Additionally, the Commission alleged that SuperGoodDeals and Lipsitz were selling counterfeit products through their website.
The defendants violated Section 5(a) of the FTC Act,15 U.S.C. § 45(a), which prohibits unfair or deceptive business practices. They also violated the Mail, Internet, or Telephone Order Merchandise Rule (MITOR), according to the Commission.
In a statement, FTC Consumer Protection Bureau Director Andrew Smith said, “Unscrupulous merchants are taking advantage of consumers in their hour of need by not delivering goods—including masks and other personal protective equipment—as promised, and failing to provide required refunds. The FTC will not tolerate this, and we are working closely with criminal authorities to put a stop to it.”
Separately, the U.S. Attorney’s Office for the Eastern District of New York filed a criminal complaint against Lipsitz for allegedly violating the Defense Production Act and defrauding consumers.
U.S. Attorney Richard Donoghue said, “The defendant allegedly took advantage of the pandemic and the public’s urgent need for life-saving PPE to enrich himself illegally. Our Office and the Department’s COVID-19 Hoarding and Price Gouging Task Force will continue working tirelessly to put an end to such conduct.”
