NextClick settles false-marketing charges
This article was originally published in The Tan Sheet
NextClick Media, Kenneth Chan and Albert Chen will pay $315,000 to resolve allegations they sold "bogus smoking cessation patches" and illegally debited consumers' bank accounts, the Federal Trade Commission announces Nov. 9. The defendants allegedly failed to tell consumers they would automatically charge them up to $99.95 monthly for products unless they cancelled if they accepted a "free" 10-day trial of various herbal products, including smoking cessation patches Nicocure, Stop Smoking 180 and Zero Nicotine (1"The Tan Sheet" May 12, 2008). The settlement is the latest in an FTC crackdown on negative-option marketing (2"The Tan Sheet" Feb. 16, 2009)
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The Federal Trade Commission is suing NextClick Media for allegedly deceptive practices involving "free trials" of smoking cessation products, FTC announces May 7. According to the commission, trials for Nicocure were not free, the firm's patches did not work as claimed and the operation was illegally debiting consumers' bank accounts, including making charges without authorization. NextClick Media has agreed to abide by an order in U.S. District Court for the Northern District of California barring the firm from making deceptive claims, restricting its ability to dissipate assets, requiring it to preserve records and other evidence, and accounting for the money the firm made from its venture, FTC says. A trial date has not been set...
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