The Federal Trade Commission (FTC) has asked a federal court to rule against Jason and Eunjung Cardiff without a full trial. The agency filed a motion for summary judgment on August 6th, asserting there is no genuine dispute over the Cardiffs' liability for fraud. A default judgment has also been requested against their company, Redwood Scientific Technologies.
The FTC’s filing cites extensive evidence supporting its claims. This includes a sixty-eight page memorandum and three hundred and eight pages detailing uncontroverted facts and legal conclusions. Despite a substantial court record of 440 filings, the Cardiffs have not provided evidence to counter the FTC’s allegations of deceptive practices.
Through this legal maneuver, the FTC aims to permanently bar the Cardiffs from engaging in a range of fraudulent activities. These include making false claims about product effectiveness, scientific backing, and "Made in the USA" origins. The agency also seeks to stop deceptive auto-ship enrollment tactics, failure to provide clear cancellation methods for recurring charges, and misrepresentations about earning potential. Furthermore, the FTC wants to prevent unauthorized consumer charges and the use of robocalls to sell goods. A permanent injunction would enforce these prohibitions.
The proposed judgment includes a monetary penalty of $18.2 million. The Cardiffs have informed the FTC of their intention to contest the summary judgment motion.
In a parallel action, the FTC is seeking a default judgment against Redwood Scientific Technologies and its related corporate entities. If granted, this would impose a similar permanent injunction and financial penalty on the company.
The FTC’s motion for summary judgment was granted against the Cardiffs in October of the previous year. However, a subsequent development in July 2021 revealed that despite the FTC Act violations, the Cardiffs would not face any monetary penalties related to that specific judgment.
