FTC Takes Action Against "Free Gift Card" Scam Operation Targeting Consumers Nationwide

In a significant move to protect consumers from deceptive marketing tactics, the Federal Trade Commission (“FTC”) has cracked down on an international network of scammers behind millions of unwanted text messages that promised "free" gift cards. These messages, often luring recipients with offers of $1,000 gift cards to major retailers like Best Buy, Walmart, and Target, were part of an elaborate scheme designed to steal money and personal information from unsuspecting consumers. The FTC's latest complaint underscores its ongoing commitment to curbing harmful practices like robocalls and fraudulent text message campaigns. The operation, which spanned multiple countries, sent millions of unsolicited text messages to consumers, many of whom were charged for receiving them. The messages, claiming to offer free prizes or electronics, directed recipients to websites where they were tricked into providing sensitive personal details. These websites falsely advertised “free” gift cards but required consumers to divulge personal information, apply for credit, or pay upfront fees to subscribe to various services. This latest action is part of a larger, coordinated effort by the FTC to target the use of spam texts as a deceptive marketing tool. Just months earlier, the Commission conducted a nationwide sweep aimed at eliminating these types of scams. In its latest complaint, the FTC named several entities and individuals involved in the operation, including companies from the U.S., Canada, India, and Cyprus. These defendants are accused of violating both the FTC Act and the Telemarketing Sales Rule. If you would like to read more about this case and others, visit our Case Studies Library.