Business ProfileforTriangle Media Corporation

In September 2019, BBB contacted the business regarding its advertising of free trial periods of its products. Consumers that sign up for the free trial period are enrolled in a monthly subscription for additional products. BBB requested the business substantiate that the claims meet the standards outlined in BBB's Code of Advertising (Section 18, Negative Option Plans, Continuity Plans and Automatic Shipments). The Code maintains that "Any advertisement for a product or service that includes an offer to sell or provide consumers with additional goods or services under a negative option feature must include a clear and conspicuous disclosure of all material terms of the negative option feature." Material terms that should be clear and conspicuous include the existence of the negative option feature, the cost of the additional goods or services, how consumers can cancel and avoid future shipments and charges, and how consumers can return items that they do not want. The Code continues that "advertisers must avoid making disclosures that are vague, unnecessarily long or which contain contradictory language."

Additionally, BBB asked the company to substantiate claims made on its website about the efficacy or results of using the company's products. BBB requested the business substantiate the claims per standards outlined in BBB's Code of Advertising (Section 34, Claimed Results). Claims as to efficacy or results which will be obtained by or realized from a particular product should be based on recent and competent scientific or other objective data. Advertisers should be prepared to substantiate such claims.

As of this date, the business has not responded to BBB's request for substantiation about its advertising.

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.

On June 22, 2020, the Federal Trade Commission stated that they are mailing refunds totaling more than $8.7 million to 187,425 consumers who signed up online for "risk-free" trial offers, but were then charged full price and enrolled in expensive continuity plans without their knowledge. The refunds are the result of several orders settling the FTC's allegations against San Diego-based Triangle Media Corporation and related defendants.

On June 22, 2018, The Federal Trade Commission filed a Complaint for Permanent Injunction and Other Equitable Relief against Triangle Media Corp and its owner, Mr. Brian Phillips (case number 18CV1388BENNLS United States District Court, Southern District of California 333 West Broadway #420, San Diego, CA 92101.) Charges filed allege that the business was in violation of the FTC Act, the Restore Online Shoppers' Confidence Act, and the Electronic Fund Transfer Act.

The FTC stated that the defendants marketed and sold a variety of products online, including skin creams, electronic cigarettes, and dietary supplements. Using third-party websites, blog posts, and surveys, the defendants advertised trial products for just the cost of shipping and handling, but after a limited trial period, then charged up to $98.71 for the products and enrolled customers in costly negative option plans without their consent.

The FTC also alleged the defendants used deceptive order confirmation pages to trick consumers into ordering additional products for full price, enrolling them in additional negative option plans.

On April 3, 2019, a Stipulated Order for Permanent Injunction and Monetary Judgment was entered against Triangle Media Corporation and other defendants. It prohibits the defendants from, or assisting others in, misrepresenting any material facts about a negative option transaction, including the cost of the good or service, that a good or service is free, or subject to a nominal fee, and the terms of any refund, cancellation, or exchange policy.

The order also requires the defendants to comply with ROSCA by providing clear and conspicuous disclosures to consumers, getting their express informed consent before charging them for a product or service with a negative option plan, and providing a simple means of cancelling any shipping order to avoid future charges. It also requires the defendants to obtain consumers' express informed consent before making any electronic funds transfer and to provide the consumer with a copy of the written authorization.

The order imposed a $48.1 million judgment against the Triangle defendants, which was partially suspended after they paid the FTC $399,795 and relinquished any right they may have had to assets held by the court-appointed receiver.

More details and up to date information can be found at: https://www.ftc.gov or calling (202) 326-2222.