Member Directory
ntl-top-100-logo-345px
Member Directory

$10M Settlement in FTC Automatic Renewals Suit

We’ve written about automatic renewals before, but the $10 million price tag in the FTC’s settlement with the operators of ABCmouse should grab your attention.

The FTC alleged that over a three-year period, the company advertised membership programs without clearly disclosing that the programs would automatically renew at the end of the term. The automatic renewal was not disclosed during the checkout flow. Instead, it was “buried” in small print amidst other dense text that consumers would only see if they clicked on a link to read Terms & Conditions.

Even though ABCmouse prominently advertised “Easy Cancellation,” the FTC alleged that cancellation was very difficult. Consumers who tried to cancel were required to navigate a lengthy and confusing process that often prevented many of them from completing their cancellations. In fact, evidence suggests that hundreds of thousands of consumers started the cancellation process, but remained enrolled.

Read the source article at Ad Law Access

Find an Attorney

The National Trial Lawyers stands as an esteemed, exclusive association comprising top-tier trial attorneys nationwide. Whether you require a Civil Plaintiff Lawyer or a Criminal Defense Lawyer in your state, our network ensures access to premier legal expertise tailored to your needs.
Find Attorney

Read More Legal News

© Copyright 2022, All Rights Reserved | National Trial Lawyers
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram