FTC adds charges against Trafffic Jam Events over deceptive COVID-19 stimulus and “prize” mailers

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FTC adds charges auto sales markets prize mailers

The Federal Trade Commission (FTC) is pursuing a broader administrative complaint against a marketing company and its owner for allegedly luring consumers to auto sales events using deceptive COVOD-19 stimulus relief and price mailers.

The FTC said it is now charging Traffic Jam Events, LLC and its owner David J. Jeansonne II with multiple counts of deceptive conduct.

In the administrative complaint, the Commission alleged that the respondents distributed deceptive advertisements and promotional materials including mailers that claimed to provide COVI-19 stimulus relief to consumers.

Allegations against Traffic am Events and its owner

Around March 2020, Traffic Jam Events and Jeansonne II allegedly started to deceptive marketing materials to lure consumers to go to dealerships. The ads claimed that COVID-19 stimulus relief is available at designated locations for a limited time. The mailers led consumers to believe that they could obtain financial assistance in person at the “relief headquarters,” which were actually auto sales events.