May 28, 2015
Attorneys General from 22 states reached agreement with Classmates, Inc., Florists’ Transworld Delivery, Inc. and FTD.com (the “Settling Parties”) to settle allegations that the Settling Parties sold consumer information to negative option marketers. Of the $11 million settlement sum, $8 million will be paid by the Settling Parties directly to the various state attorneys general, while a $3 million fund will be established for consumer restitution. The settlement agreement also contains terms which will prevent the Settling Parties from knowingly transmitting consumer information to negative option marketers in the future.
What are “data passing” and “negative option marketing”?