FTC Halts Online Subscription Scheme that Deceived People with “Free

In addition to the ban on negative option marketing, the proposed settlement order against Schill and Zanelo, LLC[3]  bans the defendants from misrepresenting any fact material to consumers concerning any good or service, and requires the defendants to provide clear and conspicuous disclosures regarding fees and refunds.

That order also requires the defendants to obtain the express consent from consumers before charging them or debiting money from their bank accounts, and requires that they get preauthorization before making any electronic fund transfers. Finally, the order imposes a $74.5 million judgment against the defendants.

The proposed order against AH Media and Block contains the same conduct provisions as the Schill and Zanelo, LLC order, but imposes a $67 million judgment against the defendants.

The monetary judgments in both orders are partially suspended. In all, the defendants are required to turn over approximately $4,345,000. This money may be used to provide refunds to defrauded consumers.

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