FTC alleges group of marketers duped consumers out of $40 million

By Mark Iandolo | Aug 23, 2017

WASHINGTON (Legal Newsline) — The Federal Trade Commission (FTC) announced Aug. 16 that it has charged a group of marketers with debiting more than $40 million from consumer bank accounts without authorization by the consumers.

According to the FTC, the defendants enrolled consumers in three online discount clubs without the consumers’ consent and then charged them.

The defendants are EDP, Dale Paul Cleveland, William Wilson, Keith Merrill, clickXchange Media LLC, Platinum Online Group LLC, doing business as Premier Membership Clubs, Hornbeam, Cardinal Points Holding LLC, Cardinal Points Management LLC, doing business as Clear Compass Digital Group, Gyroscope Management Holdings LLC, Jerry L. Robinson, Earl G. Robinson, James McCarter, Mark Ward, iStream Financial Services Inc., Kris Axberg, Richard Joachim, and Chet Andrews.

The FTC charged all defendants with violating the FTC Act. Additionally, the agency said the EDP and Hornbeam defendants violated the Restore Online Shoppers’ Confidence Act. All defendants, other than Mark Ward, were also charged with violating the Telemarketing Sales Rule.

The commission voted 2-0 to authorize the staff to file the complaint, which was filed in U.S. District Court for the Northern District of Georgia Atlanta Division.

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