International Law

"Free Trial" Weren't Free, Patches Didn't Work As Claimed, FTC Alleges

I love the short cons, as little tricks that you have to solve to figure how the bs works.

The long cons are always made up of a series of short cons with a plot.

The FTC reported on a interesting case, "Free Trial" Smoking Cessation Patch Promoter Halts Deceptive Practices; Trials Weren't Free, Patches Didn't Work As Claimed, FTC Alleges: "An operation that offered 'free trials' of its herbal products, including smoking cessation patches, has agreed to halt its allegedly deceptive practices, pending trial."

"An operation that offered “free trials” of its herbal products, including smoking cessation patches, has agreed to halt its allegedly deceptive practices, pending trial.

The Federal Trade Commission sued, alleging that the trials weren’t free, the patches didn’t work as claimed, and the operation was illegally debiting consumers’ bank accounts without their authorization.

The defendants have now agreed to abide by a federal court order that bars them from making deceptive claims, restricts their ability to dissipate assets, requires them to preserve records and other evidence, and account for the money they made from their venture.

According to the FTC, NextClick Media operates several Web sites that offer “free” 10- day trials for their products, including herbal stop-smoking patches called “Nicocure,” “Stop Smoking 180,” and “Zero Nicotine.” They advertise that consumers will only pay for shipping and handling with ads in large type that say “FREE 10-Day Supply plus shipping and handling,” and “TRY IT FREE.” Consumers who want to try the “free trial” provide a credit or debit card to pay for the shipping charge.

But, the FTC alleges, the trials weren’t free. Consumers weren’t sent a 10-day trial size package. They were sent a 30-day supply and had to pay for all 30 days of product if they chose to keep it.

Consumers who chose to return the unused product paid postage and were assessed a $7.95 restocking fee, neither of which was disclosed adequately by the sites.

The agency also alleged that the operators failed to disclose adequately that consumers who signed up for the free trial were agreeing to be enrolled in a continuity program and would be automatically billed monthly charges of up to $99.95 until they cancelled.

But, the operators deliberately misled consumers into believing they would not be automatically enrolled.

Statements on their Web site claimed, “Your 10 day trial is absolutely free!

Charges will only be made to your credit card if you find that StopSmoking180 is the product for you and you choose to continue with the stop smoking 180 program for a discounted membership price.”

(Via Federal Trade Commission (FTC) - Text of Press Releases.)

I like this technique: "over deliver" and count on some of the suckers not complaining that they didn't get a free sample. Those that do, hit them with a "restocking" fee.

Absolutely free - a ten day trial that cannot possibly achieve anything. You aren't going to stop smoking in 10 days, so why try the trial size?

Could this be, once again, the favourite con trick: offer something for nothing?

Full post as published by Misleading Advertising Law on May 14, 2008 (boomark / email).