FTC Announces “Free” iPhone Spammer Settles Charges

The FTC announced that it has reached a settlement in one of eight separate complaints filed against scammers who collectively sent more than 180 million unsolicited text messages containing deceptive promises of free gifts and prizes. It’s a rather bittersweet victory, however. The settlement with Henry Nolan Kelly requires him to give back all the money gained in the scheme, but the $60,000 fine has been waived due to his "inability to pay." The final stipulated order does prohibit Kelly from any future marketing-by-text schemes, which are illegal in the first place. He must also cooperate with any future investigations. Kelly allegedly sent more than 20 million unwanted text messages to consumers across the country, offering “free” iPhones and iPads to those who clicked on links in the messages. The complaints against Kelly, alleged that after clicking on the links, consumers were requested to provide substantial personal information and were additionally required to go through an “elaborate process” to be eligible for the “free” devices. The process sometimes included making purchases or buying paid subscriptions. NONE of the promised “free” items were ever handed out.