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FTC SUES HERBAL PATCH MAKER FOR DECEPTIVE
CLAIMS, FRAUD
May 11, 2008 - NextClick Media operated several Web sites promoting free trials for its herbal
products, including stop-smoking patches called "Nicocure," "Stop Smoking 180," and "Zero
Nicotine."
The Federal Trade Commission sued, charging the trials weren't free, the patches didn't work
as claimed, and the operation was illegally debiting consumers' bank accounts without their
authorization.
The defendants have now agreed to abide by a federal court order that bars them from making
deceptive claims, restricts their ability to dissipate assets, requires them to preserve records
and other evidence, and account for the money they made from their venture.
According to the FTC, NextClick Media advertised that consumers would only pay for shipping
and handling with ads in large type that say "FREE 10-Day Supply plus shipping and
handling," and "TRY IT FREE." Consumers who want to try the "free trial" provide a credit or
debit card to pay for the shipping charge.
But, the FTC alleges, the trials weren't free. Consumers weren't sent a 10-day trial size
package. They were sent a 30-day supply and had to pay for all 30 days of product if they
chose to keep it. Consumers who chose to return the unused product paid postage and were
assessed a $7.95 restocking fee, neither of which the FTC says was disclosed adequately by
the sites.
The agency also alleged that the operators failed to make clear that consumers who signed up
for the free trial were agreeing to be enrolled in a continuity program and would be
automatically billed monthly charges of up to $99.95 until they cancelled. But, the operators
deliberately misled consumers into believing they would not be automatically enrolled.
Click on the red link above to continue the story.
Source: Consumeraffairs
CLAIMS, FRAUD
May 11, 2008 - NextClick Media operated several Web sites promoting free trials for its herbal
products, including stop-smoking patches called "Nicocure," "Stop Smoking 180," and "Zero
Nicotine."
The Federal Trade Commission sued, charging the trials weren't free, the patches didn't work
as claimed, and the operation was illegally debiting consumers' bank accounts without their
authorization.
The defendants have now agreed to abide by a federal court order that bars them from making
deceptive claims, restricts their ability to dissipate assets, requires them to preserve records
and other evidence, and account for the money they made from their venture.
According to the FTC, NextClick Media advertised that consumers would only pay for shipping
and handling with ads in large type that say "FREE 10-Day Supply plus shipping and
handling," and "TRY IT FREE." Consumers who want to try the "free trial" provide a credit or
debit card to pay for the shipping charge.
But, the FTC alleges, the trials weren't free. Consumers weren't sent a 10-day trial size
package. They were sent a 30-day supply and had to pay for all 30 days of product if they
chose to keep it. Consumers who chose to return the unused product paid postage and were
assessed a $7.95 restocking fee, neither of which the FTC says was disclosed adequately by
the sites.
The agency also alleged that the operators failed to make clear that consumers who signed up
for the free trial were agreeing to be enrolled in a continuity program and would be
automatically billed monthly charges of up to $99.95 until they cancelled. But, the operators
deliberately misled consumers into believing they would not be automatically enrolled.
Click on the red link above to continue the story.
Source: Consumeraffairs
