Compliance » "Free Trials" And Unwanted Renewals Draw FTC Action In CA

"Free Trials" And Unwanted Renewals Draw FTC Action In CA

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July 16, 2015

In the Central District of California, a slew of skincare product companies and a number of individuals had their assets frozen and their businesses put into receivership by the Federal Trade Commission. The FTC alleges the defendants used online banners, pop-ups and websites to offer “risk-free” trials of their products, as long as you supplied credit card information for shipping and handling, but instead what you got was a charge for the product and enrollment in a subscription plan under which you were shipped more products, with recurring charges. Defendants were also alleged to have made it hard to cancel or get a refund, and to have falsely claimed they had an A rating from the Better Business Bureau. Arent Fox attorneys note this isn’t the first time the FTC has gotten interested in free trials and automatic renewals, and some state AGs have become interested too.

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