FTC, Wellco Fulfill your self with deceptive TV aerial ads
WASHINGTON-An agreement was reached between the Federal Trade Commission and Wellco Inc. and its owner and CEO George M. Moscone that Wellco sold indoor TV antennas and signal amplifiers to consumers, making misleading claims that the products allow them to do so would cut the cord and still get their favorite channels for free.
According to the FTC, Wellco has violated FTC law by making misleading performance claims for its OTA television antennas and associated signal amplifiers, using misleading consumer notices, and misrepresenting some of their websites as news reports about antennas.
Wellco began marketing and selling indoor TV antennas and amplifiers to consumers in 2017 under the brand names TV Scout, SkyWire, SkyLink and Tilt TV. The FTC claims to have sold more than 800,000 antennas and more than 272,000 amplifiers.
“The defendants used every trick in the book to sell their antennas and amplifiers to people, including older adults, who wanted to save money on cable and satellite television channels,” said Daniel Kaufman, acting director of the FTC Bureau of Consumer Protection. “People should be able to trust companies’ claims and not discover they were told lies after they buy.”
Among the claims Wellco made of the products, the FTC claimed that users could stop paying for cable or satellite television subscriptions and still receive all of their favorite television channels; that a significant proportion of users receive more than 100 premium channels in HD; They allow consumers to receive more channels than most other TV antennas on the market. and that they were the top rated indoor HDTV antennas in America. In addition, Wellco claimed that their amplifiers significantly increased the number of stations their antennas could receive and that by using both consumers, HBO and AMC could be received.
Under the terms of the settlement, Wellco would be prohibited from making claims regarding the rating, ranking, or superiority of any product over any other product. the channels users get; or a material aspect of a product’s performance, effectiveness, or key characteristics, unless the claims are true and justified. The company is also prohibited from advertising by misrepresenting a website that a website is an objective news report or that independent tests prove the effectiveness of a product.
The proposed order also sought a judgment against Wellco for $ 31.82 million. However, the verdict will be suspended once the defendants pay $ 650,000 to the FTC as they are unable to pay the full verdict.
The settlement was unanimously approved by the FTC.