Penalty Amount
$17,000,000
Consumer fraud enforcement action where the FTC settled with Xponential Fitness for violating the Franchise Rule by misrepresenting key information to franchisees, including time to open and costs. The settlement includes a $17 million monetary judgment for redress and prohibits future misrepresentations.
Xponential Fitness must pay $17 million in redress to franchisees, is prohibited from making misrepresentations to prospective franchisees, and must comply with the Franchise Rule by providing accurate and timely disclosure documents.
In-house legal teams at franchisors should review franchise agreement templates, Franchise Disclosure Document (FDD) preparation workflows, and vendor contracts with franchise marketing or sales platforms. Key clauses to audit include FDD delivery timelines (mandating at least 14 days between FDD receipt and agreement signing), representations regarding average studio opening timelines, disclosure clauses for executive litigation and bankruptcy history, and requirements to report terminated, cancelled, or non-renewed franchises with accurate contact information. Franchisee-facing agreements should also be reviewed for misrepresentations regarding costs, fees, and operational timelines to avoid deceptive practice allegations.
Entity
Xponential Fitness
Industry
OtherOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/03/ftc-secures-settlement-against-xponential-fitness-franchise-rule-violations
XPO StipOrder
https://www.ftc.gov/system/files/ftc_gov/pdf/XPO-StipOrder.pdf
XPO Complaint
https://www.ftc.gov/system/files/ftc_gov/pdf/XPO-Complaint.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Xponential Fitness"
"$17 million"
"Franchise Rule"
"Failed to provide accurate, complete, and timely Franchise Disclosure Documents"
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.