XM Brands settles with Florida

Keith Loria Jan. 7, 2011, 2:51pm


TALLAHASSEE, Fla. (Legal Newsline) - Florida Attorney General Pam Bondi announced on Thursday that she has reached a settlement with an Internet company that allegedly engaged in deceptive marketing practices.

XM Brands, doing business as XM LABS LLC, offers non-prescription dietary aids, nutritional supplements and other products for sale on the Internet.

In December 2009, consumers began complaining about being billed by the company for products they never bought. A suit against the company alleged that it offered trial products that allegedly activated automatic subscription renewals and automatic shipments.

The agreement requires the company to reimburse as much as $3 million to consumers affected by its actions. It is also required to pay another $51,000 to Bondi's office to cover costs associated with litigation.

Furthermore, XM Brands agreed to be clearer with the terms and conditions of any trial offers from now on to make sure that consumers understand about the automatic renewals and shipments.

Bondi received full cooperation from XM Brands and its directors in reaching the settlement.

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