Penalty Amount
$48,597,538
Consumer fraud case where the FTC settled with Growth Cave defendants for operating a deceptive business opportunity and credit repair scheme that cost consumers nearly $50 million. The settlement permanently bans them from such activities, requires asset liquidation to pay a $48.6 million judgment, and prohibits misleading earnings claims and AI use.
The settlement includes permanent bans on marketing business opportunities and credit repair programs, prohibitions on misleading earnings claims and AI use, a $48.6 million judgment partially satisfied through asset liquidation (including a house and luxury vehicles), and funds directed for consumer redress.
In-house legal teams should review all vendor, customer, and partnership agreements where the company sells or markets business opportunities, credit repair services, or any income-generating programs. Specifically scrutinize clauses governing earnings representations, marketing and advertising commitments, use of AI in customer communications or content creation, and dispute resolution/judgment enforcement provisions. Given the permanent ban and $48.6 million judgment, contracts may need amendments to include explicit disclaimers about earnings potential, prohibit the use of AI for deceptive claims, and incorporate compliance mechanisms aligned with the settlement's prohibitions against misleading conduct. Asset liquidation terms in any related settlement or payment plans should also be assessed for enforceability.
Entity
Growth Cave, LLC
Also known as: Growth Cave
Industry
Financial ServicesOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/01/ftc-secures-settlement-banning-growth-cave-defendants-marketing-selling-business-opportunities
GrowthCave FinalOrder
https://www.ftc.gov/system/files/ftc_gov/pdf/GrowthCave-FinalOrder.pdf
Batte FinalOrder
https://www.ftc.gov/system/files/ftc_gov/pdf/Batte-FinalOrder.pdf
StipOrder Marksberry
https://www.ftc.gov/system/files/ftc_gov/pdf/StipOrder-Marksberry.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Growth Cave"
"$48,597,538"
"deceptive business opportunity, credit repair scheme"
$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
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$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
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