FTC Defense Law: Brand Busted For “Free Trial” Payment Scam

July 16, 2018

Attention affiliate marketers: The Federal Trade Commission busted another company for advertising “free trials” but charging full price and unwittingly enrolling victims in continuity plans. Ultimately, a judge froze the entity’s assets, appointed a temporary receiver, and ordered the business to halt operations.

FTC Busts Online Retail Brand For Deceptive Marketing and Recurring Payment Program

This time around, a company that marketed beauty and vice products, via “RISK FREE” trials, came under the FTC’s hammer.

What was the alleged scam?

People who thought they would pay $4.95 or less for a product sample and shipping were charged nearly $100. Moreover, they allegedly enrolled buyers in a stubborn subscription program. Some victims were only able to stop the charges by contacting their credit card companies directly. Obtaining a refund was nearly impossible.

The scam allegedly netted tens of millions, and authorities charged the parties with violating the FTC Act, Electronic Fund Transfer Act, and the Restore Online Shoppers’ Confidence Act.

According to the complaint, the perpetrators used website design trickery to accomplish their goals.

As is the case with many FTC investigations, the commission enlisted the help of other agencies, including the United States Postal Inspection Service, the San Diego County District Attorney’s Office, the Better Business Bureau of Denver & Boulder, the Nevada Attorney General’s Office, the Better Business Bureau of Detroit & Eastern Michigan, the Better Business Bureau of Eastern & Southwest Missouri & Southern Illinois, and the Better Business Bureau of Southern Nevada.

Contact An FTC Defense Lawyer

Is the Federal Trade Commission breathing down your neck? Have you received notification of an investigation against your operation? If yes, give us a call.

Our team of experienced FTC defense lawyers has helped countless individuals and businesses navigate probes. We can determine your best course of action. If the FTC does have a solid case, we know ways to minimize your losses, legally.

Get in touch today to begin the conversation. The consultation is on us. Let’s start talking about your FTC defense options.



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