WASHINGTON, D.C. — The U.S. Federal Trade Commission's (FTC) allegations against Apex Capital Group, LLC of deceptive marketing for online products have resulted in a California U.S. district court granting a motion to temporary ban the company's operation.
According to the FTC, Apex ran an "Internet marketing scam" while marketing personal care and dietary supplement items as a "free trial" with only shipping and handle charges. The company then charged customers full price for the items and enrolled them in "negative option continuity plans" without customer consent and kept charging $90 each month, the FTC said. Apex's "material terms," when listed at all, were hidden in small print or on separate webpages, according to the FTC.
The FTC also alleges that Apex used "shell companies and straw owners" in order to get merchant accounts which gave them the ability to accept customer's credit and debt card payments.
The FTC is charging Apex with violating Section 5 of the FTC Act, the Restore Online Shoppers' Confidence Act (ROSCA) and the Electronic Fund Transfer Act (EFTA).