Moreover, the defendants lied to consumers that Willow Curve comes with a “risk-free money back” guarantee. Consumers had to pay shipping and handling costs and often did not receive a refund or had to wait more than a year to get their money back.
According to the SEC, Physicians Technology, Willow Labs, Sutton, and Shapiro violated Section 5(a) of the FTC Act, 15 U.S.C. § 45(a) by engaging in deceptive and unfair practices and disseminating false advertising.
According to the FTC, the proposed settlement order included prohibiting the defendants from making deceptive claims, deceptive claims about refunds, and native advertising practices.
The order also prohibits the defendants from providing other parties the means to engage in similar illegal conduct. It also imposes a $22 million judgment, which will be partially suspended because of their inability to pay. The total monetary judgment will only be suspended after Shapiro and Sutton each pay $200,000.