Bed bug products can be found all over the internet, many claiming to rid infestations by spraying an infected area.
The Federal Trade Commission filed a complaint against Howard and Bruce Brenner claiming they are 50/50 owners of RMB Group LLC which manufactures and offers for sale a bed bug product called “Rest Easy”. The full complaint (CASE #: 3:12-cv-04632-SC) is listed below:
The FTC is the Plaintiff,
v.
the Defendants:
RMB GROUP, LLC, limited liability company,
HOWARD BRENNER, individually and as an officer of RMB GROUP, LLC,-and
BRUCE BRENNER, individually and as an officer of RMB GROUP, LLC,
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), to obtain permanent injunctive relief, rescission or reformation of contracts, restitution, the refund of monies paid, disgorgement of ill-gotten monies, and other equitable relief for Defendants’ acts or practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), in connection with the advertising, marketing and sale of various pest-control products, which purportedly treat and prevent bed bugs.
JURISDICTION AND VENUE
2. This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331, 1337(a), and 1345, and 15 U.S.C. §§ 45(a) and 53(b).
3. Venue is proper in this district under 28 U.S.C. § 1391(b) and 15 U.S.C. § 53(b).
INTRADISTRICT ASSIGNMENT
4. Defendants have advertised their products in the County of San Francisco.
PLAINTIFF
5. The FTC is an independent agency of the United States Government created by statute. 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.
6. The FTC is authorized to initiate federal district court proceedings, by its own attorneys, to enjoin violations of the FTC Act and to secure such equitable relief as may be appropriate in each case, including rescission or reformation of contracts, restitution, the refund of monies paid, and the disgorgernent of ill-gotten monies. 15 U.S.C. § 53(b).
DEFENDANTS
7. Defendant RMB Group, LLC, is a Florida limited liability company with its principal place of business at 474 SE Southwood Trail, Stuart, FL. RMB roup, LLC, transacts or has transacted business in this district and throughout the United States. At all times material to this Complaint, acting alone or in concert with others, RMB Group, LLC, has advertised, marketed, distributed, or sold pest-control products to consumers throughout the United States.
8. Defendant Howard Brenner is the president of RMB Group, LLC. Howard Brenner also is a fifty percent owner in the company. At all times material 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 RMB Group, LLC, including the acts and practices set forth in this Complaint. Howard Brenner knew or should have known that the acts and practices alleged herein were occurring and were deceptive. Howard Brenner, in connection with the matters alleged herein, transacts or has transacted business in this district and throughout the United States.
9. Defendant Bruce Brenner is the chief operating officer of RMB Group, LLC. Bruce Brenner also is a fifty percent owner in the company. At all times material 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 RMB Group, LLC, including the acts and practices set forth in this Complaint. Bruce Brenner knew or should have known that the acts and practices alleged herein were occurring and were deceptive. Bruce Brenner, in connection with the matters alleged herein, transacts or has transacted business in this district and throughout the United States.
COMMERCE
10. At all times material 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
DEFENDANTS’ PRODUCTS
11. Since at least 20l0, and continuing thereafter, Defendants have manufactured, advertised, promoted, offered for sale, sold, or distributed “Rest Easy” to consumers throughout the United States.
12. Rest Easy purportedly consists of a liquid solution whose active ingredients are sodium laurel sulfate, cinnamon oil, lemongrass oil, peppermint oil, and clove oil.
13. Consumers have purchased Rest Easy from various third parties, such as Bed Bath & Beyond, Walgreens, and Big Lots.
14. The retail price of Rest Easy has ranged from $6.99 to $9.99 for the 16 oz. trigger bottle, $5.00 to $7.99 for the 2 oz. twin pack, and $50.00 for the gallon jug.
DEFENDANTS’ ADVERTISEMENTS
15. To induce consumers to purchase Rest Easy products, Defendants have created, prepared, disseminated, or caused to be disseminated, advertisements and other marketing materials, including, but not limited to, the attached Exhibits A to D. These materials contain, among other things, the following statements:
a. 2 oz. Twin Pack Packaging (Exhibit A) and 16 oz. Trigger Bottle Packaging (Exhibit B)
“Rest Easy
Kills & Repels Bed Bugs
….
Rest Assured
Bed Bugs No More!
….
Spray around bed to create a barrier.”
b. [website], accessed 12/28/2011
(Exhibit C) (excerpts from website)
“Rest Easy
Kills & Repels Bed Bugs”
The webpage features a testimonial, which contains the following statements: “I have used Rest Easy for about a year now. I LOVE this product because it makes me feel certain that I am preventing bedbugs from becoming an issue in my bedroom and in my home. The clear mist that I spray around my bed and also on the floor area around my bed seems to kill anything that would come into that area . … I want to make sure that my living experience is not affected by [bed bugs]. I would use Rest Easy no matter where I lived or when I travel. Really has taken the worry away from having bedbugs while living in NYC.”
“FREQUENTLY ASKED QUESTIONS
….
Q: Can I spray it on my bed?
A. Spraying Rest Easy on a bed is not necessary but spraying around the bed to create a barrier is recommended….
Q. How does Rest Easy work?
A. Unlike pesticides and insecticides that insects ingest, bed bugs are killed with Rest Easy by having the oils attach itself [sic] to the body of the bed bugs [sic] and dissolves [sic] the shell.”
“PRODUCTS
2 oz. Twin Pack
…Now there’s no need to run over your bed at the hotel with a fine tooth comb. Simply follow the directions and Rest Easy!
…Use for peace of mind at home or when traveling!
16 oz. Trigger Sprayer
Keep in your home to keep potential infestations at bay. Don’t let your home be overrun by these obnoxious pests!
….
Gallon Jugs
For commercial use in apartments, hotels, and more. Never have to deal with another tenant complaint and clear away the looming threat of lawsuits. Don’t let your business be a victim of a growing and serious concern!”
“WHY REST EASY?
….
· Rest Easy is HIGHLY effective, killing 90% of bedbugs within 2 seconds of contact, and the rest within 30 minutes (a study by one of the two leading universities on bedbugs indicates that pyrethrins / pyrethroids are NOT effective)
· Rest Easy, while providing a repellency effect as long as the vapors from treatment continue to give off a cinnamon scent (up to one week)”
c. [website], accessed 12/28/2011 (Exhibit D: screen shots of video appearing on website)
This webpage features a video at the top of the page, which contains the following statements: “Did you Know … Bed bugs can survive up to IO months without feeding. They can lay between 5 and 12 eggs per day… per bug! Why take a chance on being their next meal when you travel? Or having your business shut down because somebody unwittingly brought them in? Rest Easy … is a real GREEN All-Natural, Non-Pesticide, designed as a preventative for just these potential problems. Rest Easy And rest assured, bed bugs no more!”
VIOLATIONS OF THE FTC ACT
16. Section S(a) of the FTC Act, 15 U.S.C. § 45(a), prohibits “unfair or deceptive acts or practices in or affecting commerce.”
17. Misrepresentations or deceptive omissions of material fact constitute deceptive acts or practices prohibited by Section 5(a) of the FTC Act.
Count I
Unsubstantiated Bed Bug Claims
18. Through the means described in Paragraph 15, Defendants have represented, directly or indirectly, expressly or by implication, that:
a. Rest Easy kills bed bugs;
b. Rest Easy repels bed bugs; and
c. By spraying Rest Easy around a bed, a consumer can create a barrier against bed bugs.
19. The representations set forth in Paragraph 18 were not substantiated at the time they were made.
20. Therefore, the making of the representations set forth in Paragraph 18 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). 5269707065642066726f6d204c6177737569747352657669657765642e636f6d
CONSUMER INJURY
21. Consumers have suffered and will continue to suffer substantial injury as a result of Defendants’ violations of the FTC Act. In addition, Defendants have been unjustly enriched as a result of their unlawful acts or practices. Absent injunctive relief by this Court, Defendants are likely to continue to injure consumers, reap unjust enrichment, and harm the public interest.
THIS COURT’S POWER TO GRANT RELIEF
22. Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), empowers this court to grant injunctive and such other relief as the Court may deem appropriate to halt and redress violations of any provision of law enforced by the FTC. The Court, in the exercise of its equitable jurisdiction, may award ancillary relief, including rescission or reformation of contracts, restitution, the refund of monies paid, and the disgorgement of ill-gotten monies, to prevent and remedy any violation of any provision of law enforced by the FTC.
PRAYER FOR RELIEF
Wherefore, Plaintiff FTC, pursuant to Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), and the Court’s own equitable powers, requests that the Court:
a. Enter a permanent injunction to prevent future violations of the FTC Act by Defendants;
b. Award such relief as the Court finds necessary to redress injury to consumers resulting from Defendants’ violations of the FTC Act, including, but not limited to, rescission or reformation of contracts, restitution, the refund of monies paid, and the disgorgement of ill-gotten monies; and
c. Award Plaintiff the costs of bringing this action, as well as such other and additional relief as the Court may determine to be just and proper.
Respectfully submitted,
WILLARD K. TOM
General Counsel
Dated: 9/5/2012
KERRY O’BRIEN
LINDA K. BADGER
Federal Trade Commission
901 Market Street, Suite 570
San Francisco, CA 94103
Phone: 415-848-5100
Fax: 415-848-5184
kobrien@ftc.gov
lbadger@ftc.gov
Attorneys for Plaintiff
FEDERAL TRADE COMMISSION
Case Detail
WILLARD K. TOM
Genera1 Counsel
KERRY O’BRIEN, (Calif. Bar No. 149264)
LINDA K. BADGER (Calif. Bar No. 122209)
Federal Trade Commission
901 Market Street, Ste. 570
San Francisco, CA 94103
(415) 848-5100 (voice)
(415) 848-5184 (fax)
kobrien@ftc.gov
lbadger@ftc.gov
Attorneys for Plaintiff
Federal Trade Commission
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
San Francisco Division
CV 12 4632
COMPLAINT FOR PERMANENT INJUNCTION AND OTHER EQUITABLE RELIEF
FEDERAL TRADE COMMISSION,
Plaintiff,
v.
RMB GROUP, LLC, limited liability company,
HOWARD BRENNER, individua11y and as an officer of RMB GROUP, LLC,-and
BRUCE BRENNER, individually and as an officer of RMB GROUP, LLC,
Defendants.
CASE EXHIBITS A & B
Below is the FTC’s Exhibit A showing Rest Easy bed bug spray marketed by the RMB Group, LLC, in a 2 oz twin pack front and back.
Exhibit A
Below is the FTC’s Exhibit B showing Rest Easy 16oz bed bug spray front and back.
Exhibit B
Results of Complaint
The FTC proposed this order for permanent injection against the company and their bed bug repellent.
Looking for the official document, you can read it here.