Facts

The Federal Trade Commission filed a complaint against defendants AH Media Group, LLC, its manager and registered agent Henry Block, signatory to AH Media's Operating Agreement Alan Schill, and Zanelo, LLC claiming that defendants operated an online subscription scam involving personal care products and dietary supplements.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that defendants offered trials of their skincare products to consumers for $4.99 or less; however, consumers who enrolled were also enrolled in a continuity plan without their consent. Eventually defendants started charging consumers for the full price of $90. Plaintiff contended that defendant misrepresented the conditions of the trial offers to consumers in violation of Section 5(a) of the FTC Act against unfair and deceptive practices, Section 4 of the Restore Online Shoppers' Confidence Act, and Section 907(a) of the Electronic Fund Transfer Act.

DEFENDANTS' CONTENTIONS: Defendants denied the contentions.

Result

Zanelo, LLC, and Alan Schill entered into a stipulated judgment for a permanent injunction and monetary judgment for $74.5 million.