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"
The FTC sent warning letters to 12 companies offering 'nudify' tools that generate nonconsensual intimate images, for failing to comply with the TAKE IT DOWN Act (TIDA) by not providing a mechanism for victims to request removal of such content. The letters urge immediate compliance with TIDA, which requires platforms to remove nonconsensual intimate images within 48 hours of a valid request. Noncompliant companies may face future legal action and civil penalties of up to $53,088 per violation.
The FTC began enforcing the TAKE IT DOWN Act on May 19, 2026, a law requiring covered platforms to establish a process for victims to request removal of nonconsensual intimate images and delete such content within 48 hours of a valid request. The agency launched a consumer complaint portal, issued compliance guidance for businesses and consumers, and sent reminder letters to major platforms including Meta, TikTok, and X about their obligations under the law. No specific penalties or enforcement actions against individual companies were announced in this release.
$6.5M
A federal court held Cliq Inc. and its executives Andrew Phillips and John Blaugrund in civil contempt for multiple violations of a 2015 FTC order requiring the payment processor to prevent enabling consumer fraud. The court found the defendants facilitated fraud by processing transactions for high-risk merchants, avoiding fraud monitoring, failing to conduct required underwriting, and ignoring chargeback thresholds. The court imposed $6.5 million in civil contempt sanctions against the defendants.
$795.8M
The FTC and State of Nevada settled charges with lead defendants of the IM Mastery Academy MLM scheme, including Chris and Isis Terry and their affiliated companies, over false earnings claims used to promote financial training programs and a multi-level marketing venture. The stipulated order imposes a $795.8 million judgment, with defendants surrendering nearly $90 million in assets including luxury real estate, vehicles, jewelry, and a yacht, totaling over $100 million with prior judgments from other involved defendants. The order also bans defendants from selling trading-training services, prohibits false earnings claims, and restricts deceptive practices including negative-option misrepresentations and telemarketing violations.
The FTC and State of Illinois, via the Department of Justice, filed a complaint against B.E.S.T. GDR LLC (d/b/a Premium Home Service) and its owner Yosef Bernath for creating thousands of fake home repair business listings with fabricated five-star reviews to deceive consumers. The defendants allegedly routed consumer calls to unqualified representatives, arranged for unlicensed technicians, and violated the FTC Act, Reviews and Testimonials Rule, Gramm-Leach-Bliley Act, and Illinois consumer protection laws. No monetary penalty has been imposed yet as the case is in initial filing stages.
Federal Trade Commission Chairman Andrew N. Ferguson sent letters to over a dozen major technology companies reminding them of their obligation to comply with the Take It Down Act (TIDA) by May 19, 2026. TIDA requires covered platforms to establish a process for victims, including children, to request removal of nonconsensual intimate images, with takedown of content and all identical copies required within 48 hours of a valid request. The FTC also issued supplemental guidance to help companies prepare for compliance and warned that it will monitor and enforce violations of the law.