FTC returns $27.6 million to victims of unauthorized health product billing schemes

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Andrew N. Ferguson Chairman | Federal Trade Commission

FTC returns $27.6 million to victims of unauthorized health product billing schemes

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The Federal Trade Commission (FTC) has begun distributing more than $27.6 million to consumers who were charged for products and services without their consent. The payments are being sent to over 1.2 million individuals who were affected by unauthorized billing schemes involving health-related products.

According to a complaint filed by the FTC in July 2024, several companies—Legion Media, LLC, KP Commerce, LLC, Pinnacle Payments, LLC, Sloan Health Products, LLC—and their principals operated two types of scams. In one scheme, consumers purchasing CBD and Keto-related products were billed amounts higher than advertised and enrolled in ongoing payment plans without their knowledge. Another scheme involved offering a “free” gift that required a small shipping fee; after paying this fee with credit or debit cards, consumers found recurring charges on their accounts for items they did not agree to purchase.

Settlements announced by the FTC in September 2024 required the defendants to surrender tens of millions of dollars in assets and permanently barred them from engaging in similar conduct or using negative option marketing features.

The refund process is underway through December 18, 2025. Most recipients will receive checks by mail and are advised to cash them within 90 days. Some will get PayPal payments that must be redeemed within 30 days. Consumers with questions can contact Rust Consulting at 866-914-9330 or visit the FTC website for more information about refunds. The FTC emphasizes that it does not require any payment or account details from consumers to issue refunds.

Interactive dashboards on the FTC’s website provide detailed breakdowns of refund data by state. In total during 2024, actions taken by the FTC resulted in over $339 million returned to consumers nationwide through various cases.

The FTC continues its mission to promote competition and protect consumers through education and enforcement efforts. It reminds people that it never asks for money or sensitive information when providing refunds and encourages reporting of fraud or bad business practices via its official channels.

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