According to a Press release released last Friday, the Federal Trade Commission (FTC) has secured a victory in the lawsuit against On Point Global LLC and its executives. His triumph will make $102 million in refunds available to consumers who were harmed by a wide-ranging scheme that tricked people into handing over money or personal information to bogus government website operators.
The lawsuit dates from December 2019 when the FTC for follow-up On Point for operating hundreds of websites claiming to offer quick and easy solutions for services such as renewing driver’s licenses or determining eligibility for federal food stamp programs with names such as DMV.com or floridadriverslicense.org.
On websites where consumers paid for supposed services, they received, at most, a document containing publicly available information, such as how to apply for a driver’s license. On other sites claiming to help people determine eligibility for government benefits, consumers were required to submit sensitive personal information and were then inundated with unwanted business and marketing contacts after their details were sold “to a long list of shady traders and brokers”.
In his movement for a temporary restraining order, the FTC noted that thousands of On Point customers have complained and many more have asked their banks to reverse the fraudulent charges. With its victory at trial, the FTC obtained a court order mandating the refund process.
The press release also noted that a principal and On Point Global defendant in the case, Burton Katz, was found in contempt of court for violating a 2014 order prohibiting him from abusing the law on consumer protection.
Previously, Katz had come under scrutiny “for placing millions of dollars in unwanted charges on consumers’ mobile phone bills using spam text messages offering ‘free’ gift cards.” Last August, the court agreed to issue a contempt order against him and awarded monetary relief to the FTC.