Court Halts California Marketing Group for Deceptive Practices
A federal district court temporarily stopped a California marketing group from using bogus free trial offers to sell skincare products online.
A Federal Trade Commission (FTC) complaint charges seven individuals and 15 companies that sell Auravie, Dellure, LéOR Skincare, and Miracle Face Kit brand products with using deceptive offers to trick consumers into providing their credit or debit card information, and then charging them for the full price of the product and enrolling them in a buying program with recurring fees.
According to the complaint, since at least 2010, the defendants have marketed and sold skincare products on a variety of websites, such as aurviefreetrial.com, auraviewtrialkit.com, and mymiraclekit.com. The defendants use pop-up advertisements, banner ads, and advertising space on third-party websites, including Amazon.com, Huffingtonpost.com, and Lowes.com, to tout risk free trial offers to direct consumers to their websites, where they are instructed to provide their credit or debit card information to pay shipping fees of $4.95 or less to receive the trial offer.
The FTC alleges that consumers who provide their credit card information soon discover that they have been charged much more – typically $97.88 – under terms hidden in fine print on the defendants' websites. Consumers also are enrolled without their consent in subscription plans under which they are shipped more products and charged recurring fees. The defendants make it difficult to cancel the memberships, stop or avoid the charges, or obtain a refund.
The FTC alleges the defendants also misrepresented themselves as accredited by the Better Business Bureau with an A- rating. In fact, the company is not accredited and has a BBB rating of F.
In filing the complaint, the FTC is seeking a court order permanently barring the defendants from the allegedly illegal conduct and refunds for defrauded consumers.