The Day – FTC Issues Cease and Desist Order Regarding Uncasville Insurance Company Revenue Claims
Montville – Last month, the Federal Trade Commission issued a cease and desist request to Family First Life, an Uncasville-based life insurance marketing company, after reviewing social media posts and determining that the company “unlawfully misrepresents that consumers who become Family First Life participants in the business opportunity are likely to earn substantial income.”
The email is dated Dec. 27, but the FTC included it in a Wednesday press release collating letters sent to more than 20 companies, mostly about false claims about COVID-19 treatments and cures. .
Family First Life does not sell its own insurance but partners with insurers and is made up of independent agents across the country. Chairman Shawn Meaike started the company in 2013.
The email to Meaike — from Lois C. Greisman, associate director of the Marketing Practices Division — featured three examples from April, June and July, including two from TikTok and one from YouTube. A TikTok post read “Earn your WEEKLY payday in ONE DAY as an agent with Family First Life… What was your biggest payday in a month? – Last month I checked mine and it was like $40,000 in a month.”
The FTC said representations regarding a business opportunity are considered false or misleading if participants “generally do not achieve such results.” Even true testimonials from participants who earn a significant income or more will likely be misleading unless the advertisement also specifies the amount won or lost. by most participants.
The letter stated that Meaike was responsible for the claims of participants and representatives.
Greisman ended by asking Meaike to certify within 48 hours “that you and your participants and representatives have ceased making express and implied income statements that would be false or misleading to current or potential participants.”
FTC spokesman Mitchell Katz said the commission does not comment on whether companies have responded to or complied with the letters because it is nonpublic information, but confirmed that the FTC does not. had announced no further action against the company since December 27. I don’t answer a voicemail or email on Thursday.
In October and November, the commission had sent Family First Life a copy of its notices of criminal offenses regarding money-making opportunities and endorsements and testimonials, said engaging in the conduct described could expose the company to civil penalties of up to $43,792 per violation, and requested that the notices be distributed to subsidiaries.
The October letter said the staff did not single out the company, but distributed notices widely to multi-level marketing companies, franchises, gig companies and others.