Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Ohio Attorney General settles Change-My-Address.com deceptive business practices charges, (May 14, 2014)

By Linda O’Brien, J.D., LL.M.

Change-My-Address.com, Change-of-Address.us, parent company Form Giant LLC, and its President, Matthew Riley, have agreed to settle deceptive business practices charges, Ohio Attorney General Mike DeWine announced on May 12. Consumers nationwide, and as many as 16,000 in Ohio, are entitled to refunds from the Cincinnati Internet-based business that offers change of address services. A national refund pool of $3 million has been established.

After finding Change-My-Address.com or Change-of-Address.us through Internet search engines, consumers would go the company website, believing it was the United States Postal Service (USPS) change of address service. The USPS changes only $1 for change of address services. When the consumer completed the appropriate address and forwarding information and clicked “continue” to finish the transaction, the page requesting payment information. The company, Form Giant LLC, programmed the payment information page so it automatically jumped down to the middle of the page where the credit card information was requested. The top of the payment page, which was deliberately obscured, stated that the consumer authorized the company to charge their credit or debit card at $19.95 fee to prevent fraudulent address changes and to cover processing and handling.

The company furthered the scheme by creating the impression on the websites that the cost of services would be limited to the $1 charge assessed by the USPS for address changes. A disclosure on the top of the webpage stated that the consumer would be assessed a one dollar processing fee charged by the USPS for submitting an online address change request that must be paid with a credit or debit card. Many consumers believed they would only be charged one dollar for the services and only learned of the $19.95 charge when it appeared on their billing statements. The company later raised the price and some consumers paid as much as $29.95. The company refused to refund the full amount of the charges when consumers contracted them.

Under the terms of the settlement, Change-My-Address.com or Change-of-Address.us have agreed to (1) provide up to $3 million in refunds disbursed among all affected consumers nationwide; (2) disclosure the actual full charge for change of address services to consumers; (3) disclose to consumers that they are not affiliated with the USPS; and (4) pay court costs. The company is enjoined from making any misrepresentations or material omissions in the context of their sale, advertising, or delivery of services, including misrepresentations regarding their true identity or affiliation with the USPS. The company is also required to email all consumers who have not already received a full refund.

“We are holding businesses that violate Ohio’s consumer protection laws accountable,” said Attorney General DeWine. “This company deceived consumers into thinking they were paying one dollar for the change of address service, when in reality, they were charged much more.”

Companies: Form Giant LLC

News: ConsumerProtection StateUnfairTradePractices OhioNews