The FTC filed a complaint and obtained a temporary restraining order against six defendants operating a deceptive health care scheme that impersonated government and insurance carriers to sell fake comprehensive health plans. The defendants allegedly charged consumers without express informed consent, failed to disclose material terms including cancellation processes, and misled consumers into paying for inadequate coverage that left many with substantial medical debt. The FTC seeks refunds for affected consumers and alleges violations of the FTC Act, Telemarketing Sales Rule, Impersonation Rule, and Gramm-Leach-Bliley Act.
The U.S. District Court for the Southern District of Florida issued a temporary restraining order halting the defendants' deceptive operations. The FTC's complaint seeks refunds for consumers harmed by the scheme, and requests injunctive relief to permanently stop the unlawful practices.
In-house legal teams should review customer agreements, vendor contracts with telemarketing service providers, and insurance-related service agreements. Key clauses to audit include consent provisions to ensure express, informed consent for all charges (especially recurring payments), negative option and automatic renewal clauses requiring clear disclosure of cancellation steps, material terms disclosure sections, telemarketing compliance representations and warranties, and data protection clauses for health and financial consumer information. Agreements should also prohibit impersonation of government entities or third-party carriers, and include breach notification requirements for unauthorized use of consumer data.
Entity
Innovative Partners, LP; American Collective, LP; Papyrus Green Investments LLC; Health Plan Administrators, LLC; Amani Ibrahim Shokry; Ahmed Ibrihim Shokry
Industry
InsuranceOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/04/ftc-sues-stop-deceptive-health-care-scheme
2423043innovativepartnerstro
https://www.ftc.gov/system/files/ftc_gov/pdf/2423043innovativepartnerstro.pdf
2423043innovativepartnerscomplaint
https://www.ftc.gov/system/files/ftc_gov/pdf/2423043innovativepartnerscomplaint.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"April 22, 2026"
"The defendants include Innovative Partners, LP, which does business as Innovative Health Plan or Healthcare Plan, and its Chief Technology Officer Amani Ibrahim Shokry; American Collective, LP, which does business as ACLP Health Plan; Papyrus Green Investments LLC; and their owner Ahmed Ibrihim Shokry, as well as Health Plan Administrators, LLC."
"the defendants violated the FTC Act, the Telemarketing Sales Rule, the Impersonation Rule, and the Gramm-Leach-Bliley Act"
"unfairly charge consumers without their express, informed consent"
"fail to disclose material terms and conditions of their negative option feature, specifically the steps consumers must take to cancel the monthly recurring payments"
"the court entered a temporary restraining order against the defendants"
The FTC issued an advance notice of proposed rulemaking seeking public comment on whether ad-optimization tools offered by online platforms may help scammers impersonate businesses and government agencies. This is a proposed regulatory inquiry, not an enforcement action against a named company; no penalty or remedy was imposed.
$2.5B
A federal court approved a revised order in the FTC's Amazon Prime case under which Amazon will accelerate and expand redress payments under the September 2025 $2.5 billion settlement, which resolved allegations that Amazon enrolled millions of consumers in Prime subscriptions without their consent and knowingly made cancellation difficult. More consumers now qualify for refunds, the maximum payment cap rises from $51 to $200, and all future payments will be distributed automatically starting October 1, 2026, with potential supplemental $149 payments by April 2027. Amazon has already issued more than $845 million in redress payments as of September 2026.
$225.0M
The FTC and the state of Washington filed a joint complaint and proposed stipulated order requiring Amway Corp. and two affiliates—World Wide Group, L.L.C. (WWG) and Leadership Team Development Inc. (LTD)—to pay a $225 million judgment, the largest monetary recovery ever obtained from an MLM in an FTC action, over allegations that they used deceptive earnings claims and unfair tactics to recruit Independent Business Owners. The complaint alleges the companies falsely promised substantial income and recruitment success, pressured IBOs to buy products they could not resell, and instructed IBOs to falsely report sales. Nearly all of the judgment will be used as redress for IBOs who lost money, and the proposed order imposes structural reforms including a 70% resale requirement, independent audits of sales records, and a ban on approved providers charging new IBOs for first-year training.
$100.0M
FleetCor Technologies Inc. (now Corpay Inc.) and its CEO Ronald Clarke agreed to pay $100 million to settle an FTC administrative action alleging the company charged small business customers hidden and unauthorized fees for fuel cards and misrepresented gas savings, fraud-control features, and fees. A federal district court granted the FTC summary judgment on all counts in 2023, and a federal appeals court upheld that judgment and the permanent injunction in 2026. The settlement funds will be used to provide redress to harmed business customers.
FTC staff published FAQs on price transparency to help the automobile industry comply with the FTC Act, reiterating that an advertised vehicle price must be the actual price any consumer can pay, excluding only government-required charges. The guidance follows warning letters the FTC sent to 97 auto dealership groups earlier in 2026 and signals continued litigation against dealers that advertise one price but charge more through undisclosed fees. No specific entity was charged and no penalty was imposed.
The FTC rescinded its 2021 Policy Statement on Breaches by Health Apps and Other Connected Devices, which had purported to apply the Health Breach Notification Rule to health apps and connected devices that collect consumer health information. The rescission follows the Commission's 2024 update to the Health Breach Notification Rule, which already covers health apps and connected devices like fitness trackers, and implements an executive order directing agencies to eliminate obsolete guidance documents. No company was charged or penalized; this is a deregulatory action.