Recently, the Federal Trade Commission (FTC) brought suit against two Florida-based weight loss companies, Tachht, Inc. and Teqqi, LLC. The complaint alleges that both companies, which share common ownership, sent unsolicited commercial emails to consumers through hacked email accounts that made the consumers believe the email was sent from family or friends. The FTC claims that the defendants’ emails violated several sections of the CAN-SPAM Act by using inaccurate email heading information, failing to include opt-out mechanisms in the emails, and failing to include a valid physical postal address of the sender. Moreover, the complaint also alleges violations under the FTC Act for consumer abuse and deceptive trade practices. Specifically, the FTC cites to emails where the defendants falsely claimed celebrity endorsements and made unverified claims regarding the efficacy of their product. In its complaint, the FTC is asking for an injunction to stop the companies from further violations of federal law about false commercial emails, as well as refunds to customers.
Tip: This lawsuit serves as a reminder that the FTC continues to review company practices not only for violations of the FTC Act, but of CAN-SPAM as well.