Vermont will receive over $179,000 as its share of an $8 million consumer protection settlement reached between 22 States and Classmates, Inc, Florists Transworld Delivery, Incand FTD.com Inc. The multistate investigation into the misleading advertising and billing practices of Classmates and FTD focused on the companies’ relationship with third parties who used “negative options” to sell third party membership programs to consumers doing business online with Classmates and FTD. A negative option is an arrangement where goods or services are charged to you automatically unless you tell the seller you do not want them.
“This settlement will result in important protections to ensure that Vermont consumers are not deceived into paying for unwanted goods or services through negative option marketing,” said Attorney General William H. Sorrell.
In addition to the $8 million payment to the States, Classmates and FTD are required to make substantial changes to their marketing practices. The settlement imposes restrictions and conditions on future marketing activities by Classmates and FTD designed to alert consumers that they are being presented with third party offers and to clarify the terms of those offers. Classmates must also establish a $3 million restitution fund for consumers who were enrolled in Classmates’ subscription service without their authorization or who experienced difficulty when trying to cancel their Classmates subscriptions.
Vermont consumers who seek a refund from Classmates must file a complaint with the Attorney General’s Office athttps://www.uvm.edu/consumer/?Page=settlements.htmlor by calling 800-649-2424 no later than August 26, 2015. Consumers who have already filed Complaints with the Attorney General’s office do not need to do so again.
Vermont AG: May 26, 2015