Flywheel Sports website: ‘We’ll not be able to compete with the best’
Posted On July 13, 2021
Flywheel Sport, a division of Flywheel Technology Group, said in a statement on Tuesday that it has been ordered to cease operations in the United States, as a result of a cease and desist order from the Federal Trade Commission.
The company has been operating since April 2018 in the District of Columbia and Maryland, according to its website.
Flywheel, a subsidiary of Flywheels, announced last week that it will cease operations after a series of regulatory actions taken by the FTC.
The company said it has hired an independent firm to conduct a “forensic investigation of the FTC’s actions.”
The FTC said in its complaint that Flywheel’s actions harmed consumers and competition and violated the FTC Act, the Electronic Communications Privacy Act, and the Fair Trade Act.
The FTC also cited Flywheel for failing to disclose the identities of customers of its network of retailers, the retailer’s network of suppliers, and customers who had purchased products through Flywheel.
The FTC said Flywheel had failed to notify customers that it was not responsible for the accuracy of product ratings.
The FCC said it was taking enforcement action against Flywheel because it did not “take adequate steps to protect consumer information from unauthorized access.”