The Federal Trade Commission (FTC) filed a lawsuit against a marketing company in Louisiana and its owner for allegedly using deceptive COVID-19 stimulus mailers to lure consumers to car sales events.
In the complaint, the FTC named the defendants as Traffic Jam Events, LLC, and its owner David J. Jeansonne II.
The defendants allegedly violated the FTC Act 15 U.S.C. § 53(b), by sending deceptive marketing materials to consumers and taking advantage of the COVID-19 stimulus relief. Millions of Americans have been waiting for the stimulus relief, which the federal government is providing under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
The law authorizes a $1,200 stimulus payment to individuals, $2,400 to married couples plus $500 per child. Additionally, it provides deferrals on payments for federally-backed mortgages and student loans. It does not provide relief for auto loans or auto-related financing.