Federal Regulatory Agencies
Here's a look at documents from federal regulatory agencies
Featured Stories
SEC Obtains Final Consent Judgment as to Investment Adviser for Allegedly Operating Ponzi-like Offering Fraud
WASHINGTON, April 28 -- The Securities and Exchange Commission issued the following litigation release (No. 20-civ-9199-JGLC; S.D.N.Y. filed Nov. 3, 2020) involving an investment adviser for allegedly operating a Ponzi-like offering fraud:
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On April 15, 2026, the United States District Court for the Southern District of New York entered a final consent judgment against Terrence Chalk, of Passaic, New Jersey and Orlando, Florida, whom the SEC previously charged with operating a Ponzi-like offering fraud.
The SEC's complaint, filed on November 3, 2020, alleged that Chalk--a convicted felon
... Show Full Article
WASHINGTON, April 28 -- The Securities and Exchange Commission issued the following litigation release (No. 20-civ-9199-JGLC; S.D.N.Y. filed Nov. 3, 2020) involving an investment adviser for allegedly operating a Ponzi-like offering fraud:
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On April 15, 2026, the United States District Court for the Southern District of New York entered a final consent judgment against Terrence Chalk, of Passaic, New Jersey and Orlando, Florida, whom the SEC previously charged with operating a Ponzi-like offering fraud.
The SEC's complaint, filed on November 3, 2020, alleged that Chalk--a convicted felonwho held himself out to be an investment adviser--conducted a fraudulent scheme in which he recommended, offered, and sold securities related to investments in a fictitious investment fund that he called the "Chairman's Fund." The complaint further alleged that Chalk used the alias "Dr. Terrence Cash" in an apparent effort to conceal his identity and criminal history while offering his services as a "financial coach." Between 2017 and 2020, Chalk, along with a group of entities he owned and controlled, are alleged to have fraudulently raised approximately $5 million from approximately 40 investors by selling investments in the Chairman's Fund by offering and selling securities in unregistered transactions. The complaint further alleges that, contrary to Chalk's representations to investors, he invested only a fraction of investors' money in a handful of unprofitable business ventures, and used the rest for his personal expenses (including the installation of a swimming pool at his home), and to make Ponzi-like payments to prior investors.
The final judgment enjoins Chalk from violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940, and orders Chalk liable for disgorgement of $1,731,423 and prejudgment interest of $13,078.64, with such amounts deemed satisfied by the restitution order entered against Chalk in United States v. Chalk, No. 21-cr-00049 (ALC) (S.D.N.Y.).
The SEC's investigation was conducted by Derek M. Schoenmann, Thomas Feretic, and Celeste Chase of the SEC's New York Regional Office. The SEC's litigation was led by Jack Kaufman and Mr. Schoenmann, and the case was supervised by Mark R. Sylvester.
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Resources
* SEC Complaint (https://www.sec.gov/files/litigation/complaints/2026/comp26540.pdf)
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Original text here: https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26540
FCC Media Bureau Announces Filing of Petition for Declaratory Ruling by Paramount Global
WASHINGTON, April 28 -- The Federal Communications Commission's Media Bureau issued the following public notice (MB Docket No. 26-93) on April 27, 2026:
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Paramount Global (Paramount or Petitioner), on behalf of itself and its subsidiaries that operate television broadcast stations (Licensees),/1 has filed a petition for declaratory ruling (Petition)/2 pursuant to section 310(b)(4) of the Communications Act of 1934, as amended (Act),/3 and section 1.5000(a)(1) of the Commission's rules,/4 requesting that the Commission find that it would serve the public interest to allow Paramount, the controlling
... Show Full Article
WASHINGTON, April 28 -- The Federal Communications Commission's Media Bureau issued the following public notice (MB Docket No. 26-93) on April 27, 2026:
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Paramount Global (Paramount or Petitioner), on behalf of itself and its subsidiaries that operate television broadcast stations (Licensees),/1 has filed a petition for declaratory ruling (Petition)/2 pursuant to section 310(b)(4) of the Communications Act of 1934, as amended (Act),/3 and section 1.5000(a)(1) of the Commission's rules,/4 requesting that the Commission find that it would serve the public interest to allow Paramount, the controllingU.S. parent of the Licensees, to accept indirect foreign equity and voting interests in excess of the 25% benchmarks set forth in section 310(b)(4) of the Act./5 Specifically, Paramount seeks a declaratory ruling from the Commission to: (1) permit existing and prospective foreign investors to indirectly hold equity and voting interests in Paramount, in the aggregate, in excess of the 25% statutory benchmarks; (2) specifically approve6 certain foreign investors to indirectly hold equity and/or deemed voting interests of greater than 5% in Paramount;/7 and (3) grant advance approval/8 for the non-controlling prospective foreign investors to increase their indirect equity and/or voting interests up to 20% in Paramount./9
Paramount states that it is "a Delaware corporation that, through the Licensees (each a direct or indirect wholly owned subsidiary of Paramount), operates 28 broadcast television stations in certain communities across the United States pursuant to Commission authorization."/10 In addition, Paramount notes that it is a "direct, wholly owned subsidiary of Paramount Skydance [Corporation]" (Paramount Skydance), which is a "leading global media, streaming, and entertainment company that creates premium content and experiences for audiences worldwide."/11
Paramount seeks this declaratory ruling in connection with a planned new investment (Proposed Investment), which, Paramount anticipates, will increase foreign investment in its parent entity, Paramount Skydance./12 Specifically, on February 27, 2026, Paramount Skydance and Warner Bros. Discovery, Inc. (WBD) "entered into a merger agreement" (Merger Agreement) providing for the "acquisition of WBD by Paramount Skydance."/13 Petitioner states that the Proposed Investment will occur through an "Equity Syndication,"/14 which will result in certain foreign investors holding nonvoting, Class B shares,/15 representing greater than 5% of total equity./16 As a result of the Proposed Investment, "the Ellison family and [RedBird Capital Partners] together will continue to hold the largest equity stake in Paramount Skydance and will continue to be the indirect owners of 100 percent of Paramount Skydance Class A Common Stock, representing 100 percent of the voting shares of, and thus control of, Paramount Skydance."/17 Paramount explains that the Proposed Investment will "not result in a transfer of control of Paramount" and the "Ellison family will retain a majority of the voting interests and control of Paramount."/18 Therefore, Paramount notes that "no other application is being filed in connection with this Petition."/19
Pursuant to section 1.5001(h) of the Commission's rules,/20 the Petitioner requests approval of up to 100% indirect aggregate foreign equity and voting interests in the controlling U.S. parent, Paramount./21 The Petitioner states that "[a]ll voting rights and other decision-making functions in Paramount will be controlled by the Ellison family through U.S. entities."/22 Pursuant to section 1.5001(i) of the Commission's rules,/23 the Petitioner requests specific approval for certain foreign entities that will hold indirectly greater than 5% equity and/or voting interests in Paramount./24 Specifically, the Petitioner makes the following requests for specific approval: (1) Public Investment Fund (Kingdom of Saudi Arabia) (15.1% equity and deemed voting/25); (2) L'Imad 1st SPV 2 Exempt RSC Ltd (United Arab Emirates) (12.8% equity and deemed voting); (3) L'imad 1st Holding 1 Exempt RSC Ltd (United Arab Emirates) (12.8% equity and deemed voting); (4) L'imad 1st Capital Holding Ltd (United Arab Emirates) (12.8% equity and deemed voting); (5) L'imad Holding Company - P.J.S.C (United Arab Emirates) (12.8% equity and deemed voting); (6) QIA TMT Holding LLC (Qatar) (10.6% equity and deemed voting); and (7) Qatar Investment Authority (Qatar) (10.6% equity and deemed voting)./26 The Petitioner also requests advance approval pursuant to section 1.5001(k) of the Commission's rules,/27 for each of the entities seeking specific approval to increase their equity and/or voting interests in Paramount up to 20% at some future time./28 A finding that an entity is "deemed" to hold a certain voting interest for purposes of determining compliance with section 310(b)(4) of the Act and section 1.5000(a)(1) et seq. of the Commission's rules does not indicate that the interest constitutes de jure control for purposes of compliance with section 310(d) of the Act.
Paramount asserts that grant of the Petition will serve the public interest, as it would "afford Paramount and, in turn, the Licensees, greater access to capital, including from foreign sources," which would enable Paramount to "compete more effectively in the provision of television broadcast services and in the broader video programming marketplace."/29 Specifically, Paramount provides that it recently has been making "strategic investments to improve the Licensees' newsgathering and reporting operations, both nationally and at a local level."/30 For example, Paramount notes that efforts are underway to rejuvenate "the Licensees' online presence, allowing them to meet viewers where they are and ensuring their continued relevance to the communities that they serve, in turn enhancing the availability of reliable, high-quality, non-paywalled local and national news across the country."/31
To this end, Paramount explains that "[r]educing barriers to further investment in Paramount, including by allowing the company to pursue additional capital from non-U.S. investors, will enable it to allocate additional resources to preserve and enhance the legacy and broad reach of the Licensees' television broadcast operations."/32 The Petition further states that "[i]n turn, Paramount's ability to compete in the television broadcast and broader video marketplaces will improve, thereby promoting the strength of the industry overall."/33 Paramount provides that the "new equity investment" will better position the company to "weather continuing challenges facing broadcasters and operators of linear paytelevision networks."/34
Finally, Paramount notes that "grant of this Petition will not present any national security, law enforcement, foreign policy, or trade policy concerns."/35 Specifically, Paramount explains, the "Ellison family (which includes only U.S. persons) will retain a majority of the voting interests and control of Paramount, and each of the entities through which the Ellison family holds its interests in the company is a U.S. entity."/36
Pursuant to Commission practice, the Petition will be referred to relevant Executive Branch agencies for their views on any national security, law enforcement, foreign policy, or trade policy concerns related to the foreign ownership of Paramount./37
EX PARTE STATUS OF THIS PROCEEDING
Pursuant to section 1.1200(a) of the Commission's Rules,/38 the Commission may adopt modified or more stringent ex parte procedures in particular proceedings if the public interest so requires. We announce that this proceeding will be governed by permit-but-disclose ex parte procedures that are applicable to non-restricted proceedings under section 1.1206 of the Rules./39
Parties making oral ex parte presentations are directed to the Commission's ex parte rules. Parties are reminded that memoranda summarizing the presentation must contain the presentation's substance and not merely list the subjects discussed./40 More than a one- or two-sentence description of the views and arguments presented is generally required./41 Other rules pertaining to oral and written presentations are set forth in section 1.1206(b), as well./42
GENERAL INFORMATION
The Petition referred to in this Public Notice has been accepted for filing upon initial review. The Commission may require Paramount to submit any additional documents or statements of fact that in its judgment may be necessary. The Commission also reserves the right to return any filing if, upon further examination, it is determined to be defective and not in conformance with the Commission's rules or policies. Interested persons must file comments no later than May 27, 2026. Replies must be filed no later than June 11, 2026.
To allow the Commission to fully consider all substantive issues regarding the Petition in as timely and efficient a manner as possible, commenters should raise all issues in their initial filings. A party or interested person seeking to raise a new issue after the pleading cycle has closed must show good cause why it was not possible for it to have raised the issue previously./43 Submissions after the pleading cycle has closed that seek to raise new issues based on new facts or newly discovered facts should be filed within 15 days after such facts are discovered. Absent such a showing of good cause, any issues not timely raised may be disregarded by the Commission.
All filings concerning matters referenced in this Public Notice should refer to MB Docket No. 2693.
Submissions in this matter may be filed electronically (i.e., through the Commission's Electronic Filing Comment System (ECFS)) or by filing paper copies as follows:
* Electronic Filers: Documents may be filed electronically using the Internet by accessing the ECFS: http://www.fcc.gov/ecfs/.
* Paper Filers: Parties who choose to file by paper must file an original and one copy of each filing. Filings can be sent by commercial overnight courier or by first-class or overnight U.S. Postal Service mail. All filings must be addressed to the Commission's Secretary, Office of the Secretary, Federal Communications Commission. Commercial courier deliveries (any deliveries not by the U.S. Postal Service) must be sent to 9050 Junction Drive, Annapolis Junction, MD 20701. U.S. Postal Service First-Class, Express, and Priority mail must be sent to 45 L Street, NE, Washington, DC 20554.
One copy of each pleading must be delivered electronically, by e-mail, or if delivered as paper copy, by commercial overnight courier, or by first-class or overnight U.S. Postal Service mail (according to the procedures set forth above for paper filings), to: (1) David Brown, Media Bureau, at David.Brown@fcc.gov; (2) Chris Robbins, Media Bureau, at Chris.Robbins@fcc.gov; (3) Fara Mohsenikolour, Media Bureau, at Fara.Mohsenikolour@fcc.gov; and (4) Emily Harrison, Media Bureau, at Emily.Harrison@fcc.gov. Any submission that is e-mailed to David Brown, Chris Robbins, Fara Mohsenikolour, and Emily Harrison should include in the subject line of the e-mail: (1) MB Docket No. 26-93; (2) the name of the submitting party; and (3) a brief description or title identifying the type of document being submitted (e.g., MB Docket No. 26-93 , [name of submitting party], Comments).
Copies of the Petition and any subsequently filed documents in this matter are available electronically through the ECFS, which may be accessed on the Commission's Internet website.
To request materials in accessible formats for people with disabilities (Braille, large print, electronic files, audio format), send an email to fcc504@fcc.gov or call the Consumer and Governmental Affairs Bureau at (202) 418-0530 (voice).
By: Chief, Video Division, Media Bureau
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Attachment
Paramount Licensees
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Call Sign ... Facility ID No. ... Community of License ... Licensee
WUPA ... 6900 ... Atlanta, GA ... Atlanta Television Station WUPA Inc.
KCBS-TV ... 9628 ... Los Angeles, CA ... CBS Broadcasting Inc.
KDKA-TV ... 25454 ... Pittsburgh, PA ... CBS Broadcasting Inc.
KPIX-TV ... 25452 ... San Francisco, CA ... CBS Broadcasting Inc.
KYW-TV ... 25453 ... Philadelphia, PA ... CBS Broadcasting Inc.
WBBM-TV ... 9617 ... Chicago, IL ... CBS Broadcasting Inc.
WCBS-TV ... 9610 ... New York, NY ... CBS Broadcasting Inc.
WCCO-TV ... 9629 ... Minneapolis, MN ... CBS Broadcasting Inc.
KCCW-TV ... 9640 ... Walker, MN ... CBS Broadcasting Inc.
WWJ-TV ... 72123 ... Detroit, MI ... CBS Broadcasting Inc.
WLNY-TV ... 73206 ... Riverhead, NY ... CBS LITV LLC
WBXI-CD ... 70416 ... Indianapolis, IN ... CBS Mass Media Corporation
WTOG ... 74112 ... St. Petersburg, FL ... CBS Operations Investments Inc.
W26DP-D ... 74116 ... Inverness, FL ... CBS Operations Investments Inc.
W36FJ-D ... 74113 ... Sebring, FL ... CBS Operations Investments Inc.
KTVT ... 23422 ... Fort Worth, TX ... CBS Stations Group of Texas LLC
WBZ-TV ... 25456 ... Boston, MA ... CBS Television Licenses LLC
WJZ-TV ... 25455 ... Baltimore, MD ... CBS Television Licenses LLC
WSBK-TV ... 73982 ... Boston, MA ... CBS Television Licenses LLC
WFOR-TV ... 47902 ... Miami, FL ... CBS Television Licenses LLC
KCNC-TV ... 47903 ... Denver, CO ... CBS Television Stations Inc.
WKBD-TV ... 51570 ... Detroit, MI ... Detroit Television Station WKBD Inc.
KCAL-TV ... 21422 ... Los Angeles, CA ... Los Angeles Television Station KCAL LLC
WBFS-TV ... 12497 ... Miami, FL ... Miami Television Station WBFS Inc.
WPSG ... 12499 ... Philadelphia, PA ... Philadelphia Television Station WPSG, Inc.
WPKD-TV ... 69880 ... Jeannette, PA ... Pittsburgh Television Station WPCW Inc.
KMAX-TV ... 51499 Sacramento, CA ... Sacramento Television Stations, Inc.
KOVR ... 56550 ... Stockton, CA ... Sacramento Television Stations, Inc.
KPYX ... 69619 ... San Francisco, CA ... San Francisco Television Station KBCW Inc.
KTXA ... 51517 ... Fort Worth, TX ... Television Station KTXA Inc.
KSTW ... 23428 ... Tacoma, WA ... The CW Television Stations Inc.
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Original text plus footnotes here: https://docs.fcc.gov/public/attachments/DA-26-411A1.pdf
FCC Consumer & Governmental Affairs Bureau Issues Public Notice: Comment Dates for Call Center Onshoring Notice of Proposed Rulemaking
WASHINGTON, April 28 -- The Federal Communications Commission Consumer and Governmental Affairs Bureau issued the following public notice (CG Dockets No. 26-52, 17-59, 02-278, 22-2) on April 27, 2026:
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On March 27, 2026, the Commission released the Notice of Proposed Rulemaking in CG Docket No. 26-52; Tenth Further Notice of Proposed Rulemaking in CG Docket No. 17-59; Further Notice of Proposed Rulemaking in CG Docket No. 02-278; and Third Further Notice of Proposed Rulemaking in CG Docket No. 22-2 that proposes ways to improve customer service communications and better protect consumers'
... Show Full Article
WASHINGTON, April 28 -- The Federal Communications Commission Consumer and Governmental Affairs Bureau issued the following public notice (CG Dockets No. 26-52, 17-59, 02-278, 22-2) on April 27, 2026:
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On March 27, 2026, the Commission released the Notice of Proposed Rulemaking in CG Docket No. 26-52; Tenth Further Notice of Proposed Rulemaking in CG Docket No. 17-59; Further Notice of Proposed Rulemaking in CG Docket No. 02-278; and Third Further Notice of Proposed Rulemaking in CG Docket No. 22-2 that proposes ways to improve customer service communications and better protect consumers'sensitive personal information by limiting use of foreign call centers and by improving standards applicable to a company's remaining foreign call center operations./1 The Notice sets deadlines for filing comments and reply comments at 30 and 60 days after publication of a summary in the Federal Register.
On April 23, 2026, a summary of the Notice was published in the Federal Register./2 Accordingly, comments are due on or before May 26, 2026, and reply comments are due on or before June 22, 2026./3 Complete comment filing instructions are set forth in the Notice./4
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Footnotes:
1/ See Improving Customer Service and Protecting Consumers Through Onshoring, CG Docket No. 26-52; Advanced Methods to Target and Eliminate Unlawful Robocalls, CG Docket 17-59; Telephone Consumer Protection Act, CG Docket No. 02-278; Empowering Broadband Consumers Through Transparency, CG Docket No. 22-2, Notice of Proposed Rulemaking in CG Docket No. 26-52; Tenth Further Notice of Proposed Rulemaking in CG Docket No. 17-59; Further Notice of Proposed Rulemaking in CG Docket No. 02-278; and Third Further Notice of Proposed Rulemaking in CG Docket No. 22-2, FCC 26-16 (rel. Mar. 27, 2026) (Notice).
2/ Federal Communications Commission, Improving Customer Service and Protecting Consumers Through Onshoring; Advanced Methods to Target and Eliminate Unlawful Robocalls; Telephone Consumer Protection Act; Empowering Broadband Consumers Through Transparency, Proposed Rule, 91 Fed. Reg. 21761 (Apr. 23, 2026).
3/ The due date for initial comments falls on Saturday, May 23, 2026. Pursuant to section 1.4(j) of the Commission's rules, 47 CFR Sec. 1.4(j), initial comments are due on the next business day, which is Tuesday, May 26, 2026.
4/ Notice at para. 113.
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Original text here: https://docs.fcc.gov/public/attachments/DA-26-410A1.pdf
New FTC Data Show People Have Lost Billions to Social Media Scams
WASHINGTON, April 27 -- The Federal Trade Commission issued the following news release:
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New FTC Data Show People Have Lost Billions to Social Media Scams
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New data from the Federal Trade Commission show that, in 2025, nearly 30% of people who reported losing money to a scam said that it started on social media, with reported losses reaching a staggering $2.1 billion.
Social media scams produced far more in losses-an eightfold increase since 2020-than any other contact method used by scammers to reach consumers, according to the new data.
The Data Spotlight (https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2026/04/reported-losses-scams-social-media-eight-times-higher-2020)
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WASHINGTON, April 27 -- The Federal Trade Commission issued the following news release:
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New FTC Data Show People Have Lost Billions to Social Media Scams
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New data from the Federal Trade Commission show that, in 2025, nearly 30% of people who reported losing money to a scam said that it started on social media, with reported losses reaching a staggering $2.1 billion.
Social media scams produced far more in losses-an eightfold increase since 2020-than any other contact method used by scammers to reach consumers, according to the new data.
The Data Spotlight (https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2026/04/reported-losses-scams-social-media-eight-times-higher-2020)notes that social media creates easy access to billions of people from anywhere in the world, making a scammer's job easier at very little cost. Scammers may hack a user's account, exploit what a user posts to figure out how to target them, or buy ads and use the same tools used by real businesses to target people by age, interests or shopping habits.
Reports show that in 2025, people reported losing more money to scams that started on Facebook than on any other social media platform. WhatsApp and Instagram were a distant second and third. In 2025, people reported losing far more money to scams on Facebook alone than they reported losing to text or email scams.
The data also show that all age groups, with the exception of those 80 and over, reported losing more money to scams that started on social media than any other contact method. And social media ranked second after phone calls for those 80 and over.
According to FTC data, social media scams come in different forms, including:
* Investment scams: People reported losing the most amount of money last year to investment scams that originated on social media, with losses of $1.1 billion, more than half of the total amount lost to social media scams, according to FTC data. These scams often started with an ad or post offering a program to teach you how to invest. Other scammers posed as friendly advisers or created WhatsApp groups full of "successful investors" sharing fake testimonials.
* Shopping scams: Shopping scams were the most reported type of social media scam last year, with more than 40% of people who lost money to a scam on social media reporting that they ordered something they saw in a social media ad-everything from clothes and makeup to car parts and even puppies. Many of these ads led to unfamiliar websites, while others sent people to sites impersonating well-known brands that claimed to offer big discounts.
* Romance scams: Reports show romance scams also thrive on social media-nearly 60% of people who reported losing money to a romance scam in 2025 said it started on a social media platform. According to reports, scammers often tailored their pitch based on people's profiles, later inventing a crisis requiring money or casually offering investment advice to draw them onto a fake investment platform.
To help steer clear of scams on social media the FTC advises consumers to:
* Limit who can see your posts and contacts on social media. Visit your privacy settings to set some restrictions so scammers have less to work with.
* Never let someone you have met only on social media direct your investment decisions. Instead, learn more about spotting investment scams.
* Before you buy, check out the company. Search online for its name plus "scam" or "complaint."
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Original text here: https://www.ftc.gov/news-events/news/press-releases/2026/04/new-ftc-data-show-people-have-lost-billions-social-media-scams
Llop vs. FEC seeks declaratory and injunctive relief (D.D.C. 26-cv-00051)
WASHINGTON, April 27 -- The Federal Election Commission issued the following news:
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Llop v. FEC seeks declaratory and injunctive relief (D.D.C. 26-cv-00051)
On January 7, 2026, Joachim William Llop (plaintiff), filed suit against the Commission in the U.S. District Court for the District of Columbia.
Plaintiff broadly challenges the constitutionality of the Federal Election Campaign Act and seeks declaratory and injunctive relief.
Resources
* Llop v. FEC litigation page (https://www.fec.gov/legal-resources/court-cases/llop-v-fec/)
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Original text here: https://www.fec.gov/updates/llop-v-fec-seeks-declaratory-and-injunctive-relief-ddc-26-cv-00051/
... Show Full Article
WASHINGTON, April 27 -- The Federal Election Commission issued the following news:
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Llop v. FEC seeks declaratory and injunctive relief (D.D.C. 26-cv-00051)
On January 7, 2026, Joachim William Llop (plaintiff), filed suit against the Commission in the U.S. District Court for the District of Columbia.
Plaintiff broadly challenges the constitutionality of the Federal Election Campaign Act and seeks declaratory and injunctive relief.
Resources
* Llop v. FEC litigation page (https://www.fec.gov/legal-resources/court-cases/llop-v-fec/)
***
Original text here: https://www.fec.gov/updates/llop-v-fec-seeks-declaratory-and-injunctive-relief-ddc-26-cv-00051/
FTC Takes Action Against High-Level MLM Participants who Deceived Workers About the Amount of Money They Can Earn
WASHINGTON, April 27 -- The Federal Trade Commission issued the following news release:
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FTC Takes Action Against High-Level MLM Participants who Deceived Workers About the Amount of Money They Can Earn
The Federal Trade Commission is taking action against high-level participants in a multilevel marketing (MLM) company over allegations they used false or baseless earning claims to recruit workers, most of whom did not earn any money.
The FTC alleged in a complaint that Steven and Gina Merritt, senior-level participants in a MLM called LifeWave, deceived consumers about the amount of
... Show Full Article
WASHINGTON, April 27 -- The Federal Trade Commission issued the following news release:
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FTC Takes Action Against High-Level MLM Participants who Deceived Workers About the Amount of Money They Can Earn
The Federal Trade Commission is taking action against high-level participants in a multilevel marketing (MLM) company over allegations they used false or baseless earning claims to recruit workers, most of whom did not earn any money.
The FTC alleged in a complaint that Steven and Gina Merritt, senior-level participants in a MLM called LifeWave, deceived consumers about the amount ofmoney they could earn from selling products and recruiting new participants for the company, which sells health and wellness products.
"The Merritts used inflated earnings claims to entice potential participants to join LifeWave when in reality most people did not earn any money," said Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection. "The FTC has been very clear that if you tell consumers they will make lots of money, you need to back up the claims."
The FTC alleged that the Merritts repeatedly claimed people could earn substantial income from selling LifeWave products and recruiting new members. For example, in a video posted to their YouTube page in May 2025 from a recruiting meeting, Gina Merritt said, "We're going to make you a - can I say buttload - a buttload of money...I cannot wait to help you guys get to the top rank and make $25,000 or more a week." Steven Merritt also said at that same meeting, "The money keeps coming, even if you don't show up, and you can't stop it. It's like a spigot of water but a spigot full of $100 bills throwing at you, coming at you. You can't stop it. Anybody want that?"
Despite these income claims, according to the complaint, LifeWave's own income disclosure statements show that most people make little or no money. In fact, LifeWave's 2024 income disclosure statement stated that 79% of active participants earned nothing in commission payments in 2024, and that, at most, only 0.035% of active participants earned more than $25,000 a week in 2024.
In an order settling the FTC's allegations, the Merritts will be prohibited from misrepresenting or assisting others in misrepresenting how much money others can earn from various business ventures. This includes prohibiting them from misrepresenting:
* Expressly or by implication, including through images of homes, vehicles, purchases, or travel, earnings that participants will or are likely to make;
* The amount of earnings that they or other participants have actually earned;
* The reason participants do not earn substantial compensation; and
* Any other fact material to consumers concerning the business venture.
In addition, they are prohibited from making any representation, expressly or by implication, regarding the amount of earnings that a participant can expect to earn unless: it is not misleading, they can substantiate in writing the earnings claim when it is made, and they provide evidence upon request to any individual who expresses an interest in becoming a participant. The Merritts also will be required to notify their downline participants about the FTC's allegations and the order's prohibition on making deceptive and unsubstantiated earning claims.
This is the second case in the past month where the Commission has taken action against high-level MLM participants for making deceptive earnings claims.
The Commission vote to authorize the staff to file the complaint and stipulated final order against the Merritts was 2-0. The complaint and order were filed in the U.S. District Court for the Southern District of Florida.
NOTE: The Commission files a complaint when it has "reason to believe" that the named defendants are violating or are about to violate the law and it appears to the Commission that a proceeding is in the public interest. Stipulated final orders have the force of law when approved and signed by the District Court judge.
The lead staff on this matter are Claire Wack and Melissa Dickey in the FTC's Bureau of Consumer Protection.
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Original text here: https://www.ftc.gov/news-events/news/press-releases/2026/04/ftc-takes-action-against-high-level-mlm-participants-who-deceived-workers-about-amount-money-they
Consumer Financial Protection Bureau Report: '2025 Consumer Response Annual Report'
WASHINGTON, April 27 (TNSres) -- The Consumer Financial Protection Bureau issued the following report on March 31, 2026, entitled "2025 Consumer Response Annual Report."
Here are excerpts:
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One of the primary functions of the Consumer Financial Protection Bureau (CFPB or Bureau) is collecting, investigating, and responding to consumer complaints. The CFPB is committed to implementing statutory requirements, including the Fair Credit Reporting Act (FCRA), to help consumers, collect more accurate consumer complaint data, and effectively protect the Bureau's complaint system from misuse.
Despite
... Show Full Article
WASHINGTON, April 27 (TNSres) -- The Consumer Financial Protection Bureau issued the following report on March 31, 2026, entitled "2025 Consumer Response Annual Report."
Here are excerpts:
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One of the primary functions of the Consumer Financial Protection Bureau (CFPB or Bureau) is collecting, investigating, and responding to consumer complaints. The CFPB is committed to implementing statutory requirements, including the Fair Credit Reporting Act (FCRA), to help consumers, collect more accurate consumer complaint data, and effectively protect the Bureau's complaint system from misuse.
Despiteunprecedented challenges posed by credit repair and other actors who are misusing the complaint process, the CFPB has continued to process complaints efficiently by delivering timely responses to consumers. The Office of Consumer Response (Consumer Response) works to provide timely responses to consumers, in writing, to complaints concerning a covered person. In 2025, the CFPB received more than 6.6 million complaints and sent more than 5.9 million to companies for review and response.
Of those complaints sent to companies, the Bureau sent 97% to a company in a day or less. Companies, in turn, provided a timely response to more than 99% of complaints sent to them for review and response.
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View full report at: https://files.consumerfinance.gov/f/documents/cfpb_2025-cr-annual-report_2026-03.pdf
