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07/02/2024

FTC Acts to Stop UnauthorDefendants Allegedly Participated in Unauthorized Billing Scheme Involving CBD and Keto-Related Productsized Billing Scams That Have Taken in Over $200 Million from Consumers

FTC

A U.S. district court in central Florida today unsealed a Federal Trade Commission complaint charging two related groups of defendants with defrauding consumers nationwide by enrolling them, without their knowledge, into continuity plans where they are shipped and charged repeatedly for personal care products that they did not agree to purchase.

The defendants allegedly deceived consumers with ads for “free” CBD and Keto-related personal care products, billing many for products they did not consent to purchase, signing many up for unwanted continuity plans, and debiting money from their bank accounts without prior authorization. In addition, the FTC alleges that some of the defendants laundered credit card payments by setting up bank accounts for shell companies using straw signers.

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