According to the FTC, the ABCmouse lied about its advertised “easy cancellation.” In fact, the company did not clearly disclose how consumers can easily cancel their membership.
Tens of thousands of consumers complained that they did not know that their membership renews automatically and they did not authorize the company to charge their accounts on an ongoing basis.
In a statement, FTC Consumer Protection Bureau Chief Andrew Smith said, “ABCmouse didn’t clearly tell parents that their subscriptions would renew automatically, and then the company made it very difficult for them to cancel. People are relying more than ever on remote learning and other online services, and companies need to be up-front about automatic renewals and get permission before charging customers.”
FTC prohibits ABCmouse from misrepresenting its negative options
In addition to the $10 million monetary judgment, the settlement order prohibits ABCmouse from making any misrepresentations related to its negative options.
