The Washington State Attorney General’s Office (AGO) and the Federal Trade Commission (FTC) are clamping down on fraudsters selling fake cures and vaccines for COVID-19 and fake schemes to make a buck during the COVID-19 crisis.
The Washington State Attorney General’s Office sent a letter to the owner of North Coast Biologics, Johnny T. Stine, to stop making false or unsupported claims about a supposed vaccine for COVID-19.
The Federal Drug Administration (FDA) has not approved a vaccine yet. Estimates for an approved vaccine remain at a year to a year and half.
If North Coast Biologics does not stop making its misrepresentations, the AGO can ask a court for a judgement that can include a civil penalty of up to $2,000 per individual violation.
At the federal level, the Federal Trade Commission has sent out letters to 10 multi-level marketing companies (MLM) “…to remove and address claims that they or their participants are making about their products’ ability to treat or prevent coronavirus disease or about the earnings people who have recently lost income can make, or both.”
Andrew Smith, Director of the FTC’s Bureau of consumer Protection said, “During this health and economic crisis, we are on the lookout for false income claims for work-at-home opportunities, in addition to spurious health claims that products can treat or prevent COVID-19.”
This is in addition to letters that the FTC recently sent out to other companies making similar unsubstantiated claims.
The recipients have 48 hours to tell the FTC about the specific actions that they have taken to address the agency’s concerns.
The AGO warns that scammers are sending text and emails offering products to prevent getting the virus or offering cash or a work from home scheme for workers recently laid off. In reality, the scammers are looking for personal information or to install malware that can collect personal information or install ransomware.
For more information about the AGO and FTC actions and tips to prevent yourself from becoming a victim of a COVID-19 scam, checkout the following links,
Washington State Attorney General’s Office:
https://www.atg.wa.gov/news/news-releases/ag-ferguson-sends-cease-and-desist-letter-seattle-business-selling-covid-19
Federal Trade Commission:
https://www.ftc.gov/news-events/press-releases/2020/04/ftc-sends-warning-letters-multi-level-marketers-regarding-health
https://www.ftc.gov/news-events/press-releases/2020/04/thrive-supplement-marketer-agrees-preliminary-order-barring-him
https://twitter.com/FTC/status/1255225103324938240
usa.gov:
https://www.usa.gov/common-scams-frauds#item-214623
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