• by Ray Schultz , August 8, 2017

Email played a role in a wide-ranging online scam, according to a lawsuit announced yesterday by the Federal Trade Commission.

The FTC filed charges against several firms and individuals, alleging that they deceptively lured consumers into an expensive negative option swindle. The civil case is on file with the U.S. District Court for the District of Nevada.

The court temporarily halted the operation and froze its assets, at the request of the FTC. The FTC is seeking a permanent injunction, restitution and “disgorgement of ill-gotten monies.”  

The suit alleges that the defendants worked through a network of 78 companies and operated at least 87 websites.

In addition, they used dozens of bank accounts to launder profits and hide their ownership, the commission adds.

The victims were tricked into providing billing information, and charged about $100 a month unless they canceled within eight days, the FTC continues. The firms deceived consumers with “hidden fine-print disclosures and confusing terms,” it adds.

The defendants also worked through affiliates, one of which sent emails inviting consumers to fill out "customer satisfaction surveys" for trusted merchants, the FTC adds.  

According to the complaint, these included “department store Kohl's and online retailer Amazon. In fact, the surveys were not affiliated with these retailers.”

The complaint continues that “their emails asked consumers to answer a series of questions about their "satisfaction" with the named retailers. At the end of the survey, the affiliate marketer offered consumers a choice of 'rewards' for participating in the survey.”

However, “in numerous instances, the affiliate directed consumers who clicked on the tooth-whitening reward to one of Defendants' websites offering trial products for $1.03 plus shipping,” the FTC adds.  

Once they were on board, an order confirmation page tricked consumers into signing up for a second monthly charge for an identical product, while they agreed to a single shipment for $1.03 plus shipping costs -- about $200 a month until they canceled both unauthorized subscriptions.

The defendants are charged with violating the FTC Act and the Restore Online Shoppers’ Confidence Act.

The FTC claims that “consumers have suffered and will continue to suffer substantial injury” due to the violations, and the defendants have been “unjustly enriched.”

It was not known at deadline whether the defendants had filed a response. Not all defendants face all charges, and the case has yet to be tried.

The defendants are: Blair McNea, Danielle Foss, Jennifer Johnson, Boulder Creek Internet Solutions Inc., Walnut Street Marketing Inc., and these LLCs: Anasazi Management Partners, RevMountain, Wave Rock, Juniper Solutions, Jasper Woods, Wheeler Peak Marketing, ROIRunner, Cherry Blitz, Flat Iron Avenue, Absolutely Working, Three Lakes, Bridge Ford, How and Why, Spruce River, TrimXT, Elation White, IvoryPro, Doing What’s Possible, RevGuard, RevLive!, Blue Rocket Brands, Convertis, Convertis Marketing, Turtle Mountains, Boulder Black Diamond, Mint House, Thunder Avenue, University & Folsom, Snow Sale, Brand Force, Wild Farms, Salamonie River, Indigo Systems, Night Watch Group, Newport Crossing, Greenville Creek, Brookville Lane, Honey Lake, Condor Canyon, Brass Triangle, Solid Ice, Sandstone Beach, Desert Gecko, Blizzardwhite, Action Pro White, First Class Whitening, Spark Whitening, Titanwhite, Dental Pro At Home, Smile Pro Direct, Circle of Youth Skincare, DermaGlam, Sedona Beauty Secrets, Bella at Home, SkinnyIQ, Body Tropical, and RoadRunner B2C LLC, also doing business as RevGo.