A social-networking website- Classmate Inc. and floral-delivery services-Florists’ Transworld Delivery have agreed to pay around $455,000 to Ohioans, and a part of an $11 MN payment to 22 states, including Illinois, to settle charges, which both the companies that were engaged in deceptive ads and billing practices.
The settlement was with Ohio Attorney General Mike DeWine and 21 state attorney general that were involved in a case, where the companies allegedly provided customers’ financial information including their credit cards’ account numbers to third-party companies to bill them for advertising offers that they haven’t opted for, such as travel-reward programs or buying clubs.
Madigan claimed that these companies’ practices were misleading. After customers completed an online transaction with Classmates of FTD, and if the customers didn’t cancel the advertised products or services, they were charges for those goods and services, which they haven’t requested for.
Classmate Inc. was also charged for failing to inform customers regarding their subscriptions would automatically renew and making termination complex.
Both, Classmate Inc. and Florists’ Transworld Delivery denied of any unlawful activities, but has agreed to pay $8 MN to the attorney general, in which Classmates will pay $3 MN to customers who were enrolled in its subscription services without their approval.
Classmates and FTD denied any wrongdoing, but agreed to make an $8 million payment to the attorneys general. In addition, Classmates will refund $3 MN to consumers whose enrolled subscriptions were renewed without their consent or who had trouble in terminating subscription services.
Customers seeking refunds from Classmates have up to 90 days from May 25 call Madigan’s Consumer Fraud Hotline, or go to their online website for more to get more details www.ohioattorneygeneral.gov.