The Federal Trade Commission (FTC) is returning nearly a million dollars to consumers from the cosmetics and supplements subscription service NutraClick LLC. The FTC alleges that contrary to a 2016 agreement, NutraClick continued its practice of charging customers without their consent.
In total, 17,064 individuals will receive a total of $973,000 in refunds. Previously, the FTC extracted a $1.04 million fine from the company for violating a 2016 court order, in which they were fined $350,000.
According to the FTC’s statement, NutraClick lures customers in with free trials that vary in length, but are most commonly eighteen days. At the end of the trial period, NutraClick would charge customers up to $69.99 and would continue to do so monthly until customers called to end their subscription.
The FTC argues that this practice violates the Restore Online Shoppers’ Confidence Act (ROSCA) and FTC regulations. NutraClick, they say, should have clearly disclosed that they would charge customers before taking their payment information.
Signed into law in 2010, ROSCA prohibits online retailers from charging customers unless it has disclosed clearly all material terms of the transaction and obtained the consumer’s express informed consent to the charge.