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This week, the Federal Trade Commission (FTC) announced that a company’s president and CEO must pay a $140 million judgment based on participation in a timeshare exit scheme. The FTC also took action that backed Chairman Ferguson’s prioritization of healthcare fraud with the establishment of a Healthcare Task Force in March. More on these stories after the jump.
Monday, April 20, 2026
Bureau of Consumer Protection; Advertising and Marketing; Timeshares
- A judge in the Eastern District of Missouri granted the Department of Justice’s and state of Wisconsin’s summary judgment motion against the president and CEO of a company that operated a timeshare exit scam that allegedly defrauded mostly older adults out of more than $90 million. According to the complaint, defendants used direct mail and in-person presentations to falsely claim affiliations with timeshare companies, falsely state that consumers could not exit timeshares without paying their excessive fees, and to withhold promised refunds. In violation of the FTC’s Cooling-Off Rule, which grants consumers the right to cancel door-to-door sales contracts within three business days of the sale, the scheme also required consumers to sign contracts they were told were non-cancelable. The court’s order permanently prohibits the defendants from selling or promoting timeshare exit services in any capacity, engaging in deceptive door-to-door sales, and engaging in other misleading conduct according to the complaint. Further, the defendants must pay $95 million in consumer redress and a $45 million civil penalty.
Wednesday, April 22, 2026
Bureau of Consumer Protection; Health Care
- A judge in the Southern District of Florida issued a temporary restraining order to stop an allegedly fraudulent health insurance sales operation. According to the FTC’s complaint, since at least 2023, a group of defendant companies and executives jointly operated a nationwide fraudulent telemarketing scheme targeting consumers seeking comprehensive health insurance. Defendants allegedly fraudulently stated that they offered “state-issued” PPO policies with no deductibles, full coverage, and low or no co-payments. However, defendants did not offer viable health plans for any state or federal marketplace. Defendants’ scheme targeted uninsured and insured consumers. With insured consumers, defendants’ telemarketers allegedly impersonated insurance carriers or government representatives and pressured consumers to immediately pay to avoid cancellation of an existing health plan policy. The FTC alleges violations of the FTC Act, the Telemarketing Sales Rule, the Impersonation Rule, and the Gramm-Leach-Bliley Act, and seeks refunds for affected consumers. The Commission voted 2-0 to file the complaint.
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