Pennsylvania attorney general settles with company alleged to have violated state consumer protection law with ‘deceptive’ negative option feature
On October 30, the attorney general of Pennsylvania announced a settlement agreement with a seller of collectible merchandise alleged to have violated the state’s Unfair Trade Practices and Consumer Protection Law. The attorney general alleged that the company’s deceptive practices included luring customers into subscription plans using a negative option feature, failing to clearly and conspicuously disclose material terms of the company’s subscription plan, issuing confusing and misleading invoices, threatening to send consumers’ accounts to collections agencies, failing to deliver purchased products, sending unsolicited merchandise and invoices, and failing to provide refunds as advertised. Under the terms of the settlement, the defendant agreed to pay $707,986.17 in consumer restitution and $42,013.83 to reimburse in part the state’s litigation costs.