LOS ANGELES (Legal Newsline) – The Federal Trade Commission has settled with a company called NutraClick over allegations it violated a four-year-old court order.
NutraClick, also known as Force Factor, will pay $1.04 million to settle the FTC’s recently filed lawsuit, it was announced Sept. 22. The company is based in Boston and sells supplements and beauty products.
It is accused of hiding the true deadline for canceling a free trial offer. It will be banned from using negative option marketing.
A 2016 agreement in another FTC case required the company to clearly disclose the terms of negative option sales offers.
“Defendants’ telemarketers did not disclose that, in fact, Defendants would charge them at 4:00 a.m. on the 18th day of the Free Trial Period, before the Free Trial Period elapsed,” the suit says.
“Consumers who called Defendants on the final day of the Free Trial Period to cancel their enrollment in Defendants’ membership programs already had been charged by Defendants, even though the Free Trial Period had not expired.”