FTC Updates (August 4 –August 22, 2025)

The FTC continues to prioritize consumer protection and fair competition, taking significant steps to prosecute and deter offenders while returning funds to consumers in recent cases. In August 2025, the agency secured a $14 million settlement with Match Group, Inc. to stop deceptive advertising and billing practices in the online dating industry. Additionally, the FTC addressed antitrust concerns in the transportation sector by ensuring that collaboration among industry leaders does not hinder competition. The agency also commenced lawsuits against ticket resellers and scored a major victory in a pending case against a multi-level marketing company. Finally, the Commission initiated actions against multiple companies for false or misleading claims, revealing its current priorities and thinking on claims related to Artificial Intelligence ("AI"). These stories, and more, after the jump.

Wednesday, August 6, 2025

Bureau of Consumer Protection: Health Insurance

• The Federal Trade Commission (FTC) sued two entities, Assurance IQ, LLC and MediaAlpha, Inc., alleging that they misled consumers looking to purchase comprehensive health insurance. First, the complaint against Assurance, filed in Washington federal court, alleges that Assurance violated the FTC Act and the Telemarketing Sales Rule (TSR) by deceiving consumers about the actual costs and benefits of health plans and improperly charged consumers without getting their express informed consent. Next, and relatedly, the complaint against MediaAlpha, filed in California federal court, alleges MediaAlpha violated the FTC Act, the TSR and the Impersonation rule by using misleading domain names (like ObamacarePlans.com) and hiring celebrities to promote a non-existent government health insurance program to drive consumers to its sites. Both Assurance and MediaAlpha have agreed to settle the FTC's claims. They both have agreed to cease making any such representations again, and Assurance has agreed to a $100 million judgment, and MediaAlpha has agreed to a $45 million judgment.

Tuesday, August 12, 2025

Bureau of Consumer Protection: Online Advertising and Marketing

• In a significant move to protect consumers and in another signal to online businesses that the FTC requires clear and simple cancellation flows and policies, the FTC announced a settlement with Match Group, Inc., the parent company of popular dating platforms such as Tinder, Match.com, and OkCupid. The FTC's investigation revealed that Match Group engaged in misleading advertising tactics that misrepresented the ease of canceling subscriptions and the costs associated with membership. Consumers often found themselves trapped in recurring billing cycles due to unclear cancellation procedures and hidden fees. The company agreed to pay $14 million and implement changes to permanently halt deceptive advertising, cancellation, and billing practices. Additionally, the company is required to revise its advertising and billing practices to ensure transparency and fairness. This includes clear disclosures about subscription terms and straightforward cancellation processes.

Monday, August 18, 2025

Bureau of Consumer Protection: Ticket Resellers

• The Commission sued a ticket broker operation, Key Investment Group, alleging violations of Section 5 of the FTC Act and the Better Online Ticket Sales Act. Specifically, in the complaint filed in Maryland federal court, the FTC alleges that Key Investment Group and its affiliated companies operated a scheme to unlawfully evade ticket purchasing limits per person for popular events by using thousands of accounts to purchase tickets while hiding their identity behind fake IP addresses and using SIM boxes to handle verification codes. This allowed Key Investment Group and its affiliates to purchase at least 379,776 tickets in one year, which the companies resold to consumers at a significant markup. The complaint seeks civil penalties and a permanent injunction against the companies.

Thursday, August 21, 2025

Bureau of Consumer Protection: Multi-Level Marketing

• The FTC obtained a preliminary injunction against IM Mastery Academy following the filing of a complaint in May 2024 in federal court in Nevada alleging IM Mastery Academy violated Section 5 of the FTC Act, ROSCA, the Telemarketing Sales Rule, and Nevada's Deceptive Trade Practices Act by engaging in a wide-ranging investment training multi-level marketing scheme. Under the alleged scheme, consumers would buy into the company's business venture, which required consumers to market the company's training services to others. The complaint further alleges that the company's "trainers" are often merely salespeople with no formal training, and defendants made deceptive claims that consumers would likely make substantial profits by purchasing the training services. On August 18, 2025, Judge Cristina D. Silva issued a preliminary injunction finding that the FTC had established a likelihood of success on its claims. The injunction freezes the defendants' assets, appoints a monitor, and prohibits the defendants from (1) making any unsubstantiated earnings claims, (2) misrepresenting facts about requirements or policies, (3) failing to clearly disclose material terms of any negative option transactions, or (4) violating the FTC's Telemarketing Sales Rule.

Monday, August 25, 2025

Bureau of Consumer Protection: Online Advertising and Marketing

• The FTC has reached a proposed settlement with Click Profit, LLC and others, in which they will be permanently banned from the E-Commerce Business Opportunity industry. In its March complaint, the Agency alleged that Click Profit et. al. deceived consumers by making false and unsubstantiated claims about (1) potential earnings, (2) its use of AI and existence of brand partnerships with key suppliers, and (3) use of threats, intimidation, and illegal contract clauses to suppress truthful negative reviews of its services. In line with the allegations, the defendants will be banned from the sales, marketing or operations of any business opportunity; making false claims about potential earnings, affiliation with other businesses, and use of AI; and restricting consumers from reviewing or sharing truthful information about the defendants and their business practices. If this sounds familiar it's because the FTC took similar action against another Business Opportunity company, Ascent, back in July, which we covered in our blog.
• "The FTC is focused on ensuring the promise of new technology isn't misused as a means to mislead consumers." This statement comes from the FTC's Director of the Bureau of Consumer Protection upon taking action against Air AI. The Agency filed a complaint in federal district court alleging that Air AI, its owners, and five other companies, used deceptive claims about business growth, earnings potential, and refund guarantees to target small businesses and entrepreneurs. The FTC asserts that defendants made false or unsubstantiated claims about potential earnings, falsely claimed to offer a full-refund guarantee, misrepresented key elements of Air AI's ability to deliver results to consumers, and failed to provide (or falsely represented) accurate financial disclosure documents in violation of the Business Opportunity Rule.

Tuesday, August 26, 2025

Bureau of Consumer Protection: Consumer Refunds and Advertising and Marketing

• In July, we recapped the FTC's settlement with Arise Virtual Solutions Inc., in which the company agreed to pay $7 million to end scrutiny over its alleged deceptive luring of consumers into joining its gig work platform. On Tuesday, the FTC announced that it has sent checks totaling more than $6.7 million to affected consumers.

Wednesday, August 27, 2025

Bureau of Consumer Protection: Telemarketing and Do Not Call

• The FTC announced increased fees for accessing the National Do Not Call registry in FY 2026. Beginning October 1, telemarketers will see a $2 per area code increase over current fees for full year access and $1 per area code for half year access. The maximum charge for all area codes to any one entity is up to $22,626 from the prior year $22,038. As before, the first five area codes are free and exemptions continue for certain organizations, such as charities.

Thursday, August 28, 2025

Bureau of Consumer Protection: Technology, Advertising and Marketing, Artificial Intelligence

• The FTC finalized a consent order with Workado, LLC, which requires the company to stop advertising the accuracy or efficacy of its AI content detection unless it has "competent and reliable evidence" to support its claims. Our attorneys provide an in-depth background on this issue in our May 7 client alert, highlighting the increased scrutiny on claims related to AI. In the order, Workado:
  • Is prohibited from making any representations about the effectiveness of any AI content detection product unless it is not misleading, and the company has competent and reliable evidence to support the claim at the time it is made;
  • Is required to retain evidence to support such efficacy claims;
  • Must email eligible consumers about the consent order and settlement with the Commission; and
  • Must submit compliance reports to the FTC one year after the order is issued and every year for the following three years.

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