The Federal Trade Commission has charged five people with defrauding customers out of nearly $500 million through weight loss programs, colon cancer cleansing and penny auctions, The Associated Press reports.
Customers were lured to websites promoting risk-free trials of various products and programs but were subsequently charged for ongoing services that were not disclosed in the original offers, according to the FTC complaint filed in U.S. District Court in Seattle this week. Those included monthly or annual subscription fees and charges for products touted as bonuses.
Refunds promised to consumers were seldom given in full and often never given, the FTC said. Many products carried false heath claims and endorsements from celebrities such as Oprah Winfrey or Rachael Ray that were not real.
Combined, nearly $467 million was earned by the companies in four years.
The FTC complaint said the websites were operated by Jesse Willms, a 23-year-old businessman in Alberta, Canada, who blogs about his charitable activities and offers entrepreneurial advice. He has been honored for his charitable work by multiple organizations in Canada.
Messages left by The Associated Press for Willms with the company he lists as his current employer were not immediately returned. An attorney for Willms was not listed on the complaint.
