United States of America: Issued interim ruling in FTC lawsuit against Automators LLC et al. regarding possible violation of consumer protection regulations

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Description

Issued interim ruling in FTC lawsuit against Automators LLC et al. regarding possible violation of consumer protection regulations

On 11 August 2023, the U.S. District Court for the Southern District of California delivered an interim ruling in the FTC lawsuit against Roman Cresto, John Cresto, Andrew Chapman, and their companies providing AI- Tools. These entities stand accused of employing AI to mislead investors into a USD 22 million scheme via online stores on Amazon and Walmart. The court has temporarily suspended their operations after the FTC alleged that clients didn't see the promised earnings, and both Amazon and Walmart suspended stores linked to them. The FTC aims to permanently cease their operations, citing breaches of various laws, such as the FTC Act, the Business Opportunity Rule, and the Consumer Review Fairness Act. A preliminary injunction hearing is scheduled for 19 September 2023, signifying the commencement of legal proceedings.

Original source

Scope

Policy Area
Consumer protection
Policy Instrument
Fair marketing and advertising practice requirement
Regulated Economic Activity
ML and AI development, other service provider, technological consumer goods
Implementation Level
national
Government Branch
judiciary
Government Body
court

Complete timeline of this policy change

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2023-08-08
under deliberation

On 8 August 2023, the Federal Trade Commission (FTC) filed a complaint in the US District Court for…

2023-08-11
under investigation

On 11 August 2023, the U.S. District Court for the Southern District of California delivered an int…

2024-02-26
under investigation

On 26 February 2024, the Federal Trade Commission (FTC) announced a settlement regarding the public…