FTC barred AuraVie skincare sellers from deceptive marketing and billing tactics

A total of thirty-two defendants who sold AuraVie, Dellure, LéOR Skincare, and Miracle Face Kit branded skincare products have agreed to court orders with the FTC or had default orders entered against them.

The two remaining defendants among a group of California-based marketers are permanently barred from the deceptive marketing and billing tactics they allegedly used in connection with selling skincare products offered to consumers with supposedly "risk-free" trials. The court order resolves the Federal Trade Commission's charges against them, which the agency announced in mid-2015.

A total of thirty-two defendants who sold AuraVie, Dellure, LéOR Skincare, and Miracle Face Kit branded skincare products have agreed to court orders with the FTC or had default orders entered against them. The proposed court settlement announced today resolves the FTC's charges against the remaining two defendants in the case, Alan Argaman and Secured Merchants, LLC.

The FTC alleged Argaman owned and controlled two companies that were part of the scheme, Secured Merchants and Secured Commerce, LLC, which previously defaulted in this case. According to the FTC, Argaman provided services to help continue the skincare marketers' unauthorized billing practices.

The court order announced today bars Argaman and Secured Merchants from engaging in deceptive practices in connection with the promotion or sale of any good or service, including failing to disclose clearly and conspicuously material terms of offers, failing to obtain a consumer's express informed consent before submitting billing information for payment, and violating FTC's Telemarketing Sales Rule (TSR).

It also imposes a $320,665.89 judgment against the defendants, which is suspended based on their inability to pay. The full judgment will become due, however, if a court later finds they misrepresented their financial condition.