Business ProfileforTraffic Jam Events LLC

Gov. Action
On June 17, 2020 The Federal Trade Commission is taking legal action to halt a scheme that allegedly deceived consumers with mailers supposedly directing them how to obtain federal COVID-19 stimulus benefits, which instead lured them to a used car sale.

The mailers sent by Traffic Jam Events, LLC and its owner, David J. Jeansonne II, were labeled "IMPORTANT COVID-19 STIMULUS DOCUMENTS" and directed consumers to "relief headquarters" to "claim these stimulus incentives," the FTC alleged in its lawsuit against the company and Jeansonne.

The mailers led consumers to believe they could obtain stimulus relief temporarily in person, making multiple references both to the coronavirus pandemic and to a supposed economic stimulus program similar to the program enacted under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the FTC alleged.

According to the complaint, the defendants' mailers referred to an address in Florida as "relief headquarters" and "designated local headquarters," telling consumers that they must "must claim these stimulus incentives at your designated temporary 10-day site..." The mailers also include a likeness of the Great Seal of the United States, as well as a mock check, labeled "Stimulus Relief Program." When consumers arrived, however, they only found a lot hosting a car sale.

The FTC's complaint notes that the defendants have been the subject of prior law enforcement actions in Kansas and Indiana, and that they are currently facing action from the state of Florida related to these mailers.

The FTC's suit asks the court to stop the defendants' actions and to require them to provide redress to consumers. The Commission vote authorizing the staff to file the complaint was 4-0-1 with Commissioner Rebecca Kelly Slaughter not participating. The complaint was filed in the U.S. District Court for the Eastern District of Louisiana.

The FTC would like to thank the Florida Office of the Attorney General for its substantial assistance in this matter.

NOTE: The Commission files a complaint when it has "reason to believe" that the named defendants are violating or are about to violate the law and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.

On October 25, 2021 Final Orders: It is Ordered that TRAFFIC JAM EVENTS, LLC, and DAVID J. JEANSONNE II are to Cease and desist and must not participate in any business which involves, in whole or in part, advertising, marketing, promoting, distributing, offering for sale or lease, or selling or leasing motor vehicles.
Must not misrepresent, or assist others in misrepresenting, expressly or by implication, any material fact, including the following:
Financial assistance or relief from the government, any prize, sweepstakes, lottery, or giveaway; any affiliation, association with, endorsement, sponsorship, or approval by the government; and the nature, value, or amount of any incentive and all material restrictions, limitations, or conditions applicable to the purchase, receipt, or use of any product or service.
In connection with any advertisement for any extension of consumer credit, shall not:
State, expressly or by implication: The amount or percentage of any down payment, the number of payments or period of repayment, the amount of any payment, or the amount of any finance charge, without disclosing Clearly and Conspicuously all of the following terms:
The amount or percentage of the down payment, the terms of repayment and the annual percentage rate, using the term "annual 4 percentage rate" or the abbreviation "APR." If the annual percentage rate may be increased after consummation of the credit transaction, that fact must also be disclosed; or
A rate of finance charge without stating the rate as an "annual percentage rate" or the abbreviation "APR," using that term, or fail to comply with Regulation Compliance Reports and Notices:
One year after the issuance date of this Order, TRAFFIC JAM EVENTS, LLC, and DAVID J. JEANSONNE II must submit a compliance report, sworn under penalty of perjury, in which:
Each Respondent must: identify the primary physical, postal, and email address and telephone number, as designated points of contact, identify all businesses by all of their names, telephone numbers, and physical, postal, email, and Internet addresses, describe the activities of each business, including the products and services offered, the means of advertising, marketing, and sales, and the involvement, describe in detail whether and how in compliance with each Provision of this Order, including a discussion of all of the changes the Respondent made to comply with the Order; and provide a copy of each Acknowledgment of the Order obtained, unless previously submitted to the Commission.
Must create certain records for 20 years after the issuance date of the Order, and retain each such record for 5 years. Specifically, must create and retain the following records:
accounting records showing the revenues from all products or services sold, the costs incurred in generating those revenues, and resulting net profit or loss, personnel records showing, for each person providing services in relation to any aspect, whether as an employee or otherwise, that person's: name; addresses; telephone numbers; job title or position; dates of service; and (if applicable) the reason for termination, copies of all consumer complaints and refund requests, whether received directly or indirectly, such as through a third party, and any response, and for 5 years from the date received, copies of all subpoenas and other communications with law enforcement, all records, whether prepared by or on behalf of Respondents, that demonstrate non-compliance OR tend to show any lack of compliance by Respondents with this Order, all records necessary to demonstrate full compliance with each provision of this Order, including all submissions to the Commission.
Order Effective Dates is final and effective upon the date of its publication on the Commission's website (ftc.gov) as a final order.
This Order will terminate on October 25, 2041, or 20 years from the most recent date that the United States or the Commission files a complaint (with or without an accompanying settlement) in federal court alleging any violation of this Order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of:
Any Provision in this Order that terminates in less than 20 years; This Order's application to any Respondent that is not named as a defendant in such complaint; and This Order if such complaint is filed after the Order has terminated pursuant to this Provision. Provided, further, that if such complaint is dismissed or a federal court rules that the Respondent did not violate any provision of the Order, and the dismissal or ruling is either not appealed or upheld on appeal, then the Order will terminate according to this Provision as though the complaint had never been filed, except that the Order will not terminate between the date such complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date such dismissal or ruling is upheld on appeal.

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs, and subscribe to press releases for the latest FTC news and resources.

For more information, please visit:
https://www.ftc.gov/news-events/press-releases/2020/06/marketer-used-deceptive-covid-19-stimulus-mailers-lure-consumers?utm_source=govdelivery