FTC Wins Around $73M From Defendants Behind ‘Risk-Free’ Skin-Care Trials
This article was originally published in The Rose Sheet
A California district court has imposed injunctions and monetary penalties on roughly 30 companies and individuals that cooperated to sell AuraVie, Dellure and LéOR Skincare offerings, among others, via deceptive “risk-free” trial plans, according to FTC. The agency says it will continue to go after negative-option billing schemes that charge consumers for recurring product shipments without their express consent.
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The Federal Trade Commission is making good on its promise to crack down on illegal negative option billing practices, targeting a scheme involving nearly 80 companies and 90 websites that lured unwitting consumers into paying up to $200 every month for what initially was presented as a low-cost trial "reward."
A proposed bill advancing through California's legislature would require businesses to present consumers with a standalone opt-in form for auto-enrollment programs that is separate from the consent mechanism for an introductory gift or offer, and then with written notice three to seven days before the first automatic payment goes through. California's rules for continuity marketing are already the toughest in the nation.