Auto Marketing Company Banned from Industry Under FTC Order
A marketing services company and its owner will be banned from the auto industry under an Order issued by the Federal Trade Commission after the Commission found that they illegally misled consumers to believe their websites were affiliated with a government stimulus program and sent consumers deceptive mailings about prizes they had supposedly won.
In an opinion and order issued in October, the Commission ruled that Traffic Jam Events, Inc. and its owner, David J. Jeansonne, II, violated both the FTC Act and the Truth in Lending Act (TILA). The Commission concluded the company’s practices were deceptive and unfair to consumers in multiple ways.
The Commission found that the company sent numerous misleading mailings to entice consumers to auto sales sites by suggesting that these sites were affiliated with a government COVID-19 stimulus program when in fact the sales were not part of any such program. The mailers included lines like “IMPORTANT COVID-19 ECONOMIC STIMULUS DOCUMENTS ENCLOSED,” displayed the likeness of the Great Seal of the United States and contained a mock check, labeled “Stimulus Relief Program.”
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