WASHINGTON (Legal Newsline) — The Federal Trade Commission (FTC) announced this week a group of 29 defendants has been banned from deceptive marketing and billing tactics after the defendants allegedly used these tactics to promote skincare products.
The defendants sold Auravie, Dellure, LéOR Skincare, and Miracle Face Kit branded skincare products. According to the FTC, they use false advertisements that alleged consumers could receive “risk-free” trials. The defendants allegedly obtained credit card information from consumers for what they claimed would be nominal shipping costs.
They would then purportedly charge consumers with unauthorized monthly recurring charges of up to $97.88 per month.
“These defendants tricked people into paying for skin care products and abused the credit card system to extend their scheme,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection. “The commission will continue to attack scams that rely on supposed ‘free trial’ offers and unauthorized credit card charges.”
The FTC charged the defendants with violations of the FTC Act, the Restore Online Shoppers’ Confidence Act and the Electronic Funds Transfer Act.
All defendants will be banned from selling products through a “negative option,” in which consumer silence is taken as consent to receive and pay for goods and services. The monetary fines levied against the defendants amount to $72.7 million. This amount will be partially suspended once the defendants surrender assets totaling $2.7 million.