FTC Targets Deceptive Website Legal Forms
In a recent settlement, the Federal Trade Commission (FTC) made it clear that deceptive website legal forms, particularly those that support “free” offers, will not be tolerated.
According to the FTC, the deceptive marketing schemes employed by the defendants netted over $450 million in sales. The result – the FTC came down hard on the defendants, with one individual defendant giving up all the money in his bank accounts, his house, automobile, and other personal property.
The takeaways from this settlement provide clear guidelines for all Internet marketers, particularly those who with sites that use “Free” offers as a lure for upsells to provide recurring revenue, or so-called “continuity” websites.
The Marketing Schemes
The offers were for products with broad market appeal, including weight-loss pills, teeth whiteners, health supplements, work-at-home options, access to government grants, free credit reports, and penny auctions. A key factor in the marketing scheme was the lure of “free” offers, including “free” trials. Consumers were often charged a monthly fee, typically $79.95, plus additional monthly recurring fees for “bonus” offers and upsells.
