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September 19, 2012 at 01:57 AM
The Federal Trade Commission (FTC) recently challenged the claims of two companies that offer to help consumers find long-term care (LTC) facilities for themselves and their loved ones.
Both companies have agreed to settle the investigation by being more modest when describing the scope of the facility review services that they offer consumers. The FTC is not imposing any fines or other penalties, and the companies are not admitting or denying the allegations.
The 5 FTC commissioners have voted to make the proposed consent orders public. The FTC is putting the proposed consent orders through a 30-day public comment period and then can decide whether to make the consent orders final.
Chuck Bongiovanni, the chief executive officer (CEO) of one of the companies involved, CarePatrol, said he was glad to see FTC officials taking an interest in the industry.
FTC officials seem to be interested mainly in making sure the companies are careful about what they promise, and, given the circumstances, “they were extremely reasonable,” Bongiovanni said.
Some competitors see the LTC advice services business as a get-rich-quick business, Bongiovanni added.
“We definitely need more regulation,” he said.
Representatives for the other company that attracted FTC attention, ABCSP, could not immediately be reached for comment.
Both CarePatrol, an Arizona company, and ABCSP, a California company, offer advice about assisted living facilities and other LTC facilities through franchisees. The franchisees make their services free of charge to consumers and get compensation from the facilities.
