
FTC Files for Injunction as IML Shuts Down
Agency worries MLM defendants are dissipating assets.
In August 2018, a class-action lawsuit was filed against Cumulus Media (a radio stations operator) for allegedly misleading listeners about their chances of winning a $1,000 Giveaway sweepstakes by making them believe that only one radio station is involved and that their chances of winning are greater than they really are. Specifically, the radio stations announce keywords that listeners use to enter sweepstakes and each sweepstakes has only one winner. Plaintiffs claim that the radio stations do not disclose that keywords are announced on multiple stations and, as a result, the odds of winning are a fraction of what they appear to be. (Doyle et al v. Cumulus Media Inc. et al, Case No. 18-cv-4667, E.D.N.Y.)
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Agency worries MLM defendants are dissipating assets.
Patrick Coffee, The Wall Street Journal
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