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Old 09-26-2011, 03:44 PM  
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FTC cracking down on "Free Trials"

Looks like there is more on the way

http://www.ftc.gov/opa/2011/09/jessewillms.shtm

Quote:
he scheme allegedly lured consumers into ?free? or ?risk-free? offers for weight-loss pills and tooth whiteners, and then billed them for things they did not want or agree to purchase, providing false or misleading information to merchant banks in order to acquire credit and debit card processing services.

The court order granting a preliminary injunction against Jesse Willms and 10 companies he controls stems from the FTC?s ongoing crackdown on online fraud. Pending trial, it bans the defendants from selling products or services that feature a ?negative option,? in which the seller interprets consumers? silence or inaction as permission to charge them, or ?continuity plan? in which consumers are sent regular shipments of merchandise until they cancel. The preliminary injunction also prohibits the defendants from offering any products as a ?free trial? or ?bonus?; misrepresenting costs of a product or any cancellation policy; failing to disclose the amount and timing of fees and the terms and conditions of any refunds; making misrepresentations about the benefits or safety of products; misrepresenting any product endorsement or testimonial; and charging consumers without their express consent.
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