Facts

The Federal Trade Commission filed a complaint against UrthBox Inc. and its principal, Behnam Behrouzi, in relation to its customer reviews and free trial program.

PLAINTIFF'S CONTENTIONS: The FTC contended that defendant misrepresented that its customer reviews were independent. The FTC argued that the customers had been provided with free snack boxes or store credit to post positive reviews. Additionally, the FTC contended that defendant failed to adequately disclose key terms of its free trial automatic renewal programs. Specifically, the FTC contended that customers were automatically enrolled in an automatic six-month subscription after the free trial ended unless they canceled prior to the subscription date.

DEFENDANT'S CONTENTIONS: Defendant denied the contentions.

Result

The parties reached a settlement agreement in the amount of $100,000.