A group of online scammers will pay more than $2.5 million to Repay Federal Trade Commission charges that they deceived consumers with “free” and “risk-free” trials for golfing and cooking products.
According to an FTC complaint filed in March 2017, The defendants offered “free” products, without clearly demonstrating that by accepting that the “free” merchandise customers were agreeing to be charged every month for a subscription if they didn’t cancel.
Under Settlement orders announced today, the defendants are prohibited from misrepresenting the cost of any service or good, that consumers will not be charged, that consumers can get something for a shipping or processing fee with no additional obligation and that a service or product is free.
Disclose important details about any online bad choice where consumers’ enter billing information, to get customers’ informed consent before charging them, and to offer a simple way for consumers to offset recurring charges. The orders also bar them from billing consumers who were first charged before March 1, 2016, and from selling or otherwise benefitting from customers’ private information and failing to dispose of it properly.
The order against Brian Bernheim and Joshua Bernheim imposes a $1,869,690 judgment That they need to pay in four installments within one year. To secure the payment, they granted the FTC a security interest in real estate and other assets valued at over two and a half million bucks.
The order against Robert Koch imposes a $632,304 judgment He has to pay in three installments within a year. To secure the payments, Koch granted the FTC a security interest in real estate worth several million dollars.
Orders that are suggested was 2-0. The U.S. District Court for the Southern District of California entered the orders on August 31, 2017.