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The settlement also requires the defendants to pay 6,165 in redress.
The Commission’s complaint charges JDI Dating and Thomas with violating the FTC Act by misrepresenting the source of the communications from fake profiles and by failing to disclose the automatic renewal terms.
The complaint also charges the defendants with violating the Restore Online Shoppers’ Confidence Act (ROSCA) by failing to: disclose clearly the terms of the negative-option plan, obtain express informed consent before charging consumers, and provide a simple way to stop recurring charges.
The settlement order prohibits the defendants from misrepresenting material facts about any product or service and, from failing to disclose clearly to potential members that they will receive communications from virtual profiles who are not real people.
The order requires that, before obtaining consumers’ billing information for a product with a negative-option feature, the defendants must clearly disclose the name of the seller or provider, a product description and its cost, the length of any trial period, the fact that charges will continue unless the consumer cancels, the deadline for canceling, and the mechanism to stop recurring charges.