March 7, 2014
Courtesy of Stuart F. Delery, Assistant Attorney General for the Civil Division Those who violate consumer protection laws can cause devastating harm, often hitting our most vulnerable consumers the hardest. Victims of fraud, misrepresentation, and unsafe drug manufacturing and food production practices can lose significant amounts of hard-earned and much-needed money. But they also face a loss of trust in the marketplace, a loss of confidence in products we need like medicine or food, and a loss of security when we fall victim to a scam. That is why it is critical to expose these insidious practices and hold perpetrators accountable. Or as President Obama said in his proclamation of National Consumer Protection Week: “[O]ur Nation's economy is only as strong as its people, and we recommit to fostering a sense of basic fairness in our marketplace.” For that reason, I am particularly proud of the work the Justice Department’s Consumer Protection Branch, a part of the Civil Division, is doing to enforce federal consumer protection laws and protect our communities. We employ all of the tools at our disposal—administrative, civil, and criminal—to protect consumers from the misdeeds that cause harm. But we also know this is a team effort. So, we collaborate with other federal agencies and state partners—sharing information, data and investigative practices where we can–and we engage in vibrant collaboration with the consumer advocacy community. Without effective enforcement, those who prey on consumers will feel free to continue. So, we are fighting fraud and misrepresentation wherever they may lurk, recognizing that violations of the federal consumer protection laws come in all shapes and sizes. We continue to bring consumer cases involving financial fraud, including mortgage fraud, lottery scams, abusive and deceptive debt collection practices, and business-opportunity schemes. We are also pursuing new forms of telemarketing fraud, and immigration services fraud. We enforce laws against products that are unsafe for children – such as toys made with toxic materials. And we continue to investigate the sale of counterfeit pharmaceuticals and violations of the rules for manufacturing and marketing of drugs, medical devices, and food. The following are recent examples of the range of cases we bring to protect our most vulnerable consumers: • We prosecuted two Miami residents who owned and operated companies that targeted Spanish-speaking consumers with a fraudulent telemarketing scheme. The telemarketers lied to consumers about products they would receive and threatened them with false consequences for the failure to pay for shipments of products they did not order and did not want. Both defendants pled guilty and received significant prison sentences; one defendant was sentenced to nine years in prison, the other to ten years in prison. • The recent civil and criminal case against Ranbaxy USA Inc., a subsidiary of Indian generic pharmaceutical manufacturer Ranbaxy Laboratories Limited, demonstrates our commitment to ensuring that pharmaceutical companies comply with current good manufacturing practices so that the drugs they produce have the identity and strength and meet the quality and purity characteristics that they purport to possess. In this ground breaking case—because of its focus on overseas manufacturing —Ranbaxy USA pled guilty to felony charges relating to the manufacture and distribution of certain drugs made at two of Ranbaxy’s manufacturing facilities in India. Ranbaxy agreed to pay a criminal fine and forfeiture totaling $150 million. • A recent injunction against Pennsylvania-based dairy firms and individuals illustrates our vigilance to make sure that the food on our tables is safe to eat. The Consumer Protection Branch obtained a permanent injunction designed to prevent the distribution of foods that contain excessive drug residue in a case concerning the sale of cows that contained antibiotic residues in their edible tissues. Excessive levels of certain drugs in the edible tissues of animals pose a significant public health risk. In this case, the defendants had received numerous warnings from both FDA and the United States Department of Agriculture that their conduct violated the law, and they failed to take steps to correct those violations. Violations of the federal consumer protection laws may not always make the headlines, but they affects millions of Americans each year. As we mark National Consumer Protection Week at the Department of Justice, we reaffirm our commitment to using the authorities we have been given to protect consumers from all manner of harm that these legal violations can cause. The Consumer Protection Branch leads the Justice Department’s efforts to protect the health, safety and economic security of the American consumer. The Branch, together with its partners in the Department’s U.S. Attorney's Offices and in consumer protection agencies, fulfills this mission through civil and criminal enforcement of federal consumer protection statutes across the country. Since 2009, the consumer protection efforts of the Civil Division, working with U.S. Attorneys’ Offices around the country, have led to recoveries of more than $6.7 billion, to over 175 criminal convictions, and to total sentences of confinement exceeding 397 years. Visit www.justice.gov/civil for the latest Civil Division news, www.justice.gov/civil/cpb/cpb_home.html to learn more about the Consumer Protection Branch, or follow the Department of Justice (DOJ) on Twitter @TheJusticeDept.
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Updated April 7, 2017