FTC Adds Charges Against Auto Marketer For Deceptive Prize Mailers

Topics: Traffic Jam Events

FTC Adds Charges Against Auto Marketer For Deceptive “Prize” Mailers

Agency: Federal Trade Commission
Date: 13 August 2020

New administrative complaint includes prior charges of misleading COVID-19 claims

The Federal Trade Commission has issued an administrative complaint against a marketer, Traffic Jam Events, LLC, and its owner, David J. Jeansonne II, charging multiple counts of deceptive conduct. The administrative complaint mirrors a prior federal court complaint, which the Commission voluntarily dismissed to pursue a broader administrative proceeding.

The administrative complaint alleges that the respondents have deceived consumers with mailers supposedly directing them to obtain federal COVID-19 stimulus benefits. The complaint also alleges that, in addition to the misleading COVID-19 mailers, respondents sent flyers to consumers containing matching numbers indicating that consumers had won a valuable prize. Consumers were then told they had to go to a car dealership to “claim” the prize, but the small print on the back of the mailer revealed that there was only a 1-in-52,000 chance the consumer had actually won the prize specified.

In addition to FTC Act violations alleged related to the COVID-19 and prize mailers, the FTC’s complaint claims the respondents violated the Truth In Lending Act and Regulation Z for failing to clearly disclose required credit information in their advertising.

The Commission vote to issue the administrative complaint and dismiss the federal proceeding was 4-0-1, with Commissioner Rebecca Kelly Slaughter recorded as not participating.

NOTE: The Commission issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The issuance of the administrative complaint marks the beginning of a proceeding in which the allegations will be tried in a formal hearing before an administrative law judge.

The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.

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