Court Stops Alleged Deceptive Health Care Telemarketing Operation  

On January 23, 2026, the Federal Trade Commission announced that, at its request, a U.S. district court in Florida temporarily stopped the operations of numerous companies and individuals that the FTC alleges caused tens of millions of dollars in harm through the purported deceptive marketing of health care plans.

As alleged in the FTC’s complaint seeking injunction relief, Top Healthcare Options Insurance Agency, Inc. and 11 related defendants operate a deceptive telemarketing scheme that takes advantage of consumers looking for comprehensive health insurance.  They often target consumers shopping for comprehensive health insurance plans on the Internet, according to the FTC.  In reality, the FTC alleges, the plans the defendants sell are not comprehensive health insurance or equivalent to such plans, do not provide the promised coverage, and leave the buyers unprotected from, at times, crushing medical costs.

“Health insurance is one of the most important and costly purchases consumers buy for themselves and their families,” said FTC lawyer Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “Whether shopping for groceries or healthcare, affordability is front-and-center right now in consumers’ decision-making process. This makes ensuring they have all the information necessary to make informed choices even more important.”

The FTC alleges consumers are misled into entering personal information on websites that appear as if they offer comprehensive health insurance by promoting plans such as “Affordable Care Act Plans,” “Obamacare Health Insurance Carriers,” and “2024 Obama Care Plans.”  The websites, however, are purportedly actually built for lead generators who collect consumers’ information and sell it to the defendants or their vendors for telemarketing purposes, according to the complaint.

The complaint alleges that, when calling consumers, the defendants launch into a pitch designed to move prospective buyers away from comprehensive health insurance coverage and toward the plans they offer, which actually provide far less health care coverage than comprehensive plans, leaving the buyers exposed to thousands of dollars of out-of-pocket medical expenses.

The complaint charges the defendants with falsely representing that the limited benefits plans and medical discount memberships they sell:

• are comprehensive health insurance, or the equivalent of such insurance;
• are PPO plans;
• provide substantial coverage for consumers’ specific needs, such as specific providers, types of medical services, or prescription medications; and
• limit consumers’ responsibility for the cost of certain medical services to a fixed, low amount, for example, by using copays or deductibles.

The complaint alleges the defendants violated the FTC’s Telemarketing Sales Rule and the FTC Act.  It seeks refunds for affected consumers and other relief.  The court has entered a temporary restraining order against the defendants for their alleged law violations.

Richard B. Newman is an FTC CID attorney at Hinch Newman LLP. 

Informational purposes only. Not legal advice. This article is not intended to and should not be construed as legal advice. May be considered attorney advertising.