In a shocking turn of events, Hunter Rice, the CEO of Iconic Hearts Holdings Inc., has been accused of perpetrating a massive scheme to deceive and manipulate American children through the popular social media app Sendit.
According to a complaint filed in the U.S. District Court for the Central District of California, the United States alleges that Defendants generated and sent millions of anonymous and often provocative, romantic, or sexual messages to users of the Sendit app, many of whom are children or teenagers.
The complaint alleges that Defendants, in violation of the FTC Act’s prohibition on unfair and deceptive business practices, falsely led users to believe the messages were from their social media contacts rather than the Sendit app itself, and that purchasing a “Diamond Membership” would reveal the senders’ identities.
Additionally, the complaint alleges that Defendants violate COPPA by collecting personal information from app users who are children under the age of 13 while failing to provide notice to their parents or obtain verifiable parental consent.
The United States alleges that Defendants also violate ROSCA by failing to clearly and conspicuously disclose the material terms of their Diamond Memberships, which automatically renew and cost as much as $9.99 per week.
The complaint seeks civil penalties, restitution for consumers, and injunctive relief. The United States is represented in this action by Trial Attorney Marcus P. Smith and Assistant Director Zachary A. Dietert of the Civil Division’s Consumer Protection Branch.
Iconic Hearts Holdings Inc., a company founded by Hunter Rice, is accused of generating tens of millions of dollars in revenue from Diamond Membership purchases.
The case highlights the need for greater oversight and regulation of social media companies, particularly those that target vulnerable populations such as children.
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Key Facts
- State: California
- Category: Cybercrime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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