Turning the Tables on Fraudulent Direct Marketing Tactics

Alain Jeff Ifrah

Practice Area:White Collar Crime

Outcome:In the end, we resolved the dispute in an out-of-court settlement on terms favorable to our client.

Description:When an Internet retailer of consumer products discovered fraud by the direct marketing agency it had retained to promote its products online, Ifrah PLLC helped the retailer turn the tables. Although the direct marketing agency, or affiliate network, agreed to craft a marketing campaign that complied with all advertising and consumer protection laws, it failed to do so. The network drove millions of leads to the retailer, a substantial number of those turned out to be from webpages containing claims the retailer did not approve. This resulted in a substantial loss of advertising dollars for our client, the possible loss of good will among its customers, and exposure to state and federal consumer protection claims. After we advised the retailer to stop paying the affiliate network, it filed a breach-of-contract lawsuit in federal court in California seeking $2.5 million in damages. We responded by filing a countersuit for the non-compliant webpages.