An interrelated network of skin cream marketers that offered products for a “nominal” shipping and handling fee and later charged consumers full price without their knowledge has agreed to a lifetime ban on negative option marketing as well as forfeiture of funds and assets to the Federal Trade Commission.
Negative Option Scam Costs Skin Cream Operation $34M, Lifetime Ban In Settlement With FTC
Defendant Gopalkrishna Pai and eight of at least 100 interrelated companies he owns agree to a lifetime ban on negative option marketing and a $34m settlement with the Federal Trade Commission, partially suspended based on inability to pay. The FTC says the settlement sends a "strong message to other unscrupulous marketers."
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