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ARTICLE · 29 MAY 2020

B2B Marketing Triggers FTC Complaint

Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
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Frankfurt Kurnit Klein & Selz PC

Frankfurt Kurnit Klein & Selz PC

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The complaint alleges that American Future Systems, Inc. charged businesses, schools, fire and police departments, and other non-profits, for books and newsletter subscriptions they never ordered.

United StatesMedia, Telecoms, IT, Entertainment

The FTC's recent announcement about its complaint against a B2B marketer shows the importance of adhering to  the basic principles of disclosure and consent when engaging in negative option marketing, even in the business-to-business context.

The complaint alleges that American Future Systems, Inc. (AFS) charged businesses, schools, fire and police departments, and other non-profits, for books and newsletter subscriptions they never ordered.  AFS marketed the subscriptions by phone, allegedly creating the impression that they were sending free samples with no obligation.  In reality, according to the complaint, AFS enrolled the organizations into its subscription service on a negative option basis, that is, the organizations would incur charges unless they took steps to cancel the subscription.  In addition, the complaint alleges, the invoices sent to the organizations included no information about how to cancel.  

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This post first appeared in Frankfurt Kurnit's Focus on the Data blog (www.focusonthedata.com). It provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

Originally published by the New York Legal Ethics Reporter

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

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