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This business has 2 alerts.
Government Actions
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.
November 21, 2019 The following describes a settlement that has been formally brought by a government agency. Federal Trade Commission alleges and charges as follows:
The Federal Trade Commission is mailing 79,771 refund checks totaling over $1.8 million to consumers who signed up for "risk-free" trial offers for skin care products, but were enrolled in negative option programs with recurring monthly charges.
The agency's complaint, filed in June 2015, charged seven individuals and 15 companies with selling Auravie, Dellure, LéOR Skincare, and Miracle Face Kit branded skincare products through deceptive "risk-free trials." According to the FTC, the defendants convinced consumers to provide their credit card information, purportedly to pay nominal shipping fees, but instead used it to impose unauthorized monthly charges for unordered products.
The agency also charged defendants with misrepresenting themselves as accredited by the Better Business Bureau, in violation of the FTC Act.
The FTC approved separate settlement orders with two sets of related defendants. First, in October 2016, 10 individual and corporate defendants settled the FTC's charges. These orders barred the defendants from the conduct alleged in the complaint and required them to pay money to provide refunds to affected consumers. The second settlement, approved in June 2018, resolved the FTC's charges against the remaining defendants. In addition, the court entered default judgments against 19 other corporate defendants and one individual defendant.
Rust Consulting, Inc., the refund administrator for this matter, will begin mailing checks today. The average check amount is $22.95, and it must be cashed within 60 days, as indicated on the check. The FTC never requires consumers to pay money or provide information to cash refund checks. Consumers who have questions about the mailing should call 1-866-801-0473. If a consumer believes they lost money to this scheme but has not received a check, they can contact the refund administrator using the hotline number below.
The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs, and subscribe to press releases for the latest FTC news and resources.
To access the full Federal Trade Commission press release, please visit: https://www.ftc.gov/news-events/press-releases/2019/11/ftc-sending-refund-checks-totaling-over-18-million-consumers?utm_source=govdelivery
Government Action
The following describes a pending government action that has been formally brought by a government agency but has not yet been resolved. We are providing a summary of the government's allegations, which have not yet been proven.
The Federal Trade Commission has stopped a group of marketers in California from using allegedly bogus "risk free trial" offers to sell skincare products online. At the Commission's request, a federal district court has issued a temporary restraining order against the defendants halting their alleged deceptive marketing practices, freezing their assets, and appointing a receiver over their business.
The agency's complaint charges seven individuals and 15 companies that sell Auravie, Dellure, LéOR Skincare, and Miracle Face Kit brand products with allegedly using deceptive offers to trick consumers into providing their credit or debit card information, and then charging them for the full price of the product and enrolling them in a buying program with recurring fees.
According to the FTC's complaint, since at least 2010, the defendants have marketed and sold skincare products on a variety of websites, such as aurviefreetrial.com, auraviewtrialkit.com, and mymiraclekit.com. The defendants use pop-up advertisements, banner ads, and advertising space on third-party websites, including Amazon.com, Huffingtonpost.com, and Lowes.com, to tout "risk free trial" offers to direct consumers to their websites, where they are instructed to provide their credit or debit card information to pay shipping fees of $4.95 or less to receive the trial offer.
The FTC alleges that consumers who provide their credit card information soon discover that they have been charged much more - typically $97.88 - under terms hidden in fine print on the defendants' websites. Consumers also are enrolled without their consent in subscription plans under which they are shipped more products and charged recurring fees. The defendants make it difficult to cancel the memberships, stop or avoid the charges, or obtain a refund.
The FTC alleges the defendants also misrepresented themselves as accredited by the Better Business Bureau with an "A-" rating. In fact, the company is not accredited and has a BBB rating of "F."
The FTC charged the defendants with violating the FTC Act, the Restore Online Shoppers' Confidence Act (ROSCA), and the Electronic Funds Transfer Act (EFTA). In filing the complaint, the FTC is seeking a court order permanently barring the defendants from the allegedly illegal conduct and refunds for defrauded consumers.
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