A federal district court in California ruled for the Federal Trade Commission on all 16 counts against Jason Cardiff, Eunjung Cardiff and seven companies doing business as Redwood Scientific Technologies, the FTC said on March 25, 2022. The findings include false Made in USA claims.
The defendants sold dissolvable oral film strips as aids for quitting smoking, losing weight and sexual performance.
What the court found and ordered
- The court found the Cardiffs made false Made in USA claims, used fake testimonials, made illegal robocalls and enrolled buyers in auto-ship plans without consent.
- The order bans them from deceptively claiming any product is made in the USA.
- It also bans them from selling film strips to consumers, multi-level marketing, robocalls and negative-option sales.
The FTC said consumers lost $18.2 million, but the court ordered no compensation, citing the Supreme Court’s AMG Capital Management v. FTC ruling.
“Unfortunately, the FTC still hasn’t been given back its full authority to return money to fraud victims.”
Samuel Levine, Director, FTC Bureau of Consumer Protection
FAQ
Who were the defendants?
Jason Cardiff, Eunjung Cardiff and seven companies doing business as Redwood Scientific Technologies.
Did the court find false USA claims?
Yes. It found the Cardiffs made false Made in USA claims.
Did consumers get refunds?
No. The court cited the AMG ruling and ordered no compensation.
Source & credit
Source: Federal Trade Commission, March 25, 2022: “Federal Court Rules in Favor of FTC, Halting Illegal Tactics Used to Promote Smoking Cessation, Weight-Loss, and Sexual-Performance Aids”.