FTC Issues Refund Checks Worth 1.8 million to Compensate Consumers

 

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Late last year, the Federal Trade Commission, the national agency that works to promote fair competition and safeguard consumers begun sending refund checks to more than 79, 700 customers adding up to more than 1.8 million.

The FTC decided to pay back customers their money after determining that the innocent group had agreed to risk-free trial deals for cosmetics but were instead registered to other programs with recurrent per-month fees.

Up to 15 brands and seven people were involved in the scam, according to the watchdog’s June 2015 complaint. The accused were found guilty of trading LéOR Skincare, Dellure, Auravie, and Miracle Face Kit trademarked cosmetics through misleading “charge-free trials.”

Reports by the Trade Commission claim the perpetrators swayed consumers to give out their credit card data, allegedly to ease the payment of a small shipping fee. Instead, the scammers went ahead to use the info charge unapproved per-month deductions for items that were never ordered by customers.

The accused companies also face charges of misrepresentation. According to the agency, the perpetrators posed as BBB-accredited companies, which is in breach of the FTC Act.

To compensate affected customers, the agency sanctioned two different settlement orders that pooled together related perpetrators.

Oct 2016 marked the first order, which involved ten people and companies. The FTC banned the accused from continuing with the purported actions and mandated them to pay an amount to compensate affected clients. The second-order, sanctioned in June 2018, finalized FTC’s allegations against the remaining group of perpetrators.

Rust Consulting, Inc., the firm tasked with the role of issuing the refunds, begun mailing checks on November 21, 2019. Consumers anticipate refund checks worth around $22.95, and each must be cashed within a 60-day window.

The FTC also provided a hotline number 1-866-801-0473 for inquiries and for customers who feel they were ripped off by the Scheme and have never been compensated.

Final Words 

Compliance is key when doing business on- or offline. This is one of the many cases of “crimes of the past haunting your business years later.” Always trade line with federal laws knowing different watchdog agencies are all eyes on perpetrators.

Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter, and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest-rated eCommerce merchant account processor in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.