The Federal Trade Commission Nails Online Marketers For Deceiving Shoppers ($2.5 Million Fine)

Online Marketers Banned from Deceiving Shoppers

Federal Trade Commission Building

A group of online marketers will pay more than $2.5 million to settle Federal Trade Commission charges that they deceived consumers with “free” and “risk-free” trials for cooking and golfing products.

According to an FTC complaint filed in March 2017, the defendants offered “free” products, without clearly disclosing that by accepting the “free” product consumers were agreeing to be charged each month for a subscription if they did not cancel. They also allegedly misrepresented their return, refund and cancellation policies.

Under settlement orders announced today, the defendants are prohibited from misrepresenting the cost of any good or service, that consumers will not be charged, that consumers can get something for a processing or shipping fee with no further obligation, and that a product or service is free.

The orders also require the defendants to clearly disclose important details about any online negative option where consumers’ enter billing information, to get consumers’ informed consent before charging them, and to offer a simple way for consumers to cancel recurring charges. The orders also bar them from billing consumers who were first charged before March 1, 2016, and from selling or otherwise benefitting from consumers’ personal information and failing to dispose of it properly.

The order against Brian Bernheim and Joshua Bernheim imposes a $1,869,690 judgment that they must pay in four installments within one year. To secure the payment, they granted the FTC a security interest in real estate and other assets valued at more than two and a half million dollars.

The order against Robert Koch imposes a $632,304 judgment that he must pay in three installments within one year. To secure the payments, Koch granted the FTC a security interest in real estate worth more than one million dollars.

The Commission vote approving the proposed stipulated orders was 2-0. The U.S. District Court for the Southern District of California entered the orders on August 31, 2017.

NOTE: Stipulated final orders have the force of law when approved and signed by the District Court judge.

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357).

[Source: FTC -/- Media Relations]
[Photo Credits: inserted by Openeyesopinion.com credits embedded]

###


 

Visiting Las Vegas?… Check out this website first




Click here for reuse options!
Copyright 2017 openeyesopinion.com
Share This Post
Share on Facebook0Share on Google+0Tweet about this on TwitterShare on Reddit1Pin on Pinterest0Share on StumbleUpon0Share on LinkedIn0Digg thisShare on Yummly0Share on Tumblr0Buffer this pagePrint this pageEmail this to someone





Related News

  • Two US Marines Helped To Save Lives During The Las Vegas Attack
  • Was U.S. Security Compromised By The Obama-Clinton Deals With Russia?
  • Tax Reform – Democrats In Congress Fiercely Oppose Losing Some Write-Offs That Benefit The Wealthy (?)
  • California National Guardsmen Help With Fire Victim Evacuees
  • The U.S. Immigration Population Hits The Highest Percentage In 106 Years (45.6 Million)
  • Sanctuary Cities – There Are Now Almost 1 Million Criminal Illegal Aliens At Large In The United States
  • Iceland Announced They Created The First Negative Emissions Plant In The World
  • Smartphones Have Become An Essential Aspect Of Our Sense Of Self
  • Rick Perry, US Secretary Of Energy, Takes Action To Preserve The U.S. Electrical Grid
  • Censured Missouri State Senator, Maria Chappelle-Nadal, Compares Donald Trump To Hitler
  • U.S. Withdraws From UNESCO
  • Sanctuary Cities – U.S. Justice Department Provides Last Chance For Cities To Show 1373 Compliance
  • Hypocritical Rappers Cannot Gain The Moral High Ground By Bashing
  • U.S. Border Patrol Intercepts Human Smuggling Attempt In Vermont
  • The NFL Is Starting To Realize Its War On The White House Was Not Its Best Idea
  • Is Artificial Intelligence Going To Be The End Of The Human Race?