FTC, Tennessee Attorney General Permanently Halt Medical Discount Scheme
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|Source:||Targeted News Service|
Telemarketers who peddled medical "insurance" that was actually a bogus medical discount plan have agreed to settle charges by the FTC and Attorney General of
According to the FTC, instead of medical insurance, what the defendants provided was membership in a benefits association that purportedly offered access to various health care and non-health care-related discounts, but consumers were unable to realize any significant savings or medical discounts. Unlike health insurance, the memberships did not pay for a significant share of consumers' health care expenses. Consumers who tried to cancel their memberships were often ignored.
The FTC also alleged that the defendants called consumers on the Do-Not-Call Registry and used illegal robocalls. The complaint alleged that the defendants violated the Federal Trade Commission Act, the Tennessee Consumer Protection Act, and the FTC's Telemarketing Sales Rule.
The settlement order bans the defendants from selling or promoting any health care-related benefits or discount programs or assisting others who do so. It bars them from misrepresenting the benefits, costs, performance, restrictions or cancellation policy of any good or service that they provide, and from misrepresenting that they are affiliated with, endorsed or approved by or affiliated with the federal government or a state government. They also are prohibited from collecting money from their former customers and violating the Telemarketing Sales Rule. Finally, the order imposes a judgment of
The Commission vote authorizing the stipulated final orders settling the court actions against
The FTC wishes to thank the
NOTE: Stipulated final orders are for settlement purposes only and do not constitute an admission by the defendants of a law violation. Stipulated final orders have the force of law when signed by the judge.
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