Scammers who subscribed Americans, without their knowledge, to deliveries of CBD and keto diet products will have to turn over assets worth around $40 million to victims, a federal court has ruled.
The court-approved refunds follow complaints that the scammers deceived online shoppers, concealed their identities, illegally charged victims and then sent them the products, the Federal Trade Commission said Tuesday.
The companies forced online shoppers to buy more than $200 million of CBD and keto products with "free" ads, by pre-checking boxes at checkout, sharing their credit cards without consent and by bundling products with no way to opt out, the FTC said.
To pay the victims, the scammers will have to shell out cash and a mix of valuable items.
They include a worn Michael Jordan jersey and shorts from 1998 Eastern Conference Semi Finals bought for around $1.35 million, a Richard Mille Tourbillon Aerodyne watch bought for $1.225 million and cryptocurrency worth around $100,000.
Still, the $40 million settlement doesn't make up for the more than $200 million the scammers charged victims, suggesting the FTC is seeking to recoup more of the losses.
Defendants U.K. resident Harshil Topiwala, Florida resident Kirtan Patel and Florida resident Manindra Garg ran the companies called Legion Media, KP Commerce, Pinnacle Payments and Sloan Health Products, the FTC said.