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Consumers were promised huge earnings but the results were similar to most multi-level-marketing schemes

By Truman Lewis Consumer News: FTC cracks down on IM Mastery Academy founders in https://www.robinspost.com/news/images/banners/consumeraffairs-vector-logo-2023.png.2 billion fraud case of ConsumerAffairs
August 8, 2025
  • Three defendants will pay $2.5 million to settle FTC and Nevada allegations over deceptive earnings claims tied to a financial training MLM scheme.
  • The group, operating under names like IM Mastery Academy and IYOVIA, targeted young people via social media with promises of luxury lifestyles.

  • The FTC says the scheme caused more than $1.2 billion in consumer harm since 2018.


Three key figures behind a sprawling financial training and alleged multi-level marketing (MLM) schemeonce known as IM Mastery Academyhave agreed to pay $2.5 million to settle allegations brought by the Federal Trade Commission and the state of Nevada. The regulators say the trio used deceptive income promises and glamorized social media marketing to lure consumersespecially young adultsinto buying financial education packages and joining a recruitment-driven business opportunity.

The defendantsGlobal Dynasty Network, LLC, Jason Brown, and Matthew Rosawere top earners and promoters of the program, according to the joint federal-state complaint. The companies and individuals operated under a variety of names, including IYOVIA, IM Academy, iMarketsLive, and IM Mastery Academy, and promised participants the opportunity to profit through forex trading and crypto education, along with lucrative commissions for recruiting others.

In reality, the FTC says the business relied on exaggerated or baseless income claims, with few consumers making real money. Since 2018, total consumer losses linked to the scheme have exceeded $1.2 billion, the agency alleges.

Luxuries, lies, and MLM profits

Brown and Rosa, described as among the highest-paid promoters in the scheme, allegedly pocketed more than $36 million in profitsmost of it funneled through their company, Global Dynasty Network. The FTC says Brown even hired a third party to post fake positive reviews online under a pseudonym to boost the companys image.

Their promotional strategy relied heavily on aspirational lifestyle marketing, including posts on Instagram and TikTok showcasing luxury cars, international travel, and high-end shoppingimplying that these were funded by trading gains or MLM commissions. In reality, many participants lost money or failed to earn back their initial investment.

The defendants also trained other marketers to make similar deceptive claims while avoiding detection, the complaint says.

The terms of the settlement

Under the proposed settlement, the three parties are barred from making earnings claims about any product or service unless they have written evidence that the results are typical. They are also permanently banned from:

  • Misrepresenting earnings or product performance in any business they operate or promote.

  • Violating the Telemarketing Sales Rule, including false claims about profitability.

  • Offering negative option services (subscriptions that renew automatically) without clear disclosures and affirmative consent from consumers.

While the judgment against the trio totals $36 million, that amount is suspended after they pay $2.5 million, based on their reported financial condition. If they are found to have misrepresented their finances, the full amount could become due.

A broader warning on MLMs

The case underscores ongoing concerns about deceptive marketing in the MLM and financial education spaces, particularly those that promise wealth through crypto, forex, or online investing. The FTC has been increasingly aggressive in policing such schemes in recent years, including actions against companies like Success By Health and Digital Altitude.

Consumers are urged to approach MLM and trading education opportunities with caution, particularly when high earnings claims are not backed by clear evidence, and when profitability appears tied more to recruitment than actual product value.


Tip: Always verify earnings claims before buying into a business opportunity. If someone flaunts luxury goods as evidence of success, ask for documentationnot just Instagram posts.




Posted: 2025-08-08 15:37:54

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Consumer News: MSNBC morphing into MS NOW, as it splits from NBC News

Mon, 18 Aug 2025 19:07:07 +0000

The channel started out as a joint venture of Microsoft and NBC. Both have since bailed.

By James R. Hood of ConsumerAffairs
August 18, 2025

MSNBC is dropping the NBC from its name as it splits from NBC News.

The cable network will rebrand later this year as MS NOW short for My Source for News, Opinion, and the World.

Parent company Comcast is spinning off its cable channels into a new entity called Versant, forcing a broader rebrand.


MSNBC is cutting ties with NBC News and its longtime moniker, announcing that later this year the cable channel will relaunch under a new name: MS NOW.

The rebranding comes as parent company Comcast prepares to spin off most of its cable channels into a separate company, Versant. The transition, expected to take effect later this year, marks one of the most significant shake-ups in the networks nearly 30-year history.

MSNBC president Rebecca Kutler described the name change as a chance to establish independence after decades of brand confusion. This new branding underscores our mission: to serve as a destination for breaking news and best-in-class opinion journalism, all rooted in accurate and reported facts, she wrote in a staff memo.

The new identity drops the iconic NBC peacock, which Comcast is retaining for its broadcast network and other properties. Versant CEO Mark Lazarus confirmed that logos across the spinoffs channels including MSNBC, CNBC, and Golf Channel will be redesigned to remove the peacock imagery. CNBC will retain its name, however, due to its legacy as the Consumer News and Business Channel and international licensing agreements.

MSNBCs origins date back to 1996, when Microsoft partnered with NBC to create a hybrid tech-news venture. Although Microsoft sold its stake years ago, the MSNBC brand remained. Over time, the cable channels left-leaning primetime programming diverged sharply from the straighter tone of NBC News, fueling long-standing tensions and repeated calls for a name change.

With the spinoff, MSNBC is also building out its own newsroom, hiring dozens of journalists to reduce reliance on NBC News correspondents. Kutler told staff that while the name will change, the networks mission will not: Our commitment to our work and our audiences will not waiver from what the brand promise has been for three decades.

The MS NOW logo, unveiled Monday, signals that fresh chapter one designed to cement the channels identity apart from NBC as it competes in an increasingly fractured media landscape.


Read More ...


Consumer News: Instagram’s new map feature sparks safety fears — What parents should know

Mon, 18 Aug 2025 16:07:07 +0000

Location sharing puts kids at risk, attorneys general charge

By Truman Lewis of ConsumerAffairs
August 18, 2025
  • 37 state attorneys general urge Meta to restrict Instagrams new real-time location-sharing tool, citing risks to children and vulnerable users.
  • The feature, called Map, launched Aug. 6 and shows users profile pictures and live locations to mutual followers.

  • Meta says the tool is off by default and already includes safeguards, but critics argue it prioritizes engagement over safety.


When Instagram rolled out a new feature called Map on Aug. 6, it pitched the tool as a way to help friends connect. The function allows users to share their profile picture and real-time location with anyone who follows them.

But within days, a bipartisan coalition of 37 state attorneys general blasted the rollout, warning that the change could make children and survivors of abuse more vulnerable.

In a letter to Instagram chief Adam Mosseri, the officials said Meta failed to adequately account for the safety risks of letting users particularly minors broadcast their whereabouts live.

Unrestricted location-sharing features pose a particular risk for minors as they can be readily used by sexual predators to identify and geographically target children in the real world, the attorneys general wrote.

Why attorneys general are pushing back

The coalition is calling for specific safeguards before the feature gains traction:

  • Ban minors from using real-time location sharing.

  • Warn adult users clearly about risks and data usage.

  • Guarantee easy opt-out so adults who enable the tool can turn it off anytime.

New Mexico Attorney General Ral Torrez, who helped spearhead the effort, said Instagrams move highlights Metas priorities.

Instagram is once again prioritizing engagement over safety, Torrez said. It is absolutely stunning that the company would allow children on the platform to enable a feature which would provide predators with even more information to target and abuse them.

Torrezs office is already suing both Meta and Snapchat parent Snap Inc., alleging that their platforms fuel child exploitation and fail to protect young users.

What parents and users can do now

While attorneys general push for stricter limits, Instagram users already have ways to control their exposure. Heres how to manage or disable theMapfeature:

  1. Check your settings:When the feature is introduced, youll see a notification explaining it. By default, it is turned off.

  2. Opt out completely:Go into Instagrams settings, find the Location Sharing or Map option, and toggle it off.

  3. Limit visibility:If you choose to use it, set location sharing to Close Friends instead of all followers.

  4. Monitor teen accounts:Parents using Instagrams supervision tools get notifications if a teen enables the feature and can block access.

  5. Talk about risks:Encourage kids and teens to think twice before broadcasting their live location, especially in public or unfamiliar places.

Metas defense: off by default

Meta maintains that Instagram Map was designed responsibly. The company stresses the tool is off by default, comes with an in-app notification explaining how it works, and can be disabled at any time. Parents supervising teen accounts are alerted if their child activates location sharing and can block access altogether.

Real-time location features should of course be intentionally built and give users control, a Meta spokesperson said, arguing that Instagram Map already incorporates safeguards.

Instagram also notes that teen accounts include built-in protections limiting who can contact them and what content they can see.

A history of battles over privacy and safety

The Map controversy is not happening in a vacuum. For more than a decade, Meta (formerly Facebook) has faced scrutiny from regulators and state attorneys general over how its platforms handle privacy, safety, and youth protections.

  • 2011 FTC settlement: Facebook agreed to 20 years of privacy audits after being accused of misleading users about how their data was shared.

  • 2018 Cambridge Analytica scandal: The company came under fire when millions of users data was harvested without consent for political targeting.

  • 2021 Facebook Papers: Leaked documents revealed internal research showing Instagram harmed teens mental health, particularly girls sparking bipartisan calls for reform.

  • 2023 lawsuits: Dozens of states sued Meta, alleging its algorithms knowingly addict children and exacerbate mental health issues.

These battles have sharpened concerns among regulators that Meta tends to roll out engagement-driven features first and address safety implications only after public backlash.

Engagement vs. safety the bigger debate

Critics say Instagram Map is the latest example of a design choice that privileges user engagement at the expense of security. Privacy experts note that giving Meta a company with a checkered history on data protection access to detailed, real-time location information raises fresh risks.

For predators, stalkers, or abusers, location data could become a powerful tool. And for policymakers, the feature underscores the ongoing struggle to hold tech giants accountable for the downstream consequences of their products.

The broad coalition of attorneys general spanning red and blue states alike reflects how child safety on social media has become one of the few bipartisan issues in U.S. politics.

Whether Meta alters the feature remains unclear. But the uproar suggests that location-sharing on social media will be a flashpoint in the larger fight over digital privacy, online exploitation, and the responsibilities of tech platforms.


Read More ...


Consumer News: Is AI making it easier to spread false information as news?

Mon, 18 Aug 2025 16:07:07 +0000

Once an incorrect article is published, AI may perpetuate it

By Mark Huffman of ConsumerAffairs
August 18, 2025
  • Some outlets are prioritizing clicks over fact-checking, allowing unverified rumors to spread as news. Examples include false claims about stimulus checks and stricter federal driving rules for older adults.

  • Once misinformation is published, AI tools may unintentionally amplify it, since they rely on existing content. Even fact-checking platforms like Snopes cannot always prevent widespread circulation.

  • While AI has the potential to help distinguish fact from fiction, it struggles when trained on or exposed to inaccurate sources, illustrated by ChatGPT repeating the false drivers license story in its responses.


In the pursuit of clicks, some news outlets are publishing articles without verifying the accuracy of the information. ConsumerAffairs recently found two examples

Last week, we reported on the number of stories that proclaimed that the IRS had confirmed that the Trump administration would send out stimulus checks to some Americans, using money collected from tariffs.

While it is true that Trump has publicly suggested it might be a good idea, and a member of the Senate has drafted legislation to that effect, for now, it remains just an idea. Yet, if you Google 1390 stimulus checks, youll find plenty of articles reporting it as fact.

A second example of a rumor being reported as news is the assertion that the U.S. Department of Justice is implementing new, tougher driver's license rules for older drivers, including requiring drivers over 80 to take an annual road test.

However, the federal government has no jurisdiction over drivers license rules. Thats left up to the states and each state has different rules. While its true that some states like California and Florida has more stringent rules for older drivers, those states are the exception.

Rumors as news

So, why are you seeing this rumor reported as fact? Apparently, a rumor widely circulated on social media in mid-2025 claimed mandatory federal rules affecting all drivers aged 70+ would start in July or August.

However, major factchecking outlets like Snopes investigated and found the reports to be false. But when one website reported it as fact and others followed, it spread across the internet

What role is artificial intelligence playing in the spread of misinformation? It should be able to separate fact from fiction, but if AI is working with bad information, it becomes more difficult.

For example, when we recently asked ChatGPT for a list of news stories that affect older adults, it listed the false story about drivers license rules.

AI should, in theory, help separate fact from fiction by cross-checking claims against reliable sources. But when its training or reference material contains widespread falsehoods, AI can become a megaphone for bad information rather than a filter.


Read More ...


Consumer News: COVID levels rising in Los Angeles and the Southwest

Mon, 18 Aug 2025 04:07:07 +0000

The CDC's reversal on vaccine guidelines for children is facing a legal challenge

By James R. Hood of ConsumerAffairs
August 18, 2025

L.A. County wastewater shows COVID levels at their highest since February.

The CDCs reversal on vaccine guidance for children and pregnant women faces a legal challenge.

Health officials urge masking in crowded places and boosters for those at higher risk.


The Southwest leads the nation with a 12.5% COVID infection rate, according to the latest figures from the CDC. In Los Angeles County,COVID-19 levels in wastewater have climbed to their highest point since February, raising concerns of another summer wave. Public health experts say wastewater tracking can catch surges earlier than clinical testing, and often better reflects the spread of the virus among people who never develop symptoms.

Photo
Source: CDC

County health officials stressed that the rise doesnt yet match the large waves of past winters, but they are urging precautions. Were asking residents especially older adults and those with underlying conditions to be mindful in crowded indoor spaces and consider wearing a high-quality mask, the Department of Public Health said in a statement. The agency also encouraged people who have not had a recent COVID booster to consult their doctors about whether they should get one.

The spike comes as vaccine policy becomes a flashpoint in Washington. In May, Health Secretary Robert F. Kennedy Jr. announced the Centers for Disease Control and Prevention had dropped COVID shots from its recommended immunization schedule for healthy children and pregnant women. Kennedy defended the rollback as a correction of Biden-era guidance, which had promoted repeat COVID boosters for children despite a lack of clinical data to support that approach.

Vaccine policy challenged

The decision prompted an immediate lawsuit from major medical organizations including the American Academy of Pediatrics, the American College of Physicians and the American Public Health Association who called it baseless and uninformed. They argued the move violated federal law by ignoring the Advisory Committee on Immunization Practices (ACIP), the panel that sets U.S. vaccine recommendations.

ACIP has continued to back updated COVID boosters alongside annual flu shots. In its latest update, the committee noted boosters reduced hospitalization risk by 44% and death by 23% last season, and said the benefits outweighed the rare risks of heart inflammation or allergic reactions. Still, it acknowledged the vaccines lose effectiveness as new strains emerge.

Despite those benefits, uptake has been weak. Only about 23% of adults and 13% of children received the 202425 COVID booster, compared with about half of Americans who got a flu shot.

Public health officials say that low vaccination coverage, combined with rising wastewater signals, makes preventive steps more important. Were not calling for widespread mandates, the county said, but this is a moment to take commonsense precautions stay home if youre sick, mask in high-risk settings and keep your vaccines up to date.


Read More ...


Consumer News: Consumer sentiment dips for the first time since April

Mon, 18 Aug 2025 04:07:07 +0000

More consumers express concerns about inflation

By Mark Huffman of ConsumerAffairs
August 18, 2025
  • Consumer sentiment slipped 5% in August, marking the first decline in four months.

  • Inflation worries drove a sharp drop in buying conditions for durable goods, falling 14% to a one-year low.

  • Inflation expectations rose across the board, with year-ahead projections climbing to 4.9%.


U.S. consumer sentiment declined in August for the first time since spring, reflecting renewed concerns about inflation and household finances, according to a preliminary University of Michigan Surveys of Consumers report. The full survey will be released at the end of the month.

The sentiment index fell about 5% from July, breaking a three-month streak of improvement. Joanne Hsu, director of the Surveys of Consumers, said the downturn was fueled largely by growing worries about rising prices. Consumers outlook on buying conditions for durable goods plunged 14%, hitting its lowest level in a year, as households felt the pinch of elevated costs.

Finances under pressure

The survey found that current personal finances weakened modestly, with many respondents citing diminished purchasing power. At the same time, expected personal finances ticked up slightly, supported by a modest firming in income expectationsthough overall sentiment about future earnings remained muted.

Hsu noted that consumers are no longer anticipating the kind of worst-case economic scenarios that loomed in April, when reciprocal tariffs briefly threatened to intensify inflationary pressures. Still, worries about both inflation and unemployment remain at the forefront of household concerns.

Photo

Increased worries about inflation

Inflation expectations shifted upward in August after easing for several months. The survey showed year-ahead inflation expectations rose to 4.9%, up from 4.5% in July. The increase was broad-based, cutting across demographics and political affiliations. Long-run inflation expectations also edged higher, climbing to 3.9% from 3.4% last month.

While both measures remain below the peaks recorded in April and May 2025, the uptick points to ongoing uncertainty about the economys trajectory. August marked the end of a two-month decline in short-run inflation expectations and a three-month decline in long-run forecasts.

Consumers continue to expect both inflation and unemployment to deteriorate in the future, Hsu said.

The July Consumer Price Index remained flat compared to June, with few signs of inflation. However, the July Producer Price Index rose 0.9% from June, suggesting building inflation at the wholesale level.


Read More ...


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