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Investigates April 13, 2020 2 mins read

FTC sends refunds to victims of “risk-free” trial marketing scheme

Investigates ı By Marivic Cabural Summers

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The Federal Trade Commission (FTC) announced that the victims of deceptive “free” or “risk-free” trial marketing scheme will receive refunds.

According to the FTC, it is sending 14,370 refund checks totaling $488,629 to consumers who purchased golf and kitchen gadgets from a group of online marketers, AAFE Products Corp., and related defendants. Each consumer will receive an average refund of $34.

In March 2017, the Commission filed a complaint against the defendants for allegedly deceiving and luring consumers to buy “free” or “risk-free” cooking gadgets, golf equipment, and access to related online subscription services.

The defendants allegedly asked consumers to provide their credit card information to charge the shipping and handling for the “free product.” However, they did not disclose that they will also charge them a monthly subscription if they did not cancel.

Additionally, the FTC alleged that the defendants misrepresented their return, refund, and cancellation policies.

In September 2017, AAFE and related defendants agreed to settle the FTC charges. Under the settlement agreement, the defendants agreed to pay more than $2.5 million to the Commission, which will use the money for equitable relief including refunds to consumers.

The defendants are prohibited from engaging in deceptive marketing and are required to clearly disclose any negative option feature when consumers enter their billing information. They are also required to obtain consumers’ consent before charging them and to offer a simple way for consumers to cancel recurring charges.

AAFE marketed their products under different names, including, Kitchen Advance, Gourmet Cooking Online, Gourmet Cooking Rewards, Medicus Golf, Kick X Tour Z Golf Balls, Golf Online Academy, Golf Tour Partners, and Purestrike Swing Clinic.

Consumers who receive a check from the FTC should deposit or cash the check within 60 days. Those who bought AAFE products but do not receive a check should contact JND Legal Administration, the administrator of refunds for the case, at 1-833-900-1638.

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Marivic Cabural Summers

Marivic has been a freelance writer/journalist for nearly 20 years. She strictly adheres to the ethical standards in journalism. For her, integrity is everything. Readers deserve to know that real story. She previously worked as research analyst and editor at Lombardi Financial and has written for various websites including The Motley Fool, ValueWalk, IcannWiki and was a news writer/radio program producer at Nation Broadcasting Corporation. Marivic holds a BA in Mass Communications.

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