Sunday, October 25, 2020

Nutraclick Fined by FTC

Must read

FTC Enforcement Update: SCOTUS to Decide Agency’s Monetary Restitution Authority

The Supreme Court has started its new term.  FTC defense practitioners are watching closely as the Court is considering issues that may...

What Are LinkedIn Stories?

Instagram Stories and Facebook Stories have been around for a while now but have you heard of the latest social channel to...

Affiliate Scammer Peter Szatmari ordered to pay over $13.8M for role in binary options fraud

An affiliate marketer named Peter Szatmari must pay more than $13.8 million for fraudulently soliciting investors to open and fund binary options...

FTC: $145 Million in Coronavirus Fraud since January

More than 200,000 Americans have lost $145 million linked to the COVID-19 pandemic since the start of the year, the Federal Trade...
Pesach Lattin
Pesach Lattinhttp://pacevegas.com
Pesach "Pace" Lattin is one of the top experts in interactive advertising, affiliate marketing. Pace Lattin is known for his dedication to ethics in marketing, and focus on compliance and fraud in the industry, and has written numerous articles for publications from MediaPost, ClickZ, ADOTAS and his own blogs.

Boston-based supplement marketer NutraClick LLC and its two officers have agreed to pay $1.04 million and be banned from negative option marketing in order to settle Federal Trade Commission allegations that the company’s deceptive sales and billing practices violated federal law and a 2016 federal court order from a prior FTC case.

According to the FTC’s complaint and proposed contempt order, NutraClick and the other defendants violated the Restore Online Shoppers’ Confidence Act, the FTC’s Telemarketing Sales Rule, and the previous court order, by failing to clearly and conspicuously disclose all material terms of their negative option sales offers, despite agreeing to do so in the 2016 order.

The $1.04 million that the defendants will pay under the settlement represents 100 percent of the consumer harm they caused, as well as the total revenue made through their allegedly deceptive conduct. The FTC may use it to provide refunds to consumers billed by NutraClick on the last day of the trial period.“Hiding the true deadline for canceling a free trial offer isn’t just bad business – it’s illegal,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection. “And that’s why NutraClick will be permanently banned from using negative options in the future.”

In 2016, NutraClick agreed to settle the FTC’s complaint alleging that it did not clearly disclose that people who ordered samples of supplements and beauty products would be enrolled in a membership program and billed from $29.99 to $79.99 monthly unless they canceled within an 18-day trial period. At least 70,000 people filed complaints about the operation. The company netted tens of millions of dollars from the unauthorized recurring charges, the FTC contended.

The Commission vote authorizing the staff to file the current complaint and proposed orders was 2-1-2, with Commissioner Rohit Chopra voting no, and Commissioners Rebecca Kelly Slaughter and Christine S. Wilson not participating. The complaint and proposed orders were filed in the U.S. District Court for Central District of California.

- Advertisement -

More articles

What's your opinion?

- Advertisement -

Latest article

FTC Enforcement Update: SCOTUS to Decide Agency’s Monetary Restitution Authority

The Supreme Court has started its new term.  FTC defense practitioners are watching closely as the Court is considering issues that may...

What Are LinkedIn Stories?

Instagram Stories and Facebook Stories have been around for a while now but have you heard of the latest social channel to...

Affiliate Scammer Peter Szatmari ordered to pay over $13.8M for role in binary options fraud

An affiliate marketer named Peter Szatmari must pay more than $13.8 million for fraudulently soliciting investors to open and fund binary options...

FTC: $145 Million in Coronavirus Fraud since January

More than 200,000 Americans have lost $145 million linked to the COVID-19 pandemic since the start of the year, the Federal Trade...

Why EU Ad Revenues Are Dropping Fast Because of Google

It’s almost here, CMP (consent management platform) D-day! The question is, are you ready? On October 15, Google and other demand sources are...