FTC Sues and Settles with Ads4Dough in One DayWritten by Pace Lattin
September 1, 2012 # 5:27 pm # Industry News, Specials # 7 Comments
ADS4Dough is one of the first companies to settle with the FTC over a plethora of secret investigations that have been happening behind the scenes in our industry. They had been under “investigation” for the last two years according to Jason Akatiff, the owner and CEO, and had decided that it wasn’t worth fighting the charges. According to Ads4Dough, it would probably cost them more money than what they would have to pay. So they came to an agreement with the FTC which allowed them to be sued, and have the case settled on the same exact day: not making for terribly exciting news nor a long court battle.
What is most interesting about this lawsuit, and ADS4Dough’s response is how forthright they were about the investigations: it wasn’t much a secret in the industry, and they had told their large affiliates and partners that it was happening. That had revealed to many that their legal position was that they were just running offers of a few clients, and those clients were responsible for the content of the advertising — not them. Instead of trying to hide and deny, they took a very proactive stance and even were the first to announce the settlement to their affiliates and publishers. We spoke to Akatiff briefly while he was on vacation in Europe, and he pointed out that this was just a drop in the bucket versus their overall income, and would have no affect on their day-to-day activities.
According to Akatiff:
….when they offered us the opportunity to settle for the same amount as the legal fees would have cost we carefully considered our options. After playing out all scenarios, settling with the FTC was the only thing that made logical sense for the security of our affiliates, and the future of our company.
As most of you know we’ve always been an innovator in the industry. Long before we ever saw anything from the FTC we were already re-tooling our business to move away from things that had potential problems… To support this new direction, we’ve recently added 5 new US based employees as well as a development office in Krakow, Poland. Also, our current growth period isn’t over, so if you or anyone you know are looking for an opportunity to work with a strong, industry leading company please contact us today.
According to insiders within the FTC, several other companies will be announcing similar settlements in the next few months.