Antitrust Law Daily Wrap Up, STATE UNFAIR TRADE PRACTICES NEWS: Publisher agrees to settle Florida AG’s deceptive practices charges, (Jun 24, 2013)

By Tobias J. Gillett, J.D., LL.M.

Boardroom, Inc., a publisher of health, nutrition, and financial books, DVDs, and newsletters, has agreed to settle charges brought by the Florida Attorney General that it deceptively represented its products and marketed them by using trial offers and automatic subscription renewals, referred to as negative option plans, without clear and conspicuous disclosures to consumers, the Office of the Attorney General has announced. Boardroom has executed an Assurance of Voluntary Compliance setting forth the terms of the settlement.

According to the Office of the Attorney General, consumers had complained to the Office that Boardroom had sent them publications that they had not ordered, and sometimes billed them multiple times for those publications. Boardroom also allegedly advertised products as “free” when they came with risks and obligations that were not adequately disclosed. In addition, Boardroom allegedly made various deceptive advertising claims regarding the benefits and performance of its products.

Under the terms of the settlement agreement, Boardroom will mail approximately 35,000 consumer refund notices and provide a total refund amount up to $1.8 million to eligible Florida consumers who were enrolled in a negative option plan and paid for products any time from Aug. 29, 2008 to June 20, 2013, or who were sent and paid for an unordered product. Boardroom will also obtain sufficient consent and make appropriate disclosures to consumers regarding automatic subscription renewals; modify its use and representation of the term “free” in association with negative option marketing; and not deceptively represent the benefits or content of its products.

“Trial offers and automatic renewals that do not fully disclose all risks and obligations to the consumer are becoming more common and are a violation of Florida’s Deceptive and Unfair Trade Practices Act,” stated Attorney General Pam Bondi. “My office will remain committed to protecting Florida consumers from deceptive business practices.”

Companies: Boardroom, Inc.

News: StateUnfairTradePractices