WASHINGTON, D.C. — In a decisive move against fraudulent business practices during the COVID-19 pandemic, the Federal Trade Commission (FTC) has enforced significant penalties against Kevin Lipsitz, who misled consumers with false promises of “next day” shipping of facemasks and respirators. As a result of an FTC lawsuit, Lipsitz is now banned from selling personal protective equipment (PPE) and is required to pay over $145,000 to the FTC.
The case against Lipsitz and his company, SuperGoodDeals.com, was initiated by the FTC in July 2020. The company had attempted to exploit the increased demand for PPE during the early days of the pandemic, beginning in March 2020. Despite claiming that PPE was “in stock” and would “Ship Tomorrow” if purchased immediately, Lipsitz and SuperGoodDeals frequently failed to have the necessary stock and often took weeks to ship the ordered merchandise.
“Failing to adhere to promised fast shipping times for facemasks, or any other product for that matter, isn’t just unscrupulous – it’s illegal,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “The FTC will take strong action against those engaging in such practices.”
SuperGoodDeals received numerous complaints regarding the shipping delays, including some from customers in urgent need of PPE. These included healthcare professionals, individuals with compromised immune systems, and child welfare workers making in-home visits.
The court order agreed upon by Lipsitz and SuperGoodDeals includes several significant stipulations:
- A permanent ban on selling protective equipment: Lipsitz and SuperGoodDeals are permanently prohibited from selling any PPE designed to prevent disease or infection spread.
- Prohibition on misleading shipping promises: Lipsitz and SuperGoodDeals are also forbidden from making any shipping time promises without a reasonable basis for those claims. They must also abide by the requirements of the Mail, Internet, or Telephone Order Merchandise Rule.
- Prohibition on other deceptive practices: Lipsitz and SuperGoodDeals are prevented from misrepresenting any refund policy, the nature or quality of any good (including whether it is certified or specifically branded), and any other material misrepresentations.
- Turn over funds: Lipsitz is required to pay $145,958.59 to the FTC.
The total monetary judgment in the proposed order is $1,088,984.20. However, the majority of this is suspended due to the defendants’ inability to pay the full amount. If it is discovered that the defendants lied in their financial disclosures to the FTC, the full judgment will become immediately payable.
This case seeks to safeguard consumers, especially during crises when unethical companies might exploit increased demand for specific products. The judgment unequivocally warns other businesses that deceitful behaviors will face zero tolerance, with strict penalties enforced.
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