Article: U.S. District Court, Maryland: Federal Trade Commission v. Innovative Marketing, Inc.

Consumer Protection

Failure to state a claim for individual liability

BOTTOM LINE: The FTC's Complaint alleged sufficient facts to establish an enterprise's fraudulent practices and to show that the enterprise's officer was aware of and participated in such practices; thus, the officer's motion to dismiss for failure to state a claim against him as an individual was denied.

CASE: Federal Trade Commission v. Innovative Marketing, Inc., No. 08-3233, (decided Sept. 16, 2009) (Judge Bennett).

FACTS: The term "scareware" refers to a software-driven, Internet- based scheme that exploits consumers' legitimate concerns about Internet-based threats like spyware and viruses by issuing false ...

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