On July 12, 2019, the Federal Trade Commission ("FTC")
filed a complaint against AH Media Group, LLC, and its
owners, Henry Block and Alan Schill (collectively,
"Defendants"), for allegedly violating certain free trial
laws as codified in Section 5(a) of the FTC Act, Section 4 of the
Restore Online Shoppers' Confidence Act ("ROSCA"),
Section 907(a) of the Electronic Funds Transfer Act
("EFTA"), and Section 1005.10(b) of Regulation E,
respectively. The Defendants have agreed to a preliminary
injunction, barring them from continuing to run negative option
plans tied to "free" trial offers.
How did the Defendants' "free" trial offers
allegedly violate free trial law?
Negative Option Programs