Government Actions

FTC Matter/File Number: X130054, Civil Action Number: 1:19-cv-25046-RNS

As of April 8, 2022:

FTC Win at Trial Against On Point Global Makes $102 Million in Refunds Available for Consumers Harmed by Fake Government Website Scams. Consumers Who Paid or Submitted Personal Information to Fake DMV, Government Benefits Sites Must Apply for Redress by July 5, 2022

The Federal Trade Commission’s trial win against On Point Global has made $102 million in refunds available to consumers who were harmed by a wide-ranging scheme that led them to pay money or hand over personal information to fake government websites. Consumers who were harmed must apply for redress payments by July 5, 2022.Consumers who were deceived by a wide-ranging scheme into handing over money or personal information in exchange for bogus advice on how to apply for government benefits can apply for redress payments as a result of a Federal Trade Commission lawsuit, but must do so by July 5, 2022.

The scammers, sued by the FTC in December 2019, ran hundreds of deceptive websites that promised a quick and easy government service, such as renewing a driver’s license, or eligibility determinations for public benefits like Section 8 housing or food stamps. The sites had names like DMV.com, floridadriverslicense.org and many others that were designed to mimic legitimate government websites. The defendants operated under several names, including On Point Global.

On sites where consumers submitted payments for supposed government services, they received at most a PDF with publicly available information on how to apply for a drivers’ license. On other sites that claimed to tell consumers if they were eligible for government benefits, consumers who submitted detailed and sensitive personal information almost immediately began receiving a wave of unwanted sales and marketing contacts.

As a result of the FTC’s win at trial, a federal court ordered a refund process to be established for consumers who were harmed by On Point Global and its network of fake websites. Consumers must submit claims in order to receive payments, and payment is available both for consumers who paid money to the sites and those who submitted personal information.

The money being used to provide payments to consumers is a result of a contempt motion filed by the FTC against one of the defendants in the case, Burton Katz. Katz was previously sued by the FTC for placing millions of dollars in unwanted charges on consumers’ mobile phone bills by using spam text messages pitching “free” gift cards. As a result of that suit, Katz was placed under a court order prohibiting from any further violations of the FTC Act. Because of his involvement in this new fake government websites scam, the FTC filed the motion alleging that Katz and other defendants were in contempt of that order. The court ruled in the FTC’s favor on the motion and awarded the monetary relief.

If a consumer either: paid money to an On Point Global fake DMV site between January 2017 and December 2019 and didn’t already get their money back, or submitted their personal information to an On Point Global government benefits site in 2019, they are eligible for a payment, and should receive an email by mid-April with instructions from the company handling the claims process. Legitimate emails related to this settlement will come from noreply@onpointclaimform.com, or from an ftc.gov email address, and will be sent to the e-mail address used when consumers paid or submitted information to the bogus site.

Consumers who believe they are eligible for a payment and have not received an email should visit https://onpointclaimform.comand enter their name and email address. They should get an email immediately with a personalized claim link, and they should follow the instructions in that link. They must enter the same email address used when they paid for fake DMV services. If they don't have access to that email, the site provides instructions on how to change their contact email.

While the refund process is not being administered by the FTC, there is additional information available for affected consumers on the FTC’s website. Consumers who paid money to fake DMV sites can visit https://ftc.gov/OnPointDMV for more information; consumers who submitted personal information to fake government benefits sites can visit https://ftc.gov/OnPointBenefits for more information.

LINK: https://www.ftc.gov/news-events/news/press-releases/2022/04/ftc-win-at-trial-against-on-point-global-makes-102-million-in-refunds-for-consumers

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As of February 5, 2020, FTC Matter/File Number: X130054, Civil Action Number: 1:19-cv-25046-RNS

A court has granted the Federal Trade Commission's request to preliminarily halt a scheme in which the defendants operated hundreds of websites that promised a quick and easy government service, such as renewing a driver's license, or eligibility determinations for public benefits. Following an evidentiary hearing, the court held that the FTC was likely to prevail in proving that "the websites were patently misleading."

The FTC's filings in the case allege that consumers provided their information because they believe the websites will actually provide these services. Instead, consumers received only a PDF containing publicly available, general information about the service they sought.

Documents filed by the FTC allege that the defendants' sites employed similar branding, language, and functionality to induce consumers to relinquish their credit card information, personal data, or both.

State Licensing Sites

According to the complaint, the defendants operated sites like DMV.com, which offers links for driver's services in all 50 states and presents itself as a clearinghouse for many types of DMV-related services, from licensing to driving records, under the heading "Online DMV Services." Other sites operated by the defendants included floridadriverslicense.org, coloradodriverslicenses.org, californiadrivers.org, and texasdriverslicenses.org.

The defendants used search-engine advertising and search-engine optimization to target consumers who search for state motor-vehicle or licensing services online. The FTC's complaint alleges that in the spring and summer of 2019, entering the phrases "renew Florida drivers license online" and "get fishing license" into online search engines brought up the defendants' sites as either the first- or second-listed link.

According to the complaint, after consumers submitted payment, in some instances, the sites simply linked back to the landing page, and the consumer received nothing. In other instances, the consumer received an email containing a link to a downloadable PDF with general, publicly available information.

The FTC alleges that the defendants' sites did not deliver the promised services.

Public Benefits Sites

Documents filed by the FTC further allege that the defendants also operated dozens of websites that promise to verify consumers' eligibility for public benefits. These sites appeared high in search results or sponsored links when consumers searched for ways to obtain public benefits.

The defendants' public benefits sites offered to help consumers seeking government programs, such as housing assistance, food stamps, Medicaid, or unemployment benefits. According to the complaint, the sites solicited certain core pieces of personal information from consumers, including, but not limited to, their full name, address, date of birth, gender, telephone number, and email address.

According to the complaint, the sites also asked consumers about various sensitive topics, including their employment status, income range, social security eligibility, health insurance, credit-card debt, and health conditions. The FTC alleges that consumers who provided all the requested information on the defendants' public benefits websites did not receive the promised eligibility determination.

According to the complaint, after providing information on the defendants' public benefits websites, consumers almost immediately began receiving marketing emails from the defendants and third parties. Consumers also started receiving text messages containing marketing offers from the defendants and third parties. The emails and texts contained various marketing offers, including job-search assistance, free gift cards, and homebuyer grants. The complaint alleges that the defendants received millions of dollars from selling the personal data they collected from consumers through deceptive marketing.

The FTC complaint names as defendants Burton Katz, Brent Levison, Robert Zangrillo, Arlene Mahon, and Elisha Rothman, along with more than fifty companies they own and control.

The Commission vote authorizing the staff to file the complaint was 5-0. The complaint was filed in the U.S. District Court for the Southern District of Florida.

For further assistance please contact
Federal Trade Commission
600 Pennsylvania Avenue, NW
Washington, DC 20580
Telephone: (202) 326-2222

LINK: https://www.ftc.gov/news-events/press-releases/2020/02/court-stops-sprawling-scheme-operated-hundreds-websites-deceived?utm_source=govdelivery