-top-text-scams-2022.

In 2022, adults 80 and over filed 3,182 loss reports about fraud that started with a phone call and 2,430 loss

reports about fraud that started online, with a median reported loss of $3,400 and $700 respectively.

FEDERAL TRADE COMMISSION FTC.GOV 34

The second column in Figure 6 shows that, in 2022, older adults most often reported paying

scammers with credit cards followed by gift cards. About half their reported credit card

payments were on online shopping fraud, while their reported gift card payments were

overwhelmingly on impersonation scams.

f. Identifying Differences in Fraud and Consumer Issues Affecting Older

Adults of Color

FTC research and analysis has demonstrated that different demographic communities report

different types of fraud at different rates.

This section seeks to identify trends for older adults

in Black, Latino, and Asian American and Pacific Islander (“AAPI”) populations. Although the

FTC does not collect race and ethnicity information directly from consumers, a method to impute

race and ethnicity using name and zip code information has been applied for the purpose of

FTC Staff Report, Serving Communities of Color at 41-46 (Oct. 2021), available at

https://www.ftc.gov/system/files/documents/reports/serving-communities-color-staff-report-federal-trade-

commissions-efforts-address-fraud-consumer/ftc-communities-color-report_oct_2021-508-v2.pdf.

FEDERAL TRADE COMMISSION FTC.GOV 35

identifying any trends in reporting.

Using this method, 48,001 fraud reports filed in 2022 from

older adults most likely to be Black, Latino, and AAPI were identified for analysis.

100

The results

show differences in the reported fraud types and payment methods for each community, as well

as larger reported losses for older adults most likely to be AAPI.

Figure 7 shows top fraud types by the share of total reported fraud losses by older adults most

likely to be Black, Latino, and AAPI. The gray bars represent all reports by older adults,

including reports where no race/ethnicity prediction was made. Each colored bar shows the share

of total losses from each demographic group from various types of fraud. The data suggest that

the fraud types with the highest reported dollar losses for older adults as a whole are also among

the most costly for Black, Latino and AAPI older adults. However, differences are also evident.

Most notably, 62% of all reported losses by older adults most likely to be AAPI were on

investment scams, compared to 27% of all reported losses by older adults. The median reported

loss to investment scams by older adults most likely to be AAPI was a staggering $100,000.

These reports most often describe fake cryptocurrency investment opportunities. Of reports from

older adults most likely to be Black, prize, sweepstakes and lottery scams stood out at 16% of the

total reported losses for this group compared to 9% for older adults generally. The largest share

of these losses was on scams in which consumers reported that the scammers claimed a

connection with Publishers Clearing House. Differences were less pronounced for older adults

most likely to be Latino.

The procedure used to impute race and ethnicity for this report combines information from a consumer’s first

name, surname, and home zip code, with a method known as Bayesian Improved First Name Surname Geocoding

(BIFSG). Where BIFSG could not be applied, race/ethnicity probabilities were determined using surname and zip

code (BISG) and using zip code alone where surname could not be used. Race/ethnicity was not predicted for

reports that did not include a U.S. zip code. Consumers were then classified according to their largest single

race/ethnicity probability. To check for robustness, statistics were also computed using race probabilities as weights

and threshold classification methods to ensure that the findings broadly held across methodologies. BISG is a

standard technique in fair lending analysis for banking supervision, originally explored in Mark N. Elliott et al.,

Using the Census Bureau’s Surname List to Improve Estimates of Race/Ethnicity and Associated Disparities, Health

Services and Outcomes Research Methodology 9, no. 2. (2009). For more information on BIFSG, see Ioan Voicu,

Using First Name Information to Improve Race and Ethnicity Classification, Statistics and Public Policy, Volume 5,

Issue 1 at 1-13 (2018), available at https://www.tandfonline.com/doi/full/10.1080/2330443X.2018.1427012.

100

The number of 2022 reports identified for analysis for each group were as follows: 23,602 Black, 17,112 Latino,

and 7,287 AAPI. Note that this information only includes a fraction of the older adults in these populations who

experienced fraud. One study has shown that only about 4.8 percent of the victims of mass-marketing consumer

fraud complained to the Better Business Bureau or a government agency. Anderson, K. B., To Whom Do Victims of

Mass-Market Consumer Fraud Complain? at 1 (May 2021), available

at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3852323 (study showed that only 4.8 percent of victims of

mass-market consumer fraud complained to a Better Business Bureau or a government entity). Further, research

involving nine consumer protection matters found that heavily Black and Latino areas complained substantially less

relative to their rate of victimization after controlling for other demographic characteristics. See Raval, D., Whose

Voice Do We Hear in the Marketplace?: Evidence from Consumer Complaining Behavior, Marketing Science

(2020), 39 (1), 168-87, available at http://deveshraval.github.io/complaintBehavior.pdf.

FEDERAL TRADE COMMISSION FTC.GOV 36

Figure 8 shows the differences in the top fraud contact methods reported by older adults for each

demographic group by the share of total reported fraud losses. Phone fraud accounted for a larger

share of the fraud losses reported by older adults most likely to be Black. The largest share of

these losses were to scams impersonating Publishers Clearing House. A much larger share of

aggregate losses by older adults most likely to be AAPI were to scams that started with an ad,

FEDERAL TRADE COMMISSION FTC.GOV 37

post or contact on social media. These reported losses were overwhelmingly on investment

scams.

101

Figure 9 shows the differences in the top fraud payment methods reported by older adults for

each of the three demographic groups. A larger share of aggregate losses and loss reports by

older adults most likely to be AAPI were to scams that took money by bank transfer or payment

and cryptocurrency. The largest share of these losses was on investment scams. About one in

four loss reports by older adults most likely to be Black and Latino indicated gift card as the

payment method. These losses were most often on scams impersonating businesses and

government agencies.

101

In 2022, older adults most likely to be AAPI reported losing $46 million to fraud that started with an ad or

contact on social media. About $37 million of these losses were on investment scams.

FEDERAL TRADE COMMISSION FTC.GOV 38

Fraud reports from older adults in each demographic group also show differences in individual

loss amounts and the share of reports that indicated any money was lost. The median reported

loss in 2022 was $750 for the older adults most likely to be Black, $959 for older adults most

likely to be Latino, and $2,500 for older adults most likely to be AAPI, compared to $850 for all

older adults. Aggregate reported losses were also highest for older adults most likely to be AAPI

at $138 million compared to $78 million and $72 million for older adults most likely to be Black

and Latino, respectively. As with older adults generally, most fraud reports from the three

demographic groups were no-loss reports.

102

In 2022, 24% of fraud reports by all older adults indicated a monetary loss. The share of fraud reports indicating

a monetary loss for each demographic group was as follows: 27% (Black), 26% (Latino), and 29% (AAPI).

FEDERAL TRADE COMMISSION FTC.GOV 39

g. Estimating the Overall Cost of Fraud to Older Adults

While Sentinel provides invaluable information about the nature of fraud, as well as broad trends

in fraud, estimating the cost of fraud to older adults is challenging when the data available is

limited. What’s reported to Sentinel and its contributors is far less than the fraud people actually

experience. This underreporting results in an incomplete picture of the scale of the problem. For

example, while many people don't report fraud at all, others might report it to an authority that

doesn't share reports with Sentinel. Or they might report it to an authority that shares with

Sentinel only some of the data they collect.

103

Furthermore, some populations may have lower

reporting rates than others, and some frauds may be less likely to be reported than others.

Finally, people who lose large amounts of money might be more likely to report the fraud than

people who lose less.

What is clear is that the scale of the underreporting problem is uncertain. An FTC study of mass

market fraud analyzed several FTC surveys and found that just 2.6% of consumers who

experience fraud said that they reported the incident to a government agency. However, the

frauds covered in these surveys generally resulted in low loss amounts.

104

One novel study took a more direct approach, matching FTC enforcement data in nine cases to

consumer reports about the same companies.

105

Affected consumers named in case records were

compared to consumer reports to determine whether each consumer had reported their

experience to the FTC or other data contributors. These results show an average 2.0% reporting

rate in the cases with average losses of less than $1,000 and a 6.7% reporting rate in cases with

an average loss of over $1,000. None of the cases in the study had an average loss of $10,000 or

more.

To extrapolate the missing losses and better estimate the cost of fraud – albeit with a

considerable degree of uncertainty – we take two approaches using these estimated reporting

rates. First, we assume that Sentinel includes just 2.0% of all losses from consumers who lost

under $1,000, and 6.7% of all losses from consumers who lost $1,000 or more. Given these

103

Most notably, Sentinel contains only a subset of the fraud reports collected by BBB and IC3, and 2022 BBB

reports do not generally include a dollar loss figure.

104

See Anderson, K. B., To Whom Do Victims of Mass-Market Consumer Fraud Complain? at 1 (May

2021), available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3852323. This study found that just 4.8% of

consumers who experienced a fraud reported the incident to BBB or a government agency, and 2.6% to a

government agency. This estimate was based on consumer self-reports. In “Mass Market Consumer Fraud in the

U.S.: A 2017 Update,” Anderson found the median loss of fraud victims reporting a dollar loss amount was $100,

and the 75

percentile loss was $250. See https://www.ftc.gov/system/files/documents/reports/mass-market-

consumer-fraud-united-states-2017-update/p105502massmarketconsumerfraud2017report.pdf.

105

See Raval, D., Whose Voice Do We Hear in the Marketplace?: Evidence from Consumer Complaining Behavior,

Marketing Science (2020), 39 (1), 168-87, available at http://deveshraval.github.io/complaintBehavior.pdf.

FEDERAL TRADE COMMISSION FTC.GOV 40

assumptions, the estimated 2022 overall loss, adjusted to account for underreporting, would be

$137.4 billion,

106

with an estimated $48.4 billion loss by older adults.

107

Since high dollar losses account for the lion’s share of all losses reported to Sentinel and its

contributors, the first approach might overestimate unreported fraud losses.

108

A second, more

conservative approach assumes that reporting rates are higher still for much more costly frauds.

If we assume that 100% of people who experienced losses of $10,000 or more reported, and are

therefore included in Sentinel, we would obtain a very conservative estimate of $20.5 billion in

overall fraud losses, with $5.9 billion lost by older adults.

109

2. Hearing Directly from Older Adults About FTC Impersonators

The FTC has continued to receive reports about scammers pretending to work at or be affiliated

with the FTC.

110

These scammers tell a variety of lies to convince people to buy gift cards and

share the codes, send cash or gold bars, buy cryptocurrency, transfer money, or share bank

account information. Recently, scammers have been telling people that their money, including

their retirement accounts, have been compromised, or are at risk of being frozen, and they should

106

The 2022 reported fraud loss figures used for this purpose are $98.6 million (combined reported losses under

$1,000) and $8.9 billion (combined losses of $1,000 or more). This includes the subset of IC3 data that is

contributed to Sentinel.

107

About 84% of the reported losses used in this analysis included age data, and 35.5% of these losses were reported

by adults 60 and older. We assumed that age data was “missing at random” conditional on loss amount; that is, that

consumers who did not report age had the same age distribution as consumer who did report age for a given loss

bracket. This assumption may be conservative. For example, Grosz and Raval, “Hassle Costs and Consumer Voice:

Evidence from a Website Redesign” (2023) examine a change to the FTC’s reporting website that improved

usability. Grosz and Raval, “Hassle Costs and Consumer Voice: Evidence from a Website Redesign (2023)

available at https://deveshraval.github.io/websiteRedesign.pdf. Grosz and Raval find that the change both

substantially increased consumer reports and reduced the share of consumers not reporting age, and the share of

older adults who filed a report increased the most. This could reflect either increased reports from older adults or

that older adults were more likely not to report age than other groups.

108

While just 15% of people who reported a fraud loss in 2022 lost $10,000 or more, their combined losses were

equal to 93% of all 2022 losses reported to Sentinel.

109

The 2022 reported fraud loss figures used for this purpose are $98.6 million (combined reported losses under

$1,000) and $556.6 million (combined reported losses between $1,000 and $10,000), and $8.3 billion (combined

reported losses of $10,000 or more). This includes the subset of IC3 data that is contributed to Sentinel. Losses

reported by older adults made up 20.6% of losses under $1,000, 25.3% of losses between $1,000 and $10,000, and

36.3% of losses above $10,000.

110

FTC impersonators are one of the top 5 types of government impersonator reports. See FTC, Explore

Government Imposter Scams (last updated July 25, 2023), available at

https://public.tableau.com/app/profile/federal.trade.commission/viz/GovernmentImposter/Infographic; Consumer

Alert, FTC, The FTC Won’t Demand Money, Threaten You, or Promise You a Prize (July 5, 2023), available at

https://consumer.ftc.gov/consumer-alerts/2023/07/ftc-wont-demand-money-threaten-you-or-promise-you-prize;

Consumer Alert, FTC, Will the FTC Call or Write You? Will They Demand Money? (Feb. 13, 2023), available at

https://consumer.ftc.gov/consumer-alerts/2023/02/will-ftc-call-or-write-you-will-they-demand-money.

FEDERAL TRADE COMMISSION FTC.GOV 41

move all of the funds to “protect” them. Losses from these scams can be devastating, particularly

for those losing retirement savings late in life.

The FTC has continued its program engaging with older adults who reported losing money to

FTC impersonators. These adults often talk about how these scammers tell convincing stories

that appear legitimate. The fact that the caller says they are with the FTC makes them a trusted

voice. These adults also describe how the scammers called daily to build a rapport, lowering any

suspicions as they requested more payments.

After listening to these stories, FTC staff has found it important to make sure these older adults

know that the experiences were scams and the FTC will never demand money or personal

information. Because these scammers are so good at what they do, it can be challenging to help

people believe that FTC staff are legitimate and that the truth is that the previous callers were

scammers. Taking the time to reach out to these consumers has been an important way for the

FTC to hear more about these terrible scams, while empowering these older adults with

information to identify and avoid such scams in the future.

B. Coordinated Efforts to Protect Older Consumers

The FTC’s Every Community Initiative leads the agency’s strategic planning for the protection

of older consumers. As highlighted in the 2021 Serving Communities of Color Report, different

types of consumer protection issues affect different groups of people, and this Initiative examines

the impact of various schemes on distinct groups, including older adults, military service

members and veterans, Black Americans, Latinos, Asian Americans, Native Americans,

communities who speak languages other than English, and other groups.

111

The Initiative relies

on research and input from numerous resources to develop strategies to prevent fraud, inform the

agency’s law enforcement program, and expand outreach, including from the FTC’s Senior

Fraud Advisory Office, which the FTC created pursuant to the Seniors Fraud Prevention Act of

2022,

112

and stakeholders in communities. These partnerships across the country have been

extremely valuable in the FTC’s approach to protecting older adults in a wide range of

communities from financial loss.

111

FTC Staff Report, Serving Communities of Color: A Staff Report on the Federal Trade Commission’s Efforts to

Address Fraud and Consumer Issues Affecting Communities of Color (Oct. 2021), available at

https://www.ftc.gov/system/files/documents/reports/serving-communities-color-staff-report-federal-trade-

commissions-efforts-address-fraud-consumer/ftc-communities-color-report_oct_2021-508-v2.pdf.

112

The FTC’s Senior Fraud Advisory Office advises the Commission on fraud prevention strategies, monitors the

market for emerging fraud trends impacting older adults, and coordinates with our law enforcement partners to

disseminate consumer education regarding these new trends. See Fraud and Scam Reduction Act, Section 101,

Division Q of the Consolidated Appropriations Act, 2022, Pub. L. No. 117-103, available at

https://www.congress.gov/117/plaws/publ103/PLAW-117publ103.pdf. Subtitle B of the Act, referred to as the

“Seniors Fraud Prevention Act of 2022,” requires the FTC to establish an Advisory Office to, among other

responsibilities, advise the Commission on the prevention of fraud targeting seniors, monitor the market for fraud

trends impacting older adults, and disseminate consumer education about those trends in coordination with the U.S.

Department of Health and Human Services; U.S. Department of Justice; U.S. Postal Inspection Service; and U.S.

Postal Service.

FEDERAL TRADE COMMISSION FTC.GOV 42

For example, to pursue law enforcement actions that have the largest possible impact, the FTC

coordinates with federal, state, local, and international agencies, including those with criminal

authority. Through partnerships, the FTC leverages resources to track down fraudsters and build

cases to stop them. In particular, the FTC participates in the Global Anti-fraud Enforcement

Network, a multilateral network of agencies that enforce laws prohibiting mass marketing fraud.

The Network has been pivotal in enforcement actions against entities that have defrauded

millions of older consumers.

The FTC has also continued to be an active member of the Elder Justice Coordinating Council, a

multi-agency federal entity that coordinates activities across the federal government related to

elder abuse, neglect, and exploitation. Led by the Assistant Secretary for Aging within the

Department of Health and Human Services (“HHS”), the EJCC meets twice a year with the goal

of better coordinating the federal response to elder abuse.

113

The EJCC and its staff-level

working group have strengthened the FTC’s connections with other federal government offices

that are also working to combat elder abuse and has facilitated valuable information sharing and

coordination.

C. Scams Against Older Adults Advisory Group

In addition to working with partners through the Every Community Initiative and the EJCC, the

FTC also coordinates efforts with a wide variety of stakeholders through an Advisory Group it

established pursuant to the Stop Senior Scams Act.

114

The Scams Against Older Adults Advisory

Group is comprised of twenty-one representatives from government, industry, and consumer

advocacy groups.

115

It held its first public meeting on September 29, 2022

116

where it launched

113

HHS convened the Elder Justice Coordinating Council in accordance with the Elder Justice Act passed in 2010.

The Council consists of heads of federal departments and other government entities, including the FTC, identified as

having responsibilities, or administering programs, relating to elder abuse, neglect, and exploitation. See HHS, What

is the Elder Justice Coordinating Council? (last modified Nov. 1, 2022), available at

https://www.acl.gov/programs/elder-justice/elder-justice-coordinating-council-ejcc.

114

Congress enacted the Fraud and Scam Reduction Act, Section 101, Division Q of the Consolidated

Appropriations Act, 2022, Pub. L. No. 117-103 on March 15, 2022. See

https://www.congress.gov/117/plaws/publ103/PLAW-117publ103.pdf. Subtitle A of the Act, referred to as the “Stop

Senior Scams Act,” requires the FTC to create an Advisory Group comprised of various members, including those

identified in the Act.

115

The Advisory Group is comprised of representatives of the following entities: AARP; AmeriCorps Senior;

Chamber of Digital Commerce; Commodity Futures Trading Commission; Consumer Financial Protection Bureau;

Federal Deposit Insurance Corporation; Federal Reserve Board; Federal Trade Commission; Financial Crimes

Enforcement Network; Financial Industry Regulatory Authority; Innovative Payments Association; National Retail

Federation; Office of the Attorney General for the State of Vermont; Retail Gift Card Association; Securities and

Exchange Commission; The Money Services Round Table; U.S. Department of Health and Human Services; U.S.

Department of Justice; U.S. Department of Treasury; U.S. Postal Inspection Service; and USTelecom.

116

Press Release, FTC, FTC to Convene First Meeting of Scams Against Older Adults Advisory Group on Sept. 29

(Sept. 12, 2022), available at https://www.ftc.gov/news-events/news/press-releases/2022/09/ftc-convene-first-

meeting-scams-against-older-adults-advisory-group-sept-29; see also FTC, Scams Against Older Adults Advisory

FEDERAL TRADE COMMISSION FTC.GOV 43

four initiatives to address fraud impacting older adults. These initiatives are focused on:

1) expanding consumer education efforts; 2) improving industry training on scam prevention; 3)

identifying innovative or high-tech methods to detect and stop scams; and 4) developing research

on consumer or employee engagement to reduce fraud. To tackle these initiatives, the Advisory

Group formed four committees led by the FTC and one or more Advisory Group members, and

invited interested members of the public with relevant expertise to submit applications to join a

committee. The FTC and the committee co-leads also identified key stakeholders and extended

invitations to those partners to assist the Advisory Group’s work. As a result of broad public

interest and the Advisory Group’s recruiting efforts, the four committees include a diverse array

of collaborators with expertise from academia; local, state and federal government; trade

associations, businesses, and other industry members; and consumer advocacy and other non-

profit organizations, which are all joining forces to help stop scams from impacting older

adults.

117

The committees began meeting regularly in December 2022, and are focused as

follows:

Consumer Education Committee. The Consumer Education Committee is led by AmeriCorps,

Cuyahoga County Consumer Affairs, FTC, and the U.S. Department of Treasury. The

committee’s work is divided into two parts: the Outreach Subcommittee and the Guiding

Principles Subcommittee. The Outreach Subcommittee is working to identify more effective

ways to reach older adults. To help older adults protect themselves from scams, subcommittee

members are implementing test pilot projects that involve sharing consumer education materials

with an expanded network of trusted community members. Members of this subcommittee are

using the pilot projects to experiment with new materials, partnerships, or other communication

channels to see if they result in better outcomes than their traditional outreach methods. For

example, the FTC’s own pilot, the Fraud Fighters outreach program, builds on the Pass It On

campaign, offering train-the-trainer sessions to a range of participants to determine if it enhances

the experience and results for participants and their respective audiences. The subcommittee

meets monthly to discuss important topics and assist members design or implement their pilot

projects, including the importance of word choice and plain language in messaging, the needs

and challenges of offering and delivering in-language resources, and the benefits of building

partnerships.

The Guiding Principles Subcommittee is working to glean principles to help people and

organizations of all types more effectively reach older adults on scam-related topics. They are

doing this by drawing on members’ own experiences from prior outreach efforts. Subcommittee

members derive their expertise from varied backgrounds including local, state, and federal

government, industry, and non-profit organizations. Members meet monthly to share their

Group Meeting (Sept. 2022), available at https://www.ftc.gov/news-events/events/2022/09/scams-against-older-

adults-advisory-group-meeting.

117

Press Release, FTC, FTC Announces Members of the Stop Senior Scams Act Advisory Committees Aimed at

Protecting Older Adults Against Scams (Dec. 7, 2022) available at https://www.ftc.gov/news-events/news/press-

releases/2022/12/ftc-announces-members-stop-senior-scams-act-advisory-committees-aimed-protecting-older-adults

(last visited July 5, 2023); see also FTC, Scams Against Older Adults Committee Members (last visited Sept. 2023),

available at https://www.ftc.gov/system/files/ftc_gov/pdf/sssa-committee-list.pdf.

FEDERAL TRADE COMMISSION FTC.GOV 44

outreach experiences, including materials used, research conducted or relied on, and any

measured outcomes from their past outreach campaigns. The two subcommittees will distill their

discussions and learnings into a document outlining guiding principles and best practices that

many different organizations can utilize to enhance their fraud prevention communications with

older adults.

Industry Training Committee. The Industry Training Committee is led by AARP and the FTC.

The committee’s work is focused on implementing the Stop Senior Scams Act’s mandates by

collecting information on employee training and educational materials used by industry and

discussing how they can be used as a guide to educate employees on identifying and preventing

scams that affect older adults. Committee members come from a wide range of industries

including financial institutions, digital assets, gift cards, wire transfers, retail, and other payment

companies. Committee members also include consumer advocates, trade associations, and state

and federal government. The committee has identified several principles of effective employee

training and is meeting regularly to discuss each principle in greater depth. In its meetings,

committee members volunteer to explain how their organization approaches a particular

principle and share examples of their training materials that illustrate their approach. The

committee will produce, among other outputs, a guidance document describing the principles of

effective employee training that can be applied and adapted to any industry segment.

Technology and New Methods Committee. The Technology and New Methods Committee is led

by the Consumer Financial Protection Bureau, FTC, U.S. Department of Justice, and

USTelecom. The committee’s work is concentrated on identifying technologies that can help

stakeholders spot scams and promoting other ways that stakeholders can collaborate to provide

greater protection to older adults from the impact of fraud. For example, this collaboration could

include sharing data and information more broadly to make fraud detection easier. Since

December 2022, the committee meets monthly and has focused on sharing information regarding

the strategies and techniques committee members currently use to detect and stop scams.

Committee members come from a diverse range of industries, and sharing information on their

different approaches to mitigate fraud has been educational for the members. The committee has

also invited guest speakers to present to the members on different models of effective industry

collaboration. The committee will collate a list of possible collaborations that can help provide

older adults additional protection from the impacts of fraud, and committee members will

commit to working on one or more of these projects.

Scam Prevention Research Committee. The Scam Prevention Research Committee is led by the

Consumer Financial Protection Bureau, FTC, Financial Industry Regulatory Authority,

International Association of Better Business Bureaus, and the U.S. Department of Justice. The

committee draws expertise from fraud prevention experts from non-profits, government,

industry, as well as several researchers who have authored studies relevant to the Commission’s

work. The committee has completed an initial survey of the relevant research, with a focus on

research addressing fraud prevention messaging. The committee is synthesizing the information

they have reviewed. The committee plans to identify key takeaways that can serve as a resource

for the Consumer Education Committee as it prepares information to assist those who prepare

consumer messaging or education on scam prevention on how they can integrate research-based

recommendations into existing scam prevention methods. The Scam Prevention Research

Committee also plans to prepare a resource that will highlight research gaps and propose

FEDERAL TRADE COMMISSION FTC.GOV 45

questions that warrant further exploration to encourage additional research on these topics. This

document can serve as a reference for both researchers developing proposals and for agencies

and organizations that are interested in funding research on scam prevention.

V. Conclusion

The FTC is committed to protecting older adults through aggressive law enforcement, continuing

research efforts, and effective outreach and education. It will persist in using all these tools,

while also coordinating with a wide range of stakeholders, as it works to protect older adults in

the future.

FEDERAL TRADE COMMISSION FTC.GOV 46

Appendix A – Federal Trade Commission FY 2023

Case Name

Case

Number

Court Name

Date of

Complaint

Case Type

Description

Outcome

Federal Trade

Commission v.

Passport

Automotive

Group, Inc., et

al.

8:22-cv-

02670

District of

Maryland

10/18/2022

Equal Credit

Opportunity Act

(ECOA)

Alleged the defendants

participated in deceptive and

unfair acts or practices in the

advertising, sales, and financing

of motor vehicles.

Settlement

In the Matter of

Drizly, LLC

FTC Matter

No. 2023185

FTC

Administrative

Matter

10/24/2022

Data

Privacy/Securit

Alleged that security failures by

the defendants, including the

company and CEO, led to a data

breach exposing the personal

information of about 2.5 million

consumers.

Consent

Order

In the Matter of

Chegg, Inc.

FTC Matter

No. 2023151

FTC

Administrative

Matter

10/31/2022

Data

Privacy/Securit

Alleged the defendant's lax data

security practices exposed

sensitive information about

millions of its customers and

employees.

Consent

Order

Federal Trade

Commission,

The People of

the State of

California v.

Ygrene Energy

Fund Inc.

2:22-CV-

07864

Central

District of

California

10/28/2022

Mortgage Acts

and Practices

Advertising

Rule

Alleged defendant deceived

consumers about the potential

financial impact of its financing

and unfairly recorded liens on

consumers’ homes without their

consent.

Settlement

FEDERAL TRADE COMMISSION FTC.GOV 47

Case Name

Case

Number

Court Name

Date of

Complaint

Case Type

Description

Outcome

Federal Trade

Commission v.

Vonage

Holdings Corp.,

et al.

3:22-cv-6435

District of

New Jersey

11/3/2022

Restore Online

Shoppers’

Confidence Act

(ROSCA)

Alleged the defendants unfairly

charged consumers without their

express informed consent and

failed to provide simple

mechanisms to cancel their

service.

Settlement

Federal Trade

Commission v.

ACRO Services

LLC, et al.

3:22-cv-

00895

Middle District

of Tennessee

11/7/2022

Telemarketing

Sales Rule

(TSR)/Credit

Repair

Alleged the defendants violated

the TSR by using telemarketers to

call consumers and pitch their

deceptive credit card debt relief

scheme.

Default

Judgment

Federal Trade

Commission v.

DK Automation

LLC, et al.

1:22-cv-

23760

Southern

District of

Florida

11/16/2022

Business

Opportunity

Rule/Consumer

Review

Fairness Act

(CRFA)

Alleged the defendants made

false or unsubstantiated earnings

claims, violated the Business

Opportunity Rule by making

false claims and failing to provide

required disclosures, and violated

prior Commission decisions

regarding money-making claims

and endorsements.

Settlement

Federal Trade

Commission v.

Precision

Patient

Outcomes, Inc.,

et al.

4:22-cv-

07307

Northern

District of

California

11/18/2022

COVID-19

Consumer

Protection Act

(CCPA)

Alleged the defendants

deceptively advertised that their

dietary supplement

"COVID/VIRUS Resist" treats,

prevents, or mitigates COVID-19.

Litigation

Ongoing

FEDERAL TRADE COMMISSION FTC.GOV 48

Case Name

Case

Number

Court Name

Date of

Complaint

Case Type

Description

Outcome

United States of

America, State

of Wisconsin v.

Consumer Law

Protection

LLC., et al.

(Square One)

4:22-cv-

01243

Eastern

District of

Missouri

11/21/2022

FTC's Cooling

Off Rule

Alleged the defendants scammed

consumers—mostly older

adults—out of more than $90

million in a massive timeshare

exit scam.

Litigation

Ongoing

In the Matter of

Google LLC

and

iHeartMedia,

Inc.

FTC Matter

No. 2023092

FTC

Administrative

Matter

11/28/2022

False

Endorsement

Claims

Alleged the defendants had on-air

talent make false endorsement

claims for the Google Pixel 4

phone.

Consent

Order

United States of

America v. Epic

Games, Inc.

5:22-CV-

00518

Eastern

District of

North Carolina

12/19/2022

Children’s

Online Privacy

Protection Rule

(COPPA) and

use of unfair

design

Alleged the defendants violated

the Children’s Online Privacy

Protection Act (COPPA) and

used unfair default settings that

exposed users to harm.

Settlement

In the Matter of

Epic Games,

Inc.

FTC Matter

No. 1923203

FTC

Administrative

Matter

12/19/2022

Unfair Billing

Practices and

Unfair Denial of

Account Access

Alleged the defendants used dark

patterns and other deceptive

practices to trick players into

making unwanted purchases and

let children rack up unauthorized

charges without any parental

involvement.

Consent

Order

FEDERAL TRADE COMMISSION FTC.GOV 49

Case Name

Case

Number

Court Name

Date of

Complaint

Case Type

Description

Outcome

United States of

America v.

Eliza Johnson

Bacot

1:23-cv-

00058

Northern

District of

Georgia

1/5/2023

COVID-19

Consumer

Protection Act

Alleged the defendant made

numerous claims about the ability

of various doTERRA products to

prevent, treat, or cure COVID-19.

Settlement

United States of

America v. Dr.

Tina Wong

2:23-cv-

00063

Central

District of

California

1/5/2023

COVID-19

Consumer

Protection Act

Alleged the defendant made

numerous claims about the ability

of various doTERRA products to

prevent, treat, or cure COVID-19.

Settlement

United States of

America v.

Lauren Busch

2:23-cv-

00009

District of

Utah

1/5/2023

COVID-19

Consumer

Protection Act

Alleged the defendant made

numerous claims about the ability

of various doTERRA products to

prevent, treat, or cure COVID-19.

Settlement

Federal Trade

Commission v.

Wealthpress

Holdings LLC,

et al.

3:23-cv-46

Middle District

of Florida

1/12/2023

Restore Online

Shoppers’

Confidence Act

and Notice of

Penalty

Offenses

Alleged the defendants used

deceptive and unsubstantiated

earnings claims to sell consumers

investment advising services.

Settlement

In the Matter of

Instant Brands

LLC

FTC Matter

No. 2223140

FTC

Administrative

Matter

1/18/2023

Made In USA

(MUSA)

Alleged the defendant made false

claims that all of its popular glass

measuring cups were made in the

United States during a time when

some measuring cups were

imported from China.

Consent

Order

FEDERAL TRADE COMMISSION FTC.GOV 50

Case Name

Case

Number

Court Name

Date of

Complaint

Case Type

Description

Outcome

In the Matter of

LCA-Vision

(LasikPlus)

FTC Matter

No. 1923157

FTC

Administrative

Matter

1/19/2023

Deceptive

Advertising

Alleged the defendant used

deceptive bait-and-switch

advertising to mislead consumers

into believing they could have

their vision corrected for less than

$300.

Consent

Order

United States of

America v.

GoodRx

Holdings, Inc.

3:23-cv-460

Northern

District of

California

2/1/2023

Health Breach

Notification

Rule (HBNR)

Alleged the defendant committed

deceptive and unfair practices by

sharing consumers’ personal

health information with

Facebook, Google, and other

companies, and violated the

Health Breach Notification Rule

by failing to notify consumers of

those unauthorized data

disclosures.

Settlement

In the Matter of

The Bountiful

Company

FTC Matter

No. 2223019

FTC

Administrative

Matter

2/16/2023

Review

Hijacking

Alleged the defendant deceived

consumers into thinking that its

newly introduced supplements

had more product ratings and

reviews, higher average ratings,

and “#1 Best Seller” and

“Amazon’s Choice” badges.

Consent

Order

FEDERAL TRADE COMMISSION FTC.GOV 51

Case Name

Case

Number

Court Name

Date of

Complaint

Case Type

Description

Outcome

United States of

America v.

Stratics

Networks, Inc.,

et al.

3:23-cv-

00313

Southern

District of

California

2/16/2023

Telemarketing

Sales Rule

Alleged the defendants

transmitted millions of illegal

VoIP and ringless voicemail

robocalls pitching phony debt

relief services.

Partial

Settlement,

Litigation

Ongoing

In the Matter of

BetterHelp, Inc.

FTC Matter

No. 2023169

FTC

Administrative

Matter

3/2/2023

Data

Privacy/Securit

Alleged the defendant revealed

consumers’ sensitive data with

third parties such as Facebook

and Snapchat for advertising after

promising to keep such data

private.

Consent

Order

United States of

America v.

Dalal A.

Akoury, et al.

(AWAREmed)

2:23-cv-

00026

Eastern

District of

Tennessee

3/16/2023

Opioid

Addiction

Recovery Fraud

Prevention Act

(OARFPA)

Alleged the defendants made

false or unsupported claims for

addiction treatment services,

cancer treatment services, and the

treatment of other serious

conditions.

Settlement

United States of

America v.

Nexway Sasu, et

al.

1:23-cv-

00900

District of

Columbia

4/3/2023

Telemarketing

Sales Rule

Alleged the defendants worked

with telemarketers who made

misrepresentations to consumers

about the performance and

security of their computers in

connection with the sale of bogus

technical support services.

Settlement

FEDERAL TRADE COMMISSION FTC.GOV 52

Case Name

Case

Number

Court Name

Date of

Complaint

Case Type

Description

Outcome

In the Matter of

Cycra, Inc.

FTC Matter

No. 2323007

FTC

Administrative

Matter

4/5/2023

Made In USA

Alleged the defendants falsely

claimed that the company’s

products were manufactured in

the U.S.

Consent

Order

Federal Trade

Commission,

Office of the

Attorney

General, State

of Florida v.

Global E-

Trading LLC

(Chargebacks91

8:23-cv-

00795

Middle District

of Florida

4/12/2023

Unfairness

Alleged the defendants used

multiple unfair techniques to

prevent consumers from

successfully winning chargeback

disputes.

Litigation

Ongoing

Federal Trade

Commission v.

SL Finance

LLC, et al.

8:23-cv-

00698

Central

District of

California

4/24/2023

TSR/CCPA/Gra

mm-Leach-

Bliley Act

(GLB Act)

Alleged the defendants operated

unlawful student loan debt relief

schemes.

Litigation

Ongoing

Federal Trade

Commission v.

BCO Consulting

Services, Inc., et

al.

8:23-cv-

00699

Central

District of

California

4/24/2023

TSR/CCPA/

GLB Act

Alleged the defendants operated

unlawful student loan debt relief

schemes.

Litigation

Ongoing

FEDERAL TRADE COMMISSION FTC.GOV 53

Case Name

Case

Number

Court Name

Date of

Complaint

Case Type

Description

Outcome

United States of

America v.

Xcast Labs, Inc.

23-cv-03646

Central

District of

California

5/12/2023

Telemarketing

Sales Rule

Alleged the defendant, a Voice

Over Internet Protocol (VOIP)

provider, assisted and facilitated

the dialing of billions of calls that

violated the Telemarketing Sales

Rule (TSR).

Litigation

Ongoing

United States of

America v.

Edmodo, LLC

3:23-cv-

02495

Northern

District of

California

5/22/2023

Children’s

Online Privacy

Protection Rule

Alleged the defendant collected

personal data from children

without obtaining their parent’s

consent and used that data for

advertising, in violation of the

COPPA Rule, and unlawfully

outsourced its COPPA

compliance responsibilities to

schools.

Settlement

Federal Trade

Commission v.

Ring LLC

1:23-cv-1549

District of

Columbia

5/31/2023

Data

Privacy/Securit

Alleged the defendant

compromised its customers’

privacy by allowing any

employee or contractor to access

consumers’ private videos and by

failing to implement basic

privacy and security protections,

enabling hackers to take control

of consumers’ accounts, cameras,

and videos.

Settlement

FEDERAL TRADE COMMISSION FTC.GOV 54

Case Name

Case

Number

Court Name

Date of

Complaint

Case Type

Description

Outcome

United States of

America v.

Amazon.com,

Inc., et al.

2:23-cv-

00811

Western

District of

Washington

5/31/2023

Children’s

Online Privacy

Protection Rule

Alleged the defendant violated

the Children’s Online Privacy

Protection Act Rule (COPPA

Rule) and deceived parents and

users of the Alexa voice assistant

service about its data deletion

practices.

Settlement

United States of

America v.

Microsoft

Corporation

2:23-cv-

00836

Western

District of

Washington

6/5/2023

Children’s

Online Privacy

Protection Rule

Alleged the defendant violated

COPPA by collecting personal

information from children who

signed up to its Xbox gaming

system without notifying their

parents or obtaining their parents’

consent, and by illegally retaining

children’s personal information.

Settlement

Federal Trade

Commission v.

Vision Online,

Inc. (dba

Ganadores

Online) et al.

6:23-cv-

01041

Middle District

of Florida

6/5/2023

Business

Opportunity

Rule/

CRFA/Cooling-

Off Rule

Alleged the defendants operated

an ecommerce and real estate

investment business opportunity

scheme that targeted Spanish-

speaking consumers with false

money-making pitches.

Litigation

Ongoing

FEDERAL TRADE COMMISSION FTC.GOV 55

Case Name

Case

Number

Court Name

Date of

Complaint

Case Type

Description

Outcome

In the Matter of

1Health.io,

Inc./Vitagene,

Inc.

FTC Matter

No. 1923170

FTC

Administrative

Matter

6/16/2023

Data Privacy/

Security

Alleged the defendant left

sensitive genetic and health data

unsecured, deceived consumers

about their ability to get their data

deleted and changed its privacy

policy retroactively without

adequately notifying and

obtaining consent from

consumers whose data the

company had already collected.

Consent

Order

Federal Trade

Commission v.

Amazon.com,

Inc.

2:23-cv-0932

Western

District of

Washington

6/21/2023

Restore Online

Shoppers’

Confidence Act,

Alleged the defendant used

manipulative, coercive, or

deceptive user-interface designs

known as “dark patterns” to trick

consumers into enrolling in

automatically renewing Prime

subscriptions and that Amazon

knowingly complicated the

cancellation process for Prime

subscribers who sought to end

their membership.

Litigation

Ongoing

In the Matter of

Chaucer

Accessories,

Inc.; Bates

Accessories,

Inc. et al.

FTC Matter

No. 2223163

FTC

Administrative

Matter

6/26/2023

Made In USA

Alleged the defendants falsely

made claims that certain

company products were

manufactured in the U.S.

Consent

Order

FEDERAL TRADE COMMISSION FTC.GOV 56

Case Name

Case

Number

Court Name

Date of

Complaint

Case Type

Description

Outcome

Federal Trade

Commission v.

Publishers

Clearing House

LLC

2:23-cv-

04735

Eastern

District of

New York

6/26/2023

CAN-SPAM

Act

Alleged the defendant used “dark

patterns” to mislead consumers

about how to enter the company’s

well-known sweepstakes

drawings and made them believe

that a purchase is necessary to

win or would increase their

chances of winning, and that their

sweepstakes entries are

incomplete even when they are

not.

Settlement

United States of

America v.

Michael J.

Connors et al.

(Smoke Away)

2:23-cv-

00475

Middle District

of Florida

6/29/2023

Opioid

Addiction

Recovery Fraud

Prevention Act

Alleged the defendants

deceptively marketed their

Smoke Away products as able to

eliminate consumers’ nicotine

addiction and enable them to quit

smoking quickly, easily, and

permanently.

Settlement

United States of

America v.

Hello Hello

Miami, LLC et

al.

1:23-cv-

22553

Southern

District of

Florida (Miami

Division)

7/10/2023

Telemarketing

Sales Rule

Alleged the defendants assisted

and facilitated illegal robocalls,

including calls to consumers on

the National Do Not Call

Registry, and misrepresented

themselves as representatives of

Amazon.

Litigation

Ongoing

FEDERAL TRADE COMMISSION FTC.GOV 57

Case Name

Case

Number

Court Name

Date of

Complaint

Case Type

Description

Outcome

Federal Trade

Commission v.

Celsius

Network, Inc. et

al.

1:23-cv-

06009

Southern

District of

New York

7/13/2023

Gramm-Leach-

Bliley Act

Alleged the defendants misled

consumers into transferring

cryptocurrency onto the platform

by falsely promising that deposits

would be safe and always

available.

Partial

Settlement,

Litigation

Ongoing

United States of

America, and

State of Arizona

v. Vision Solar

LLC, Solar

Xchange LLC,

et al.

2:23-cv-

01387

District of

Arizona

7/14/2023

Telemarketing

Sales Rule

Alleged the defendants made

misrepresentations during sales

pitches and called consumers on

the National Do Not Call

Registry.

Partial

Settlement,

Litigation

Ongoing

United States of

America v.

Viceroy Media

Solutions, LLC

d/b/a

quickjobs.com,

et al.

3:23-cv-

03516

Northern

District of

California

7/14/2023

Telemarketing

Sales Rule

Alleged the defendants assisted

and facilitated their partners

placing millions of illegal

robocalls that were based on

leads and invalid consent

gathered on the defendants'

websites in violation of the TSR.

Settlement

United States of

America v.

Yodel

Technologies,

LLC et al.

8:23-cv-1575

Middle District

of Florida

(Tampa

Division)

7/14/2023

Telemarketing

Sales Rule

Alleged the defendants violated

the TSR by placing illegal calls to

numbers on the National Do Not

Call Registry and illegally

placing calls with pre-recorded

messages.

Settlement

FEDERAL TRADE COMMISSION FTC.GOV 58

Case Name

Case

Number

Court Name

Date of

Complaint

Case Type

Description

Outcome

United States of

America v.

Fluent, LLC et

al.

9:23-cv-

81045

Southern

District of

Florida

7/17/2023

Telemarketing

Sales Rule

Alleged the defendants used false

or misleading promises of job

opportunities or valuable items to

induce consumers to divulge

personal information on their

websites and then sold this

information to third parties that

used it to bombard consumers

with unwanted robocalls, spam

text messages, and commercial

emails.

Settlement

Federal Trade

Commission v.

Rejuvica LLC,

et al.

8:23-cv-

01286

Central

District of

California

7/18/2023

Opioid

Addiction

Recovery Fraud

Prevention Act

Alleged the defendants made

false claims that their product

reduced or eliminated cravings

for alcohol and that it enabled

consumers to reduce their alcohol

consumption or quit drinking

completely.

Settlement

United States of

America v.

ConsumerInfo.c

om, Inc.

8:23-cv-

01494

Central

District of

California

08/14/2023

CAN-SPAM

Act

Alleged the defendants violated

the CAN-SPAM Act by sending

consumers marketing offers

without providing clear and

conspicuous notice of a

consumer’s right to opt out of

receiving marketing messages or

a mechanism to opt out.

Settlement

FEDERAL TRADE COMMISSION FTC.GOV 59

Case Name

Case

Number

Court Name

Date of

Complaint

Case Type

Description

Outcome

Federal Trade

Commission v.

Automators

LLC, et al.

3:23-cv-

01444

Southern

District of

California

08/08/23

Business

Opportunity

Rule/CRFA

Alleged the defendants promised

consumers high returns as

“passive investors” in profitable

e-stores powered by artificial

intelligence.

Litigation

Ongoing

Federal Trade

Commission v.

Intercontinental

Solutions LLC,

et al.

8:23-cv-

01495

Central

District of

California

08/14/23

TSR/GLB

Alleged the defendants pretended

an affiliation with the U.S.

Department of Education to make

deceptive promises about student

loan forgiveness programs that

cost consumers millions in illegal

upfront fees.

Litigation

Ongoing

Federal Trade

Commission v.

KW Technology

Inc., et al.

1:23-cv-

06633

Eastern

District of

New York

9/6/23

COVID-19

Consumer

Protection Act

Alleged the defendants made

false and deceptive claims about

their product named "the

Invisible Mask," which they

stated prevented COVID-19.

Litigation

Ongoing

Federal Trade

Commission v.

Instant

Checkmate,

LLC, et al.

3:23-cv-

01674

Southern

District of

California

09/11/23

Fair Credit

Reporting Act

(FCRA)/

Deceptive

Advertising and

Endorsement

Claims

Alleged that defendants sold

background reports to consumers

and made numerous deceptive

claims, including that the reports

were the most accurate reports

available, that individuals had

criminal records when they did

not, and that consumers could

remove inaccurate information in

the background reports.

Settlement

FEDERAL TRADE COMMISSION FTC.GOV 60

Case Name

Case

Number

Court Name

Date of

Complaint

Case Type

Description

Outcome

Federal Trade

Commission v.

Hey Dude, Inc.

2:23-cv-1412

District of

Nevada

09/11/23

Deceptive

Endorsement

Claims/Mail,

Internet, or

Telephone

Order

Merchandise

Rule

Alleged that defendant misled

consumers by suppressing

negative reviews, and failed to

respond appropriately when they

were unable to ship consumers’

orders on time.

Settlement

Federal Trade

Commission v.

Lurn, Inc., et al.

8:23-cv-

02622

District of

Maryland

09/27/23

Deceptive

Earnings

Claims/TSR/

Notice of

Penalty

Offenses

Alleged the defendants used

deceptive and unsubstantiated

earnings claims to sell consumers

business coaching services.

Settlement

Federal Trade Commission

ftc.gov