FTC Distributes $2.8 Million in Refunds to Victims of Deceptive ‘Free Trial’ Scheme

FundsImage by Michael Kin

WASHINGTON, D.C. — The Federal Trade Commission (FTC) announced the distribution of more than $2.8 million in refunds to individuals misled by a fraudulent “free trial” scheme orchestrated by Apex Capital Group and its associates. This initiative marks the culmination of a legal battle that commenced in 2018, targeting deceptive marketing practices in the personal care and dietary supplement sectors.

The FTC’s 2018 complaint against Apex Capital Group, alongside Phillip Peikos, David Barnett, and various affiliated entities, unveiled a complex operation exploiting online consumers. Marketed under the guise of “free trial” offers, the products were instead sold at full price, with consumers unknowingly enrolled in ongoing subscription plans. This deceptive practice ensnared countless individuals into unauthorized financial commitments, leveraging an intricate network of shell companies and straw owners both domestically and internationally to process payments.

The fraudulent operations, which began in early 2014, saw a range of personal care items and supplements pushed onto unsuspecting consumers. The scheme persisted until November 2018, when a court order, prompted by the FTC, effectively halted the deceptive activities.

In the aftermath of this legal victory, the FTC is dispatching 153,940 refund checks to affected consumers. Each recipient is advised to cash their checks within 90 days, as indicated. This refund process is a significant step in providing restitution to those impacted by Apex Capital’s unscrupulous business practices.

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