Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 31 MARCH 2022

Raging Mad: Subscription Program Provokes Ire Of Consumers, And The FTC

Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
Contributor
Frankfurt Kurnit Klein & Selz PC

Frankfurt Kurnit Klein & Selz PC

Founded more than 40 years ago as a boutique law firm servicing the entertainment and arts...

View firm profile
Explore more from Frankfurt Kurnit Klein & Selz PC

The FTC recently announced a settlement with the operators of RagingBull.com, an online stock trading site. This is a case about a company and its principals who allegedly preyed on retirees, ...

United StatesConsumer Protection
Terri Seligman
Terri Seligman
Author LinkedIn connections

The FTC recently announced a settlement with the operators of RagingBull.com, an online stock trading site.  This is a case about a company and its principals who allegedly preyed on retirees, older adults and immigrants during the pandemic, selling consumers bogus investment-related services that promised consistent profits from "secret trading techniques".  As set forth in the complaint, the defendants heavily marketed their products and program with advertising, affiliate marketing efforts and bogus testimonials with false earnings claims.  In addition, the company purportedly locked consumers into hard-to-cancel subscription plans for the company's services. The settlement requires the company to pay nearly $2.5 million and to clean up its practices, both in how it makes earning claims and how it runs subscription programs. 

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

www.fkks.com

This post first appeared in Frankfurt Kurnit's Focus on the Data blog (www.focusonthedata.com). It provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

Originally published by the New York Legal Ethics Reporter

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

New York City’s Click-to-Cancel Rule: What Businesses Need To Know

New York City has enacted the nation's first municipal click-to-cancel rule, requiring businesses to provide clear disclosures, simple cancellation processes, and advance renewal notices for subscription services. With approximately 30 states already implementing similar regulations and the federal landscape in flux following the FTC's vacated rule, companies now face an increasingly complex patchwork of compliance obligations. The rule takes effect October 1, 2026, and imposes penalties ranging from $525 t
United StatesConsumer Protection
Skadden, Arps, Slate, Meagher & Flom LLP
Skadden, Arps, Slate, Meagher & Flom LLP
Article

FCC Replaces TCPA “Revoke All” Rule: New Category-Specific Opt-Out Rules For Robocalls And Robotexts

The Federal Communications Commission has fundamentally altered how businesses must handle consumer opt-out requests under the Telephone Consumer Protection Act, replacing the broad "revoke all" mandate with a more nuanced, category-specific approach for informational messages. This regulatory shift allows companies to maintain separate consent tracks for different types of non-marketing communications while preserving stricter opt-out requirements for telemarketing messages. The Updated Order introduces ne
United StatesConsumer Protection
Bass, Berry & Sims PLC
Bass, Berry & Sims PLC
Article

Amway To Pay $225 Million Over Alleged False Earnings Claims And Fabricated Sales

The FTC and Washington state secured a record $225 million settlement from Amway and affiliated groups over allegations they misled recruits about earnings potential while pressuring them to buy products with little retail opportunity. The complaint reveals that over three-quarters of U.S. product volume was sold to IBOs themselves rather than retail customers, with fabricated sales reporting masking the recruitment-driven model. The settlement's injunctive provisions establish new standards for earnings cl
United StatesConsumer Protection
Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
Article

FTC Asks Whether Platform Ad Tools Fuel Impersonation Scams

The Federal Trade Commission is exploring whether digital platforms should bear greater responsibility for preventing impersonation ads that falsely pose as legitimate businesses or government agencies. Through an Advance Notice of Proposed Rulemaking, the agency seeks public input on potential amendments to its existing Impersonation Rule, examining how ad-optimization tools and platform practices...
United StatesConsumer Protection
Greenberg Traurig
Greenberg Traurig
Article

CONGRESS FIRES BACK?: New Bill Seeks To Revive Written Consent Rule Under TCPA

Congress has introduced the Stop Spam Calls Act, directing the FCC to revise the definition of prior express written consent under the TCPA to require one-to-one seller consent and logical relevance between sellers and website content. This legislative move comes as the Fifth Circuit questions whether written consent is even required under the TCPA, creating a fascinating tension between congressional intent and judicial interpretation that could reshape telemarketing compliance.
United StatesConsumer Protection
Troutman Amin LLP
Troutman Amin LLP
Article

The Coming State-Law Litigation Wave Of 2026-27: “Subscription Trap” Class Actions

State-law class actions targeting automatic renewal and subscription practices are accelerating, creating significant litigation risk for companies that rely on recurring revenue models. Recent settlements demonstrate that even technical compliance failures can lead to seven-figure exposure, with California, Illinois, and Virginia statutes driving the most aggressive litigation.
United StatesConsumer Protection
Benesch, Friedlander, Coplan & Aronoff LLP
Benesch, Friedlander, Coplan & Aronoff LLP
Article

FTC Announces Settlement And Articulates Knowledge Standard For Payment-Processor Liability

The Federal Trade Commission has reached a settlement with a payment processor and four affiliated entities over allegations that they knowingly facilitated deceptive merchants, including foreign tech-support operations, in accessing the U.S. card-payment system. The case resulted in a $4.85 million monetary judgment and features a significant Joint Statement from FTC leadership establishing a knowledge standard for unfair payment-processing claims under Section 5.
United StatesConsumer Protection
Greenberg Traurig
Greenberg Traurig
Article

Amway To Pay $225 Million Over Alleged False Earnings Claims And Fabricated Sales

The FTC and Washington state secured a record $225 million settlement from Amway and affiliated groups over allegations they misled recruits about earnings potential while pressuring them to buy products with little retail opportunity. The complaint reveals that over three-quarters of U.S. product volume was sold to IBOs themselves rather than retail customers, with fabricated sales reporting masking the recruitment-driven model. The settlement's injunctive provisions establish new standards for earnings cl
United StatesConsumer Protection
Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
Article

UMG v. DistroKid: When AI Becomes A Consumer Protection Issue

Universal Music Group's lawsuit against DistroKid raises a critical question about AI disclosure in consumer markets: when does the use of artificial intelligence become material information that must be disclosed to consumers? The case centers on allegations that DistroKid distributed mass-generated AI music while creating the impression it was created by legitimate human artists, potentially violating existing consumer protection laws even without specific AI disclosure requirements.
United StatesIntellectual Property
Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
Article

Selling Company Data For AI Training: What To Know Before You Say Yes

AI developers are seeking new sources of training data, including internal operational data like Slack messages, emails, and company documents. Companies are now receiving offers to sell their workplace data, but such transactions raise complex legal questions around data rights, privacy commitments, employee protections, and long-term competitive risks that require careful evaluation before proceeding.
United StatesPrivacy
Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
Article

FTC Issues Guidance On "Price Transparency" For Auto Dealers

The Federal Trade Commission has issued new guidance requiring auto dealers to display transparent, all-inclusive pricing in their advertisements, mandating that the advertised price must be the actual amount any consumer can pay, excluding only government-required charges. The comprehensive FAQ addresses critical questions about how dealers should handle document fees, online pricing displays, representative photos, and responsibilities shared between dealers, third-party advertisers, and OEMs.
United StatesConsumer Protection
Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
Article

Not Just A Selfie: The New BIPA Theory Aimed At Generative AI

Illinois resident Scott Wilson has filed a putative class action against xAI, alleging that its Grok chatbot violates the Biometric Information Privacy Act by capturing facial geometry scans when users upload selfies for analysis or editing. This case represents a significant expansion of BIPA litigation into the generative AI space, where multimodal models routinely process human faces as ordinary inputs without explicit biometric collection disclosures.
United StatesPrivacy
Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
Article

Hasan Piker Sues Scott Jennings For $72.5 Million

A high-profile defamation lawsuit tests the boundaries of free speech protections when political commentators manipulate video clips and fabricate quotes. As AI technology makes it increasingly easy to doctor content, this case could establish crucial precedent for how courts handle deliberately altered quotations and deepfake-style media manipulation in the digital age.
United StatesMedia, Telecoms, IT, Entertainment
Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
Article

California Legislation: End-Of-Session Check-In

California's legislature has sent a comprehensive package of privacy, AI, and advertising bills to Governor Newsom's desk, with decisions due by September 30, 2026. The legislation addresses sensitive personal information protections, data broker obligations, AI-powered chatbot regulations, and digital replica rights, potentially reshaping how businesses handle consumer data and automated decision-making systems. Will these bills become law and set new national standards for technology regulation?
United StatesPrivacy
Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC