When Big Companies Get Caught Deceiving You

The Federal Trade Commission has been active lately. In the last few weeks, they've fined or forced settlements from five major companies for deceiving customers. None of this is new ground, but it's useful to know what kinds of tricks keep working—and what the FTC is watching for.

Smart Speakers Aren't Listening to Sell You Ads (Anymore)

Cox Media Group and two other companies claimed they could target advertisements based on what you said near your smart speakers and devices. They said you had agreed to this. Neither claim was true. The FTC required them to pay nearly $1 million to settle. The lesson here is straightforward: companies cannot use your conversations to build advertising profiles, and they cannot claim you opted into something you didn't. If you're skeptical about what your smart device is doing, that instinct is worth listening to.

Shutterstock Made Cancelling Nearly Impossible

Shutterstock charged customers without clear consent, buried their auto-renewal terms, and made cancelling subscriptions deliberately difficult. This is a pattern the FTC sees repeatedly with digital subscriptions. The company will pay $35 million. Before you sign up for any subscription service—photo editing, streaming, cloud storage—look for the cancellation process in advance. If a company makes it hard to find, that's a signal. Shutterstock learned this the expensive way.

Fake Repair Shops in Your Neighborhood

One company created thousands of fake business listings for home repair services. They posed as local contractors you might trust and posted fake reviews to look legitimate. When you searched for a plumber or roofer nearby, these phantom businesses came up in results. Real local contractors lost customers to this scheme. If you need a contractor, ask neighbors for referrals, check reviews across multiple platforms, and call the business directly using a number you find independently (not from the listing itself).

MLM Promises That Don't Pay Out

IM Mastery Academy told recruits they could earn serious money through financial training and a multi-level marketing structure. The earnings claims were false. The scheme convinced thousands of people to pay for programs that didn't deliver. The operators will turn over nearly $90 million in assets. If someone promises you'll make money by recruiting others into a program, step back. That's how multilevel marketing works, and the math rarely favors the recruit.

When Payment Processors Enable Fraud

Cliq, a payment processing company, was found in contempt of court for violating an earlier FTC order designed to stop fraud. They were ordered to pay $6.5 million. This one matters less to you directly, but it shows that the FTC will pursue companies that knowingly help scammers operate. If you use a payment processor and notice suspicious activity, report it.

What This Means for You

These settlements show that large companies still try these tricks, which means they often work. But they also show the FTC is catching them. You don't need to remember every company or scheme. Remember instead: read the fine print before you agree to anything, check cancellation policies in advance, verify local businesses independently, and be wary of promises that sound too good to be true. When in doubt, ask a friend or search online. You're in good company with your skepticism.