The Federal Trade Commission (FTC) stopped the operations of a group of companies engaged in deceptive online risk-free trial offers that lured consumers into enrolling in negative option plans.
Gopalkrishna Pai and the eight companies he owns and operates are facing a lawsuit filed by the FTC for allegedly committing deceptive practices and other unlawful actions. Pai’s companies facing charges included F9 Advertising LLC, Ace Initiative Group LLC, Connected Ad Station LLC, Fastlane Sales LLC, Hyper Marketing Solutions LLC, Media Redefined LLC, Primed Marketing LLC, and Responsive Media LLC.
In the complaint, the consumer watch dog alleged that Pai and his companies violated the Confidence Act (ROSCA) through negative option marketing.
According to the FTC, Pai and his companies acted as a common enterprise selling skin care products online from February 2016 to August 2017. The products sold in pairs by the defendants included Vita Luminance and Regenelift, Derma Vibrance and Nuevoderm, Revived Youth Cream and Revived Youth Serum, and Aura Youth Cream and Aura Youth Serum.
