FTC obtains court order to stop 2 California companies from alleged deceptive marketing

By Marian Johns | Jul 10, 2018

WASHINGTON, D.C. —  The federal government has obtained a court order that halts the alleged deceptive marketing and billing of two California companies that sell skincare products, resolving resolves charges against dating back to June 2015.

The Federal Trade Commission (FTC) recently announced the court order it received against Alan Argaman and Secured Merchants Inc., two remaining marketers out of a total of 32 defendants that sold AuraVie, Dellure, LeOR Skincare and Miracle Face Kit brands. 

According to the FTC, the defendants used false "risk-free trials" to sell the products and gained consumer credit and debit information for "shipping fees" and used the information to bill monthly charges of up to $97.88 to the consumer's credit cards for unordered products. 

The defendants were charged with violating the FTC Act, the Restore Online Shoppers' Confidence Act as well as the Electronic Fund Transfer Act. 

The court order permanently bars the defendants from further deceptive practices and imposes a $320,665.89 judgment that was suspended due to their inability to pay unless the court finds that their finances were misrepresented. 

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