Facts

The Federal Trade Commission filed a complaint seeking a permanent injunction against the defendants in relation to claims it made in its advertisements.

PLAINTIFF'S CONTENTIONS: Defendants sold gold and silver in the United States to customers. The defendants' advertising appeared on television, radio, and the internet, without notifying potential customers when they could expect shipment of purchases to occur. After customers were met with shipment delays, and sometimes denial of a refund, complaints about the defendants were made to organizations such as the Better Business Bureau. Multiple consumers lost money as a result of the defendants' business practices.

The FTC charged the defendants with violating the FTC Act and the Mail, Internet, or Telephone Order Merchandise Rule. The FTC alleged defendants published misrepresentative advertisements, and failed their consumers in terms of helping them with merchandise they didn't receive, and did not ship merchandise in a timely manner.

DEFENDANTS' CONTENTIONS: Defendants denied the allegations.

Result

The court granted the FTC's motion for summary judgment and found several violations, including unjust enrichment of approximately $6.5 million. The defendants were permanently enjoined from further dealings in precious metals. The defendants were also enjoined from failing to provide customers with shipping details in connection with other business ventures. Judgment was also entered against the defendants in the amount of the total unjust enrichment.