On October 22, 2021, the Federal Trade Commission (“FTC”) published an enforcement policy statement on negative option marketing. Soon thereafter, on October 28, 2021, the FTC issued a press release explaining that its guidelines are meant to serve as a warning to businesses against employing deceptive sign-up tactics and/or illegal dark patterns that trap consumers […]
FTC Guidelines on Negative Option Marketing Released Read More »
On September 1, 2020, Age of Learning Inc., d/b/a ABCmouse (“ABCmouse”), agreed to pay $10 million to settle an enforcement action brought by the Federal Trade Commission (“FTC”) for engaging in alleged illegal marketing and billing practices. According to the FTC, ABCmouse, which operates a membership-based online learning tool for children, enrolled unsuspecting consumers in
FTC Obtains $10M Settlement for Negative Option Marketing Read More »
On May 13, 2020, the Federal Trade Commission filed a complaint in the Eastern District of Pennsylvania against American Future Systems, Inc. (“AFS”), a Pennsylvania-based telemarketing company, and its alleged co-conspirator, International Credit Recovery, Inc. (“ICR”) (AFS and ICR, collectively, “Defendants”), for conspiring to bilk businesses into paying for publications that they never ordered. Pursuant
FTC Sues Negative Option Marketers Read More »
September 30, 2019 On September 25, 2019, the Federal Trade Commission (“FTC” or “Commission”) published an Advance Notice of Proposed Rulemaking calling for public comment on the need to amend the current “Rule Concerning the Use of Prenotification Negative Option Plans” (the “Negative Option Rule” or “Rule”). Negative option marketing, where a consumer’s silence constitutes
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June 6, 2019 Last week, the Federal Trade Commission (“FTC”) announced that it had settled a free product trial lawsuit brought against Triangle Media Corp., Jasper Rain Marketing LLC, Hardwire Interactive Inc., Global Northern Trading Ltd., Brian Phillips, and Devin Keer (collectively, “Defendants”). The FTC’s free trial law complaint and amended complaint both alleged that
FTC Settles Another Free Trial Law Investigation Read More »
March 6, 2019 Last month, Mastercard Incorporated (“Mastercard”) announced an important change to its policies that will require merchants to provide specific automatic enrollment disclosures to consumers at the conclusion of all free-trial offers. The Mastercard free trial terms are intended to protect consumers from merchants that offer misleading “free to pay” conversions, continuity plans,
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March 4, 2019 Beauty product marketer, F9 Advertising, LLC, several related entities, and their individual owner, have been sued by the Federal Trade Commission (“FTC”) for allegedly fraudulent continuity billing practices. The FTC alleges that the non-compliant continuity billing practices and related marketing violate the Restore Online Shoppers’ Confidence Act (“ROSCA”). How do the entities’
Skincare Product Marketer’s Continuity Billing Draws FTC Scrutiny Read More »
April 18, 2018 The Federal Trade Commission (“FTC”) entered into a settlement agreement this week with dozens of related entities and their individual owners in connection with a negative option marketing operation. The FTC had commenced a lawsuit against the parties alleging that the individual owners operated nearly sixty (60) companies that sold personal care
FTC Settles Negative Option Lawsuit Read More »
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