Default judgment has been entered towards Redwood Scientific Applied sciences and a bunch of company defendants.
Remaining judgment has additionally been entered towards proprietor Jason Cardiff and spouse Eunjung Cardiff.
Again in 2018, the FTC accused Redwood Scientific Applied sciences and associated company defendants of FTC Act, the Restore On-line Consumers’ Confidence Act, the Digital Fund Switch Act and Telemarketing and Shopper Fraud and Abuse Prevention Act violations.
Named company defendants are Redwood Scientific Applied sciences (included in CA, NV, DE), Establish LLC, Superior Males’s Institute Prolongz LLC, Run Away Merchandise LLC and Carols Place LP.
The courtroom deems the company defendants as “numerous iterations and shells of each other”. To maintain issues easy, I’ll check with them because the “Redwood company defendants”.
Not one of the Redwood company defendants filed a response to the FTC’s criticism. This prompted the regulator to file for file for default judgment in August 2020.
The hazard of future violations by the Company Defendants justifies the issuance of everlasting injunctive reduction, together with banning them from partaking in sure actions.
As per the phrases of the granted injunctive reduction, the Redwood company defendants are banned from
- performing detrimental possibility gross sales (billing customers for product gross sales they don’t choose out of);
- making robocalls and ringless voicemails;
- “partaking or collaborating in any multilevel advertising and marketing program”;
- “promoting, advertising and marketing, selling, or providing on the market of any dissolvable oral movie strip to end-user customers”;
- claiming their merchandise “assist customers give up smoking”, “causes or assists in inflicting weight reduction”, “suppresses or helps suppress urge for food”, “helps customers keep away from gaining again any weight reduction”, “will increase ejaculation management or the period of intercourse”, “treats or prevents untimely ejaculation”, or “cures, mitigates, or treats any illness”; and
- making representations their merchandise are superior alternate options for any of the above.
- misrepresenting product endorsements;
- claiming merchandise are made within the US once they aren’t;
- making deceptive and misleading earnings claims;
- mendacity about buyer satisfaction charges, whole prices, refund insurance policies, product advantages, product trial presents, buyer billing, how buyer billing data is used and transactions approved by customers;
- failing to honor refunds, returns and/or cancellation requests;
- partaking in bank card laundering;
- mendacity to fee processors and banks;
- “partaking in any techniques to keep away from fraud-and-risk monitoring packages”;
- making unauthorized prices; and
- misusing submitted buyer data.
An exception for prohibited acts in factors 5 and 6 is given, supplied “competent and dependable scientific proof substantiating” any representations made are supplied.
Any such proof
should include human medical testing of the product, or of an Basically Equal Product, that’s ample in high quality and amount primarily based on requirements usually accepted by specialists within the related illness, situation, or operate to which the illustration relates, when thought-about in mild of your complete physique of related and dependable scientific proof, to substantiate that the illustration is true.
Such testing should be: (1) randomized, double-blind, and placebo-controlled; and
(2) performed by researchers certified by coaching and expertise to conduct such testing.
The Redwood company defendants are topic to twenty years of compliance monitoring. There isn’t any financial part to the judgment order.
Remaining judgement towards Redwood’s proprietor, Jason Cardiff and spouse Eunjung, was additionally entered on March 1st.
Remaining judgment stems from granting of abstract judgment towards the Cardiffs in 2020.
The Cardiffs operated the Company Defendants as a standard enterprise, and the Company Defendants have been “all concerned within the sale of the Merchandise [with] cash, merchandise, and workers stream[ing] freely between them.”
The Cardiffs have been the “beneficiaries and masterminds” of the frequent enterprise, and “had data of the misrepresentations in promoting or have been recklessly detached to the falsity of the misrepresentations.”
The ultimate judgment reaffirms the findings of abstract judgment, in that the Cardiffs
- lied in regards to the efficacy of the TBX-FREE, Eupepsia Skinny and Prolongz strips;
- supplied a false money-back assure for the strips;
- falsely claimed the oral strips have been made within the US;
- supplied faux weight reduction testimonials for the strips;
- lied about enrolling unsuspecting customers into an autoship program;
- made “false and unsubstantiated claims that individuals who grew to become Rengalife members have been prone to earn substantial earnings”;
- made unauthorized billing funds to shopper’s credit score and debit playing cards; and
- engaged in robocall fraud.
The injunctive reduction granted towards the Cardiffs mirror that of the Redwood company defendants.
Of explicit word is the Cardiffs being banned from MLM for all times.
IT IS FURTHER ORDERED that Jason Cardiff and Eunjung Cardiff, whether or not performing immediately or by way of an middleman, together with by consulting, planning, facilitating, or advising, are completely restrained and enjoined from partaking or collaborating in any multilevel advertising and marketing program.
As with the Redwood company defendants, there’s no financial penalty related to the ultimate judgment order.
It is a results of the Supreme Courtroom siding with scammers final 12 months.
BehindMLM took an curiosity within the Redwood proceedings on account of its ties to RengaLife.
Each the default judgment and last judgment orders carry BehindMLM’s protection of the Redwood litigation to a detailed.