Production Media Company
The FTC alleged that Production Media Company and its co-defendants deceptively sold exclusive advertising placements to small businesses and misrepresented when ads would be printed and distributed. A stipulated order barred the conduct and required $100,000.
Resolved. Refunded, settled, ceased operating, or the claim did not hold up. Kept for the record.
Identity
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- Registrations
- FTC v. Production Media Company (FTC case 182-3032, 2020)
- Locations
- Oregon
- Jurisdictions
- United States (federal)
Stipulated order barred deceptive advertising sales
The FTC alleged that Oregon based Production Media Company, The Ferraro Group Corp, and owner Jennifer Ferraro deceptively sold advertising placements to small businesses nationwide. Since at least October 2014, the defendants solicited placements by telephone and represented that, for a relatively small fee, an advertisement would appear in folders used by real estate offices and schools. They said the folders could reach hundreds or thousands of prospective customers.
According to the complaint, small businesses were led to believe that folders would be printed shortly and that each advertisement would be exclusive to a folder. The FTC alleged that, in many cases, a folder was never printed or was printed only after a complaint to the Better Business Bureau or a state Attorney General. Printed folders often contained advertisements from more than one competitor. The defendants also allegedly refused refunds by relying on reservation form fine print that contradicted the telephone pitch.
The stipulated court order bars the deceptive conduct. It imposed a $22.2 million judgment that would be partially suspended if the defendants paid the FTC $100,000 within one year or paid at least that amount toward federal tax liabilities.
What is not established
The documents characterize the conduct as FTC allegations and do not state that the defendants admitted them. They do not quantify losses suffered by the small businesses.
Sources
Every claim above rests on one of these. Open them and check.
- Enforcement action February 11, 2020
- Enforcement action February 11, 2020
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First recorded February 11, 2020 · Last updated February 11, 2020