FTC sues online sellers of PPE that falsely promise fast deliveries

IIG Managing Partner pleads guilty to Ponzi-like scheme

The Federal Trade Commission (FTC) filed charges against three online sellers of face masks and other personal protective equipment (PPE) for making false promises of fast deliveries to consumers amid the COVID-19 pandemic.

In the lawsuits, the FTC alleged that QYK Brands, doing business as Glowyy; Zaappaaz Inc, doing business as wrist-band.com; and American Screening LLC, and its operators violated the Commissions Mail, Internet, and Telephone Order Rule.

Under the rule, companies are required to notify consumers about any shipping delays. The notifications must be in a timely manner. The rule also requires companies to give consumers the chance to cancel their orders and receive immediate refunds.

According to the FTC, the defendants failed to comply with the requirements of the rule. In many instances, these online sellers failed to deliver the face masks or other PPE ordered by consumers. They also told consumers that refunds were not available. In some instances, the defendants promised refunds but never provided them to consumers.