Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Web hosting provider settles FTC charges for misleading consumers about refunds, (Apr 7, 2015)
Organizations Mentioned:Network Solutions, LLC
By Linda O’Brien, J.D., LL.M.
Web hosting provider Network Solutions, LLC has agreed to settle FTC charges that it misled consumers who bought its web hosting services by promising a full refund if they canceled within 30 days, when the company in reality withheld substantial cancellation fees from most refunds, the agency announced today.
In an FTC administrative complaint (In re Network Solutions, LLC, File No.132-3084), the agency alleged that Network Solutions, a domain name registrar and web hosting provider, offered web hosting packages with a “30 Day Money Back Guarantee,” but did not adequately disclose that it withheld part of the refund – up to 30 percent – from customers who cancelled within 30 days of buying an annual or multi-year package and registering an included domain name.
The proposed settlement order prohibits Network Solutions from failing to clearly disclose, before obtaining a customer’s billing information, the material terms of any money-back guarantee, or failing to refund the full purchase price in response to a request that complies with the terms of a guarantee. The settlement also bars the company from misrepresenting material terms of any refund or cancellation policy or money-back guarantee, or any other material fact about web hosting.
Companies: Network Solutions, LLC
News: ConsumerProtection FederalTradeCommissionNews