`FEDERAL TRADE COMMISSION,
`
`
`Plaintiff,
`
`v.
`
`
`
`
`WELLCO, INC., a corporation, and
`
`GEORGE M. MOSCONE, individually and as an
`officer of WELLCO, INC.,
`
`
`
`
`
`
`Case 1:21-cv-02081-MKV Document 1 Filed 03/10/21 Page 1 of 20
`
`UNITED STATES DISTRICT COURT
`SOUTHERN DISTRICT OF NEW YORK
`
`
`
`
`
`Case No. ____________
`
`COMPLAINT FOR PERMANENT
`INJUNCTION, MONETARY
`RELIEF, AND OTHER RELIEF
`
`
`
`
`Defendants.
`
`Plaintiff, the Federal Trade Commission (“FTC”), for its Complaint alleges:
`
`1.
`
`The FTC brings this action under Section 13(b) of the Federal Trade Commission
`
`Act (“FTC Act”), 15 U.S.C. § 53(b), which authorizes the FTC to seek, and the Court to order,
`
`permanent injunctive relief, rescission or reformation of contracts, the refund of monies paid,
`
`restitution, disgorgement of ill-gotten monies, and other relief for Defendants’ acts or practices
`
`in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). Defendants’ violations are in
`
`connection with the advertising, marketing, distribution, and sale of television antennas and
`
`related amplifiers.
`
`JURISDICTION AND VENUE
`
`2.
`
`This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331, 1337(a),
`
`and 1345.
`
`3.
`
`Venue is proper in this District under 28 U.S.C. § 1391(b)(1), (b)(2), (c)(1),
`
`(c)(2), and (d), and 15 U.S.C. § 53(b).
`
`
`
`1
`
`

`

`Case 1:21-cv-02081-MKV Document 1 Filed 03/10/21 Page 2 of 20
`
`PLAINTIFF
`
`4.
`
`The FTC is an independent agency of the United States Government created by
`
`the FTC Act, which authorizes the FTC to commence this district court civil action by its own
`
`attorneys. 15 U.S.C. §§ 41-58. The FTC enforces Section 5(a) of the FTC Act, 15 U.S.C.
`
`§ 45(a), which prohibits unfair or deceptive acts or practices in or affecting commerce.
`
`DEFENDANTS
`
`5.
`
`Defendant Wellco, Inc. (“Wellco”), formerly Wellco Media, Inc., is a New York
`
`Corporation with its principal place of business at 580 5th Ave., Suite 34, New York, NY 10036.
`
`Wellco transacts or has transacted business in this District and throughout the United States.
`
`6.
`
`At all times relevant to this Complaint, acting alone or in concert with others,
`
`Wellco has advertised, marketed, distributed, or sold television antenna products to consumers
`
`throughout the United States.
`
`7.
`
`Defendant George M. Moscone (“Moscone”) is the President, Chief Executive
`
`Officer, and owner of Wellco. At all times relevant to this Complaint, acting alone or in concert
`
`with others, he has formulated, directed, controlled, had the authority to control, or participated
`
`in the acts and practices of Wellco, including the acts and practices set forth in this Complaint.
`
`He is responsible for the day-to-day management of Wellco, researches and identifies the
`
`specific products sold by Wellco, assists in determining the price at which the products will be
`
`sold, and assists in the development of the packaging for the products. Defendant Moscone
`
`reviewed and approved Wellco’s web pages, including those challenged in this Complaint.
`
`Moscone was aware, and sometimes directed, that substantial portions of the text and images for
`
`those web pages, including text and images at issue in this Complaint, were copied from web
`
`
`
`2
`
`

`

`Case 1:21-cv-02081-MKV Document 1 Filed 03/10/21 Page 3 of 20
`
`pages advertising competing sellers’ TV antenna products. He communicates with Wellco’s
`
`payment processors and its performance marketing agency, the entity that recruits and manages
`
`marketing affiliates. He has been involved in the development of policies for handling consumer
`
`inquiries and complaints and supervising customer service representatives. He co-created
`
`templates for Defendants’ customer service representatives to use to respond to customer service
`
`inquiries and complaints about performance of Defendants’ antenna products. Defendant
`
`Moscone resides in this District and, in connection with the matters alleged herein, transacts or
`
`has transacted business in this District and throughout the United States.
`
`COMMERCE
`
`8.
`
`At all times relevant to this Complaint, Defendants have maintained a substantial
`
`course of trade in or affecting commerce, as “commerce” is defined in Section 4 of the FTC Act,
`
`15 U.S.C. § 44.
`
`DEFENDANTS’ BUSINESS ACTIVITIES
`
`9.
`
`Since 2017, Defendants have advertised, offered for sale, sold, and distributed
`
`indoor, television antennas and associated television antenna amplifiers. They have sold the
`
`antennas and amplifiers under the TV Scout, SkyWire, SkyLink, and Tilt TV brand names. The
`
`television antennas sold under each brand name have all, with one exception in early 2017, been
`
`one identical model (the “Wellco TV Antenna”). The television antenna amplifiers sold under
`
`each brand name have all been one identical model (the “Wellco TV Amplifier”).
`
`10.
`
`Defendants began using the TV Scout brand to sell their antennas and amplifiers
`
`(“TV Scout Antennas and Amplifiers”) in March 2017. The focus of Defendants’ marketing
`
`shifted to using the SkyWire brand for their antennas and amplifiers (“SkyWire TV Antennas
`
`
`
`3
`
`

`

`Case 1:21-cv-02081-MKV Document 1 Filed 03/10/21 Page 4 of 20
`
`and Amplifiers”) in July 2017, although some sales of the TV Scout Antennas and Amplifiers
`
`continued. In June 2018, Defendants adopted the SkyLink brand for their antennas and
`
`amplifiers (“SkyLink Antennas and Amplifiers”), and ceased marketing SkyWire Antennas and
`
`Amplifiers by July 2018 due to trademark issues. In January 2019, Defendants introduced Tilt
`
`TV brand antennas and amplifiers (“Tilt TV Antennas and Amplifiers”), but continued
`
`marketing SkyLink Antennas and Amplifiers.
`
`11.
`
`Defendants have operated websites to advertise, market, and sell their Wellco TV
`
`Antennas and Amplifiers at gettvscout.com, skywiretvantenna.com, getskylinktvantenna.com,
`
`skylinktvantenna.com, gettilttv.com, and tilttvantenna.com domains. Defendants’ performance
`
`marketing agency recruited affiliates who published or disseminated advertising, including email
`
`marketing, social media ads, native ads, and search ads, that directed consumers to one of the
`
`versions of Defendants’ web pages. Defendants concurrently hosted multiple versions of their
`
`web pages for each antenna brand, and the page on Defendants’ websites to which any consumer
`
`was directed varied by affiliate and affiliate advertisement.
`
`12.
`
`The Wellco TV Antenna is a thin, black, rectangular antenna that is
`
`approximately 8¼ inches wide by 4¾ inches tall. It has an approximately ten foot long coaxial
`
`cable to connect to a television. Antennas such as the Wellco TV Antenna are sometimes
`
`referred to as “mud flap” style antennas.
`
`13.
`
`The Wellco TV Amplifier is a boxlike device, measuring approximately 2 x 1¼ x
`
`½ inches. One end of the Wellco TV Amplifier attaches to the Wellco TV Antenna’s coaxial
`
`cable; and the other end of the amplifier has a coaxial cable that connects to a television. The
`
`amplifier also has a cable that attaches to a USB port for power.
`
`
`
`4
`
`

`

`Case 1:21-cv-02081-MKV Document 1 Filed 03/10/21 Page 5 of 20
`
`14.
`
`The price of one Wellco TV Antenna ranged from $22.53 to $39.95. The price of
`
`one Wellco TV Amplifier was $32.00. When customers purchased multiple antennas or
`
`amplifiers, the price per device was reduced. Defendants sold more than 800,000 SkyWire,
`
`SkyLink, and Tilt TV Antennas and more than 272,000 TV Scout, SkyWire, SkyLink, and Tilt
`
`TV Amplifiers, resulting in approximately $35 million in sales after product returns.
`
`15.
`
`Defendants have disseminated or caused to be disseminated advertisements for
`
`Wellco TV Antennas and Amplifiers. Advertisements for Wellco TV Antennas and Amplifiers
`
`include, but are not necessarily limited to, the attached Exhibits A through F. These materials
`
`contain the following statements and depictions, among others:
`
`A.
`
`SkyWire TV Antenna Web Page
`
` SKYWireTV
` ANTENNA
`The #1 rated indoor HDTV
`antenna in America.
`
` …
`
`
`
`SKYWIRE ANTENNA TECHNOLOGY ALLOWS YOU TO
`WATCH FREE TV IN 1080 HD
`The average home pays over $750 for cable in just one year! Consumers are getting
`ripped off by the big cable companies and there is nothing they can do about it… until
`now. A NASA scientist created this antenna so that the little guy could “fight back”
`and enjoy their favorite TV shows in HD without handing over their hard-earned cash
`to the cable companies.
`
`5
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`

`

`Case 1:21-cv-02081-MKV Document 1 Filed 03/10/21 Page 6 of 20
`
`
`
`CUTTING-EDGE
`TECHNOLOGY
`
`Developed by a NASA
`scientist using military
`technology to capture
`full 1080 HD signals.
`
`Up to 30 mile range,
`operational anywhere in
`the United States (even
`in the countryside!)
`
`Dual band reception-
`VHF/UHF, Antenna has
`20 dB gain.
`
`
`GET YOUR FAVORITE
`CHANNELS IN HD
`
`Watch local news & weather
`
`Watch live sports (NFL, NBA,
`MLB, NHL, NASCAR, Golf,
`College, Tennis, etc)
`
`Watch your favorite TV shows
`
`Receive up to 100+ premium
`channels in HD
`
`
`
`SUPER EASY SETUP
`
`Quick and easy 2-minute setup
`
`Just place the antenna anywhere
`indoors - on the wall, window or
`wherever you please - with
`the included adhesive tape, channel
`scan and you are all set!
`
`The easy installation and compact
`8.3 inch x 4.7 inch design makes it
`great for use in homes, RVs or
`campers while traveling or even in
`your office.
`
`
`– WHAT PEOPLE ARE SAYING –
`
`"I was very skeptical that a flat antenna facing the wrong way, facing an inward
`courtyard, in a city brick 1929 building had a chance of finding any broadcast
`signal. To my great surprise, I am now enjoying over 55 crystal clear HD
`channels ... This is a WINNER! Bye bye Cable!"
`-Jerry Hopkins from Indianapolis, IN
`
`
`
`
`
`"Bought this for my daughter, no trouble with installation, works great for her
`location and now has all of her favorite channels to watch for free. Great product,
`it really works great!"
`
`-Angela Kelley from Palo Alto, CA
`
`
`"I live in the city and wasn't sure that this antenna would perform after being
`disappointed with others I had tried but this antenna delivers what it promises. I
`get 46 clear channels. What a deal! It's goodbye to cable and I'll be saving about
`$1000 a year.
`
`-Robert Goodwin from Chicago, IL
`
`Are you ready to cut the cord and stop paying a monthly cable bill?
`(Take advantage of our one-time fire sale – it’s ending soon!)
`
`Exhibit A. This web page was disseminated from February 2018 through June 2018. A nearly
`
`identical version of this web page promoting the SkyLink TV Antenna was disseminated from
`
`June 2018 through February 2019. A nearly identical version of this web page promoting the
`
`Tilt TV Antenna, except that “Receive up to 100+ premium channels in HD” was replaced with
`
`“Receive channels in HD,” was disseminated from January 2019 through March 2019.
`
`
`
`6
`
`

`

`Case 1:21-cv-02081-MKV Document 1 Filed 03/10/21 Page 7 of 20
`
`B.
`
`SkyWire TV Antenna Web Page
`
`SKYWIRETV
`ANTENNA
`…
`
`Never Pay For Cable Or Subscriptions Again? This
`Device Allows You To Watch Your Favorite Channels
`For Free
`
`With Over 1.5 Million Units Sold Worldwide,
`Here Is The Best Solution To Watch Your Favorite Channels, Programs And
`Movies
`For Free!
`
`We all know how frustrating invoices and subscriptions can be.
`
`We pay for cable, for Netflix, for movies and sports on demand … it accumulates.
`
`And of course, there are all the electronics. The receiver, the AppleTV, the Firesticks,
`and the DVD player are often expensive.
`
`It is no wonder that more and more people are looking for cheaper and simpler ways to
`reduce their bills and get rid of all the electronics.
`
`Fortunately, there is a solution to watch HDTV for free and legally!
`
` A
`
` US-based company has just created a new, innovative and inexpensive device that is
`changing the way people use the media.
`
`What is it about ?
`
`From SkyWire TV Antenna, a new antenna capable of receiving up to 100 channels or
`more completely free and legally.
`
`Developed with military technology, the SkyWire TV Antenna uses a design that offers a
`more reliable and technologically advanced antenna than almost any other on the market.
`That means more channels, movies, and shows for free, without any subscription and in a
`completely legal way.
`
`How it works ?
`
`It’s easy! Simply plug your SkyWire TV Antenna into any TV. All connections are
`included in the package. Then turn your TV on, run a channel scan from the Menu of
`your TV and within 10 seconds, you can be watching your favorite shows.
`
`7
`
`
`
`
`
`

`

`Case 1:21-cv-02081-MKV Document 1 Filed 03/10/21 Page 8 of 20
`
`
`But how can you watch all this for free? The secret lies behind a law that no television
`operator in the world wants you to know. This specifies that they must provide, in
`addition to the conventional signal, a signal per radio. In order not to break the law, all
`operators therefore broadcast this signal.
`
` …
`
`
`
`
`SkyWire TV Antenna launch video
`
`[Embedded video with superimposed text that included “SKYWIRE TV
`ANTENNA,”“DIGITAL INDOOR TV ANTENNA” “Get Instant Access to Live TV
`Programs in Your Area For FREE” with logos of ten television networks displayed,
`“Watch LOCAL NEWS,” “Watch SPORT EVENTS,” “Watch FAVORITE SHOWS,”
`“Cut-the-Cord Today with THE ULTIMATE INDOOR ANTENNA,” and “ENSURES
`CRYSTAL CLEAR RECEPTION.” The video closes with the prominently displayed
`words “WATCH FREE CABLE TV!” next to a picture of the antenna.]
`
`But is it legal?
`
`YES ! Without a doubt. Its use is entirely legal since the television operators themselves
`distribute the signal completely free of charge.
`
`Obviously television operators do not like it at all, but they can not [sic] do anything
`about it. They are required by law to maintain the signal. And now, with advanced
`antennas like SkyWire TV Antenna, you can finally capture it.
`
` …
`
`
`
`
`[Posts that appear to be social media postings discussing the antenna]
`
`Gabrielle Sharp
`Wow it looks amazing, is anyone already tested? [sic]
`Like Reply [like symbol] 1 1 h
`
`
`
`June Holmes
`Yes, my husband and I are fans! Super easy to navigate and you can watch
`everything you want.
`Like Reply [like symbol] 2 24 min
`
`Exhibit B. This web page was disseminated from February 2018 through June 2018. A nearly
`
`identical version of this web page promoting the SkyLink TV Antenna was disseminated from
`
`
`
`8
`
`

`

`Case 1:21-cv-02081-MKV Document 1 Filed 03/10/21 Page 9 of 20
`
`June 2018 through March 2019. A nearly identical version of this web page promoting the Tilt
`
`TV Antenna was disseminated from January 2019 through March 2019.
`
`
`
`SkyLink TV Antenna Web Page
`C.
`Never Pay For Cable Or [depiction of SkyLink TV antenna superimposed
`Subscriptions Again! over image of couple watching television]
`
`This Device Allows You To Watch Your
`Favorite Channels For Free
`
`With Over 1.5 Million Units Sold
`Worldwide, Here Is The Best Solution
`To Watch Your Favorite Channels,
`Programs And Movies For Free!
`
`
`[picture JOHN ANDERSON [date] TRENDING
` of man] [numbers of Facebook Likes, Tweets, and Pin It Shares] 8,974 VIEWS
`
` …
`
`
`
`
`We all know how frustrating invoices and subscriptions can be.
`
`We pay for cable, for Netflix, for movies and sports on demand … it accumulates.
`
`And of course, there are all the electronics. The receiver, the AppleTV, the Firesticks,
`and the DVD player are often expensive.
`
`It’s no wonder that more and more people are looking for cheaper and simpler ways to
`reduce their bills and get rid of all the electronics.
`
`Fortunately, there is a solution to watch HDTV for free and legally!
`
`
`
`RELATED ARTICLES
`
`[four thumbnail pictures and article titles]
`
`
`
`
`
`JOIN OUR NEWSLETTER
`Don’t miss out. Subscribe to our weekly
`newsletter
`Your Email Submit
`
`
`CUSTOMER REVIEWS
`
` [photo] Jerry Hopkins
` from Indianapolis, IN
` [five stars]
`“I was very skeptical that a flat antenna
`facing the wrong way, facing an inward
`courtyard, in a city brick 1929 building
`had a chance of finding any broadcast
`signal. To my great surprise, I am now
`enjoying over 55 crystal clear HD
`channels ... This is a WINNER! Bye bye
`Cable!”
`
`[photo] Angela Kelley
` from Palo Alto, CA
` [five stars]
`“Bought this for my daughter, no trouble
`with installation, works great for her
`location and now has all of her favorite
`channels to watch for free. Great product,
`it really works great!”
`
`
` A
`
` US-based company has created a new, innovative and inexpensive device that is
`
`changing the way people use the media.
`
`
`What is it about?
`
`From SkyLink Antenna, a new antenna capable of receiving up to 100 channels or
`more completely free and legally.
`
`Developed with military technology, the SkyLink TV Antenna uses a design that offers
`a more reliable and technologically advanced antenna than almost any other on the
`market. That means more channels, movies, and shows for free without any
`subscription and in a completely legal way.
`
`
`
`9
`
`

`

`Case 1:21-cv-02081-MKV Document 1 Filed 03/10/21 Page 10 of 20
`
`
`How it works?
`
`It’s easy! Simply plug your SkyLink TV Antenna into any TV. All connections are
`included in the package. Then turn your TV on, run a channel scan from the Menu of
`your TV and within 10 seconds, you can be watching your favorite shows.
`
`But how can you watch all this for free? The secret lies behind a law that no television
`operator in the world wants you to know. This specifies that they must provide, in
`addition to the conventional signal, a signal per radio. In order not to break the law, all
`operators therefore broadcast this signal.
`
`…
`
`[photo] Robert Goodwin
` from Chicago, IL
` [five stars]
`“I live in the city and wasn't sure that this
`antenna would perform after being
`disappointed with others I had tried but
`this antenna delivers what it promises. I
`get 46 clear channels. What a deal! It’s
`goodbye to cable and I’ll be saving about
`$1000 a year.
`
`
`
`
`
`SkyLink TV Antenna launch video
`
`[Embedded video with superimposed text that included “SKYLINK TV
`ANTENNA,”“DIGITAL INDOOR TV ANTENNA” “Get Instant Access to Live TV
`Programs in Your Area For FREE”,with logos of ten television networks displayed,
`“Watch LOCAL NEWS,” “Watch SPORT EVENTS,” “Watch FAVORITE SHOWS,”
`“Cut-the-Cord Today with THE ULTIMATE INDOOR ANTENNA,” and “ENSURES
`CRYSTAL CLEAR RECEPTION.” The video closes with the prominently displayed
`words “WATCH FREE CABLE TV!” next to a picture of the antenna.]
`
`But is it legal?
`
`YES ! Without a doubt. Its use is entirely legal since the television operators
`themselves distribute the signal completely free of charge.
`
`Obviously television operators do not like it at all, but they can not [sic] do anything
`about it. They are required by law to maintain the signal. And now, with advanced
`antennas like SkyWire TV Antenna, you can finally capture it.
`…
`
`Start watching your favorite channels for free …
`…
`
`COMMENTS
`347 comments
`…
`
`[photo] Segio Lima de Oliveira
` I just received it! I can really watch all the channels! I have
` already bought one for my mother. Thank you for this great
` product!
` Like Reply [6 likes] 1 h
`
`
`
`
`
`
`
`
`
`
`Exhibit C. This web page was disseminated from November 2018 through January 2019. A
`
`nearly identical version of this web page promoting the Tilt TV Antenna was disseminated from
`
`January 2019 through March 2019. A version of this web page in which the “John Anderson”
`
`
`
`10
`
`

`

`Case 1:21-cv-02081-MKV Document 1 Filed 03/10/21 Page 11 of 20
`
`byline appears directly under the headline, “Never Pay For Cable Or Subscriptions Again! This
`
`Device Allows You To Watch Your Favorite Channels For Free,” was also disseminated from
`
`January 2019 through March 2019.
`
`D.
`
`SkyLink TV Antenna Web Page
`
`SkyLink
`Antenna
`
`Home > Trending> Television >
`
`New York: Seniors Are Taking Advantage of New 2018 Rule
`That Allows Americans To Get FREE TV In HD, Causing
`Millions To Cancel Cable
`
`[Date] By John Wilson
`
` …
`
`
`
`If you could stop paying for cable or satellite TV and still get all of your favorite TV
`channels in HD for FREE, would you do it? Millions of senior citizens are taking
`advantage of a brand new rule in 2018 that allows certain regions to access free TV.
`
`Cable and satellite TV can be a big monthly charge, and they’re going up around 6
`percent per year. If you’re fed up paying high bills to watch TV or find that you don’t
`use all the channels you pay for, there’s a new rule that allows you to watch all of your
`favorite channels in HD for free.
`
`The truth is, anybody who is paying for a cable or satellite subscription is getting ripped
`off. The average American spends $850 per year on cable or satellite TV alone and is set
`to increase to over $1000 per year in another 3 years.
`
`That’s expensive and quite simply, a big waste of money.
`
`Thankfully, if you live in an area where this new rule went into effect, you no longer
`need to give your hard earned money away to the big cable companies. As a result,
`Americans are now cutting the cord on their cable companies in record numbers, saving
`them thousands of dollars.
`
`The new 2018 rule cable companies don’t want you to know about…
`
`Up until 2018, cable companies were allowed to “scramble” their channels so that the
`general public could not access them without paying for the service. However, that all
`11
`
`
`
`
`
`
`
`

`

`Case 1:21-cv-02081-MKV Document 1 Filed 03/10/21 Page 12 of 20
`
`changed in 2018 with the government ruling that TV signals are public property and
`“belong to the people”. Ever since the rule went into effect, the big cable companies are
`panicing [sic] because many Americans will no longer need to pay for cable or satellite tv
`to get their favorite channels in HD. As long as you live in a publicly broadcasted area, it
`is now possible to watch all of your favorite channels for free with a TV antenna.
`
`However, not all TV antenna’s [sic] will work. In an attempt to block the public from
`picking up their TV signals, the cable companies are broadcasting their signals at very
`low frequencies since most antenna’s will not be able to pick them up. The trick is to get
`an antenna that can reliably pick up these low frequency signals, and up until now, there
`hasn’t been an antenna advanced enough to pick these signals up reliably. (There are
`other antenna’s [sic] out on the market, but they fail miserably in comparison to this one)
`
`Developed by a NASA engineer using military technology, the SkyLink HDTV Antenna
`was just released this year so that it could specifically pick up these signals reliably and
`has been hailed as the only “super” HDTV antenna. It uses a discrete mud flap modern
`design which makes it the most reliable and technologically advanced antenna to hit the
`market today. It can pick up signals out to 60 miles with no problem (as well as the low
`frequency signals) to enable you to receive crystal-clear HD channels.
`
`We tested it out for ourselves …
`
`When we first heard about this new “super” HDTV antenna, we were a bit skeptical. So,
`we decided to buy one ourselves and test it out.
`
`The antenna is supposed to work flawlessly in both the city and the country side, but for
`our purposes, we drove out to the country side to conduct our test.
`
`Setup was fast and easy. We simply plugged it in to the TV and stuck the antenna to the
`window (you don’t have to stick it to the window, you can stick it anywhere you want).
`…
`
`What happened next was astonishing …
`
`We turned the TV on and found ourselves staring back at an incredibly clear channel in
`HD. We kept flipping through channels and to our amazement, every channel was crystal
`clear. Best of all, we received almost all of the most popular channels you would get
`with cable.
`
`All in all, we were able to access 68 channels in 1080 HD. It was as if we were getting
`free cable or satellite TV.
`
`Now, before you cancel your cable or satellite subscription, it is important to note that
`there were a few some channels that we could not get with the antenna. But in the end,
`
`
`
`12
`
`

`

`Case 1:21-cv-02081-MKV Document 1 Filed 03/10/21 Page 13 of 20
`
`we were able to receive about 85% of the of same channels and more importantly, they
`were the most popular channels that people actually watch.
`
`The verdict: If you want to save thousands of dollars and stop paying for cable or
`satellite tv, and don’t mind losing out on a few random channels you probably won’t even
`watch, you should try the SkyLink HDTV Antenna. …
`
`*Update: [date] – Since the creation of the 2018 program earlier this year, the HDTV
`Antenna is so popular it has sold over 1.8 million units. To help seniors take advantage
`of this opportunity, they’ve decided to offer a one-time discount of 50% off to seniors.
`…
`
` 9
`
` Comments
`
`
`[“Add comments” box]
`
`Roxi Overo Tyler, Texas
`Has anybody compared this antenna to other antenna’s [sic] out there on the market?
`…
`
`
`Cheryl Rackers Perry High School, Perry, GA
`Yes! There are so many antenna’s [sic] on the market that simply don’t work, and
`trust me, I’ve tested my fair share of antennas! THIS antenna ACTUALLY
`WORKS and is head and shoulders above all the other ones on the market.
`…
`Wilma Kingsleigh Indiana University Kokomo
`It looks crazy, but that antenna works as well as a cable hookup
`
` …
`
`
`
`
`Mandy Simmons Chicago, Illinois
`I just received mine in the mail today, took about 4 days to arrive. It is really very easy
`and simple to use. I am not tech savvy at all and it was a breeze to setup. When I initially
`scanned for channels, my tv was able to detect 68 channels, but only about 50 or so
`channels had strong enough signals to pick up reliably. Overall, I really like this antenna
`especially since I don’t have to pay for cable anymore.
`
`
`Exhibit D. This web page was disseminated from June 2018 through February 2019. A nearly
`
`identical version of this web page promoting the Tilt TV Antenna was disseminated from
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`January 2019 through March 2019.
`
`E.
`
`TV Scout Amplifier Web Page
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`POWERFUL RANGE EXTENSION FOR YOUR TV Scout
`
`
`
`13
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`

`

`Case 1:21-cv-02081-MKV Document 1 Filed 03/10/21 Page 14 of 20
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`ANTENNA!
`
`
`Pull in MORE STATIONS in crystal clear HDTV when you add the TV Scout Amplifier
`to your deal! Remember, you will get more FREE Stations and increase your range up to
`50 MILES!
`
`You won’t pay $80.00 for this powerful amplifier. Not even $60.00. If you buy now and
`add it to your order, you’ll pay the crazy low price of $32.00 per unit!
`
`[Depiction of television screen showing four scenes, including ones from Game of
`Thrones, which appears on HBO, Westworld, which appears on HBO, Walking Dead,
`which appears on AMC, and Pretty Little Liars, which appeared on ABC Family]
`
`ADD ONE x1 TV Scout Amplifier to your Order
`
`TVScout
`amplifier
`
`
`
`[Depiction of SkyLink TV Amplifier] [Depiction of split screen “before” and
`“after” images from Game of Thrones with
`the before side very fuzzy]
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`Double Your Signal
`Double Your Distance
`Get More Free Channels!
`
`
`Pull in more free TV Stations - Increase range up to 50 miles! Change fuzzy stations
`into crystal-clear stations. It’s the perfect combination with your TV Scout to get the
`optimum pleasure of watching everything come in FREE! So easy to use. Just connect
`one wire between your TV Scout and your TV set and you are READY TO GO! GRAB
`THIS NOW AT A LOW LOW PRICE!!
`
`Exhibit E. This web page was displayed to consumers who were in the process of ordering the
`
`TV Scout Antenna. It was disseminated from March 2017 through April 2019. A nearly
`
`identical version of this web page promoting the SkyWire TV Amplifier was disseminated from
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`July 2017 through July 2018. A nearly identical version of this web page promoting the SkyLink
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`TV Amplifier was disseminated from June 2018 through March 2019. A Spanish language
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`version of this web page promoting the TV Scout Antenna, attached as Exhibit F, was
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`disseminated from May 2017 through April 2019.
`
`
`
`14
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`

`

`Case 1:21-cv-02081-MKV Document 1 Filed 03/10/21 Page 15 of 20
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`16.
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`In creating web pages promoting Wellco TV Antennas, Defendants copied
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`consumer endorsements from websites promoting competing antenna products.
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`17. When potential customers emailed Wellco inquiring about the channels they
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`would receive, a Wellco representatives would often respond by email:
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`We cannot guarantee specific channel reception but we can tell you what our current
`customers have reported back to us. Customers who live in remote parts of the world
`may receive as few as 10 channels whereas customers in more densely populated, urban
`areas, receive upwards of 100 channels. We hope this information helps and look
`forward to your business.
`
`Wellco representatives wrote this to over 15,000 potential customers.
`
`
`Based on the facts and violations of law alleged in this Complaint, the FTC has
`
`18.
`
`reason to believe that Defendants are violating or are about to violate laws enforced by the
`
`Commission because, among other things: Defendants engaged in their unlawful acts and
`
`practices repeatedly over a period of two years; Defendants engaged in their unlawful acts and
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`practices knowingly; Defendants continued their unlawful acts or practices despite knowledge of
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`thousands of consumer complaints; and Defendants stopped their unlawful conduct only after
`
`they received a Civil Investigative Demand from the FTC.
`
`VIOLATIONS OF THE FTC ACT
`
`19.
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`Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), prohibits “unfair or deceptive acts
`
`or practices in or affecting commerce.”
`
`20. Misrepresentations or deceptive omissions of material fact constitute deceptive
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`acts or practices prohibited by Section 5(a) of the FTC Act.
`
`
`
`15
`
`

`

`Case 1:21-cv-02081-MKV Document 1 Filed 03/10/21 Page 16 of 20
`
`Count I
`
`False or Unsubstantiated Efficacy Claims
`
`21.
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`In numerous instances in connection with the advertising, marketing, promotion,
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`offering for sale, or sale of Wellco TV Antennas and Amplifiers, Defendants have represented,
`
`directly or indirectly, expressly or by implication, that:
`
`A.
`
`The SkyWire, SkyLink, and Tilt TV Antennas are the #1 rated indoor
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`HDTV antenna in America;
`
`B.
`
`The SkyWire, SkyLink, and Tilt TV Antennas enable consumers to
`
`receive more channels than most other TV antennas on the market;
`
`C.
`
`The SkyWire, SkyLink, and Tilt TV Antennas enable consumers to stop
`
`paying for cable or satellite TV subscription and still receive all of their
`
`favorite TV channels;
`
`D.
`
`The SkyWire, SkyLink, and Tilt TV Antennas enable consumers to
`
`receive signals that they could previously only receive via cable TV
`
`systems or other subscription services;
`
`E.
`
`Substantial portions of users of the SkyWire and SkyLink TV Antennas
`
`receive 100+ premium channels in HD;
`
`F.
`
`Substantial portions of users of the SkyWire, SkyLink, and Tilt TV
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`Antennas receive forty-six or more clear channels;
`
`G.
`
`Users of the TV Scout, SkyWire, SkyLink, and Tilt TV antennas receive a
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`minimum of ten channels, regardless of whether they lived in remote parts
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`of the world or densely populated urban areas;
`
`
`
`16
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`

`

`Case 1:21-cv-02081-MKV Document 1 Filed 03/10/21 Page 17 of 20
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`H.
`
`The TV Scout, SkyWire, and SkyLink TV Amplifiers substantially
`
`increase the number of stations received with the corresponding Wellco
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`TV Antenna, including more distant stations; and
`
`I.
`
`With the TV Scout, SkyWire, and SkyLink TV Antennas and the
`
`corresponding Wellco TV Amplifier, consumers receive cable or
`
`subscription channels, including HBO and AMC.
`
`22.
`
`The representations set forth in Paragraph 21 are false or misleading, or were not
`
`substantiated at the time the representations were made.
`
`23.
`
`Therefore, the making of the representations as set forth in Paragraph 21 of this
`
`Complaint constitutes a deceptive act or practice, in or affecting commerce, in violation of
`
`Section 5(a) of the FTC Act, 15 U.S.C. § 45(a).
`
`Count II
`
`False Adve