All the people pushing free trial diet offers like acai berries and hoodia, better read up on this and then check your offers for compliance.
The FTC has been hitting diet marketers with multi million dollar judgements.
We all know why some of those free trial diet offers pay so high. The companies bank on the fact the consumer is going to be duped into paying the continuity payments, at least for awhile. Few are upfront with the consumer disclosure about the real terms, many are hiding or omitting the real terms of the agreement. No matter how you look at it, most of these offers are pretty shady and the FTC is cracking down on them.
The FTC imposed a $7,803,425 judgment against one company. They ended up settling for less, but it was still several hundred thousand dollars. There are several cases against marketers cited plus they have published a report about the requirements for continuity offers and negative option marketing.
Quote:
From FTC.gov FTC Targets Weight-Loss Marketers’ Allegedly Bogus ‘Free’ Sample Offers
All of the defendants were charged with violations of the FTC Act:
* Making false or unsubstantiated weight-loss and related claims;
* Failing to disclose adequately that consumers who order a “free” sample are enrolled in a continuity program, that their accounts will be debited or charged to pay for the program, that they must cancel to avoid extra shipments and debits and charges, and how and when they must cancel to avoid the debits or charges; and
* Debiting or charging accounts of consumers who cancelled or tried to cancel, or those who were not adequately informed of the negative option features or terms and conditions, and therefore did not provide express informed consent for the debits or charges.
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FTC Million $ Fines for Bogus Free Trial Diet Offers
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