The Federal Trade Commission settled yesterday with two participants in a marketing operation the agency charged with violating the CAN-SPAM Act by making deceptive claims in unsolicited e-mails for fuel-saving products.
Net Marketing Group, Arnaudville, LA, and Diverse Marketing Group, Leesburg, FL, and their principals agreed to avoid violations of the FTC Act and CAN-SPAM Act in the future and cease making deceptive claims. According to the FTC, the companies made false claims about Fuel MAX and Super FuelMax.
The e-mailers claimed the products could increase gas mileage, reduce emissions, add horsepower to their car engine and save on fuel costs, the FTC said. The products do none of those things, according to the FTC.
The companies used unsolicited e-mails to draw consumers to a Web site to buy the products, the FTC said. The e-mails used spoofed originating addresses and failed to include a valid physical mail address, both violations of CAN-SPAM, according to the FTC.
Under the settlement, a $292,000 penalty against Diverse Marketing Group and a $9,000 penalty against Net Marketing Group were suspended. However, the FTC continues litigation against another defendant in the case, International Research and Development, San Diego.