FTC files suit over deceptive COVID-19 stimulus auto sales mailers

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Deceptive covid-19 stimulus mailer
The envelope used by the defendants to lure consumers to auto sales events Image Source: FTC

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.

[pdf-embedder url=”https://usaherald.com/wp-content/uploads/2020/06/traffic_jam_events_complaint.pdf”]

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.