Nutritional supplement marketer NutraClick has settled charges of unfair billing of consumers and must change its billing practices, the Federal Trade Commission said on Thursday (Sept. 22).
The FTC stated in a release that the firm “lured consumers” with what had been advertised as “free samples” of supplements and other products and then broke the law as NutraClick billed those customers recurring monthly fees without knowledge or consent. The FTC found that NutraClick did not disclose those charges, which ranged from $29.99 to $79.99 monthly. Those charges were levied unless consumers cancelled within an 18-day period tied to the free trial. The practices engendered more than 70,000 complaints. The recurring charges brought NutraClick millions of dollars, said the FTC, and the products were sold on the firm’s site and also in stores, such as CVS and GNC.
The settlement stipulates that NutraClick change its billing practices, disclose details about charges, obtain express written authorization and also offer a simple cancellation process.