
FTC Files for Injunction as IML Shuts Down
Agency worries MLM defendants are dissipating assets.
June 2013: A federal judge granted final approval of a settlement agreement. According to its terms, class members may receive a cash refund in an amount that depends on the number of claims filed but is estimated to be between $10 and $20. In addition, the company agreed to change the marketing for the heating pads to warn consumers about unsafe uses.
2010: A class-action lawsuit was filed against Kaz for allegedly deceptively labeling and advertising its electronic heating pads by not telling consumers that the pads could burn them if used in certain ways. (Beck-Ellman et al v. Kaz USA Inc., Case No. 10-cv-2134, S. D. CA.)
Agency worries MLM defendants are dissipating assets.
Patrick Coffee, The Wall Street Journal
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