Upcoming Regulations for Consumers Scammed by Misleading Facebook Ads | Business
Harrisburg, PA – The attorney general’s office has entered into settlement agreements with two Pittsburgh-based companies, Arrowmistic, LLC – also known as the Wicca Movement – and Cultured Quotes, LLC.
These companies generated sales by posting ads on Facebook that offered consumers “free jewelry” less shipping and handling charges, according to a statement from the GA’s office.
According to the survey, it was not clear from the advertisements that by accepting the offer of “free jewelry”, customers would automatically be enrolled in a membership club. Customers would be charged a recurring monthly membership fee ranging from $ 19.99 to $ 25.00 until and until they cancel the membership.
“These companies have funneled people from Facebook into their subscription clubs based on false promises,†AG Josh Shapiro said. “It is illegal for businesses to sign up customers for recurring subscription fees without giving consumers fair notice.”
According to the allegations in the regulation, Arrowmistic, LLC and Cultured Quotes, LLC violated Pennsylvania consumer protection law by falsely presenting offers as free to consumers when they were not and by failing to disclose to consumers the material terms and conditions of their subscription billing practices.
Under the agreed settlements, the companies paid a total of $ 25,000, to be distributed to consumers via refunds. In order to be eligible for a refund, consumers have 90 days to file a complaint with the Bureau of Consumer Protection at https://www.attorneygeneral.gov or by calling 1-800-441-2555.
In addition, the regulations prohibit businesses from charging any consumer a membership fee from a promotional offer marketed by businesses from January 1, 2017 to the date the regulation is filed, unless businesses have proof. that consumers have adequately consented to be charged.
The websites of both companies are currently not functioning, but both continue to operate their Facebook business pages.
The settlements were filed with the Allegheny County Court of Common Pleas by Senior Assistant Attorney General Amy L. Schulman of the Pittsburgh regional office.
