Penalty Amount
$8,000,000
The FTC and State of Nevada settled charges against the operators of American Tax Service for impersonating federal and state government tax authorities and making false promises of tax debt relief. The defendants will surrender over $8 million in cash and assets and are banned from debt relief services, tax preparation, telemarketing, and impersonation.
The defendants must surrender over $8 million in cash and additional assets to be used for consumer refunds. They are permanently banned from debt relief services, tax preparation services, telemarketing, and impersonation of individuals, governments, or businesses. A $77.7 million judgment is suspended based on inability to pay.
In-house legal teams should review vendor agreements with tax relief or debt settlement companies to ensure compliance with FTC rules on telemarketing, deceptive advertising, and impersonation. Key clauses to examine include representations and warranties regarding compliance with the FTC Act and Telemarketing Sales Rule, indemnification for deceptive practices, and termination rights for regulatory violations. Additionally, contracts should prohibit vendors from impersonating government entities and require clear disclosures about services.
Entity
American Tax Service (ATS)
Industry
OtherOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/06/ftc-nevada-will-require-tax-relief-scammers-pay-cash-turn-over-assets-worth-nearly-10-million-settle
2523026atstro
https://www.ftc.gov/system/files/ftc_gov/pdf/2523026atstro.pdf
ATS StipulatedOrder
https://www.ftc.gov/system/files/ftc_gov/pdf/ATS-StipulatedOrder.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"operators of American Tax Service (ATS)"
"will surrender over $8 million in cash"
"imposes a judgment in the amount of $77.7 million"
"impersonating federal and state government tax authorities and promising tax debt relief"
"Federal Trade Commission and State of Nevada"
$750K
The FTC finalized an order against Vanilla Chip LLC (doing business as TruHeight) and its principals for deceptively advertising height-enhancing supplements for children and teens without scientific evidence. The company also used fake reviews and incentivized 5-star ratings. The order requires a $750,000 payment and prohibits false health claims and deceptive review practices.
$2.3M
The FTC alleged that RentGrow, a tenant screening company, violated the Fair Credit Reporting Act (FCRA) by failing to use reasonable procedures to ensure the accuracy of its reports, including by reporting duplicate records and failing to disclose data sources. RentGrow agreed to pay a $2.25 million penalty and is prohibited from further FCRA violations and from misrepresenting dispute outcomes.
The FTC and New York Attorney General took action against Handy Technologies for deceptive earnings claims and failure to disclose fees and fines that led to millions of dollars being withheld from workers' wages. The FTC is sending over $2.7 million in refunds to 62,893 affected consumers.
$35.0M
The FTC alleged that Hopper, a travel booking app, charged consumers hidden and pre-selected fees (Tip and VIP Support) without their consent, misrepresented the benefits of VIP Support and Price Freeze services, and failed to clearly disclose total prices. Hopper agreed to pay $35 million for consumer redress and is prohibited from misrepresenting fees under a proposed order.
$1.5M
The FTC finalized a settlement with Publishing.com LLC and its principals for misleading consumers about potential earnings from self-publishing products. The company will pay $1.5 million and is prohibited from making unsubstantiated earnings claims, failing to disclose refund terms, and misrepresenting endorsements and reviews.
The FTC is seeking public comment on a proposed policy statement addressing concerns that AI companies may be manipulating AI system outputs contrary to consumer expectations for objectivity and accuracy. The statement explains that such conduct could be considered deceptive under Section 5 of the FTC Act. The public comment period runs until July 31, 2026.