WASHINGTON (Legal Newsline) — Jessica Rich, director of the
Federal Trade Commission’s (FTC) Bureau of Consumer Protection, has released
comments on the U.S. Court of Appeals for the First Circuit's decision to uphold
an FTC summary decision against John Fanning, creator of Jerk.com.
“This ruling makes it clear that the defendant’s
misrepresentations in this case were harmful to consumers.” Rich said. “We are
pleased with the ruling, and will closely monitor the defendant’s compliance
with the order, as we do in all our cases.”
In the original complaint, the FTC alleged Fanning
deceived consumers about the information on his Jerk.com site and the benefits
of site membership. The court affirmed this finding. It also upheld most of the
FTC’s remedial order that bans Fanning from making any further deceptive
statements. The order also requires him to maintain advertising and marketing
records and notify the FTC of any issues.
The one part of the order where the court sided against the
FTC on was a requirement that Fanning provide the FTC updates on his employment
status for jobs unrelated to his alleged unlawful activity.
The FTC first filed its suit against Fanning and Jerk.com in