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ARTICLE · 20 APRIL 2018

FTC Settles Negative Option Lawsuit

Klein Moynihan Turco LLP
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The Federal Trade Commission entered into a settlement agreement this week with dozens of related entities and their individual owners in connection with a negative option marketing operation.

United StatesConsumer Protection
David O. Klein
David O. Klein
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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 products, including tooth-whitening products, through myriad marketing websites on which trial offers associated with illegal negative option plans were available.  The FTC further alleged that the websites utilized both deceptive claims and misleading disclosures which caused consumers to provide billing information to pay for trial products only to incur recurring monthly fees without their knowledge or consent.

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