- The FTC settled with Legion Media, LLC, KP Commerce, LLC, and Sloan Health Products, LLC and related individuals and entities to resolve allegations over unauthorized billing schemes for sales of CBD and keto products in violation of the FTC Act, the Restore Online Shoppers’ Confidence Act, and the Electronic Fund Transfer Act and related regulations.
- The complaint alleges that the companies ran a billing scheme by charging consumers for products advertised as “free” or that they did not consent to purchase, enlisting consumers in unwanted continuity plans, and making unauthorized debits from consumers’ bank accounts; facilitated their billing scheme by securing merchant accounts using shell entities to process unauthorized online charges, a practice referred to as “credit card laundering”; and used “dark patterns” to pressure consumers into providing contact and payment information, hide references to continuity plans, and disallow consumers from reviewing their final orders and total charges.
- Under the terms of the settlements, Sloan Media and Legion Media must pay $30 million each in civil penalties, and KP Commerce is required to pay $3 million in civil penalties, among other relief.