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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

BBB Tip of the Week

Attorneys general from 22 states, including Washington and Idaho, have reached an $11 million settlement with Classmates.com and FTD.com for allegations of misleading, unfair and deceptive practices in violation of state consumer protection laws.

The social networking site for Classmates and the floral delivery company FTD shared consumers’ personal information, including credit cards, in a process called “data pass” with third-party marketing companies, such as discount buying clubs and travel rewards programs. These third-party programs engaged in what is called “negative option marketing” in which a free trial and consent for subscription charges from consumers was assumed until the consumer opted out of paying. Data pass was banned in 2010 with the Restore Online Shoppers’ Confidence Act.

FTD and Classmates have not admitted to any misconduct but have agreed to changes in their business practices. Some of the changes include clear disclosures of automatic subscription renewal, easier subscription cancellation procedures, and making sure consumers consent to purchase a third-party program before being enrolled.

Consumers who believe they were affected by the deceptive marketing practices of Classmates or FTD may be eligible for restitution. In Idaho and Washington, consumers need to file a complaint with their respective Attorney General’s Office. In Washington state, online complaints can be filed at www.atg.wa.gov/file-complaint. In Idaho, information about how to file a complaint can be found at http://bit.ly/1czADiE.

Better Business Bureau offers the following advice when considering online offers and subscriptions:

• Read the terms and conditions of the offer. If subscription payment automatically begins after a free trial, get clarification on how to cancel.

• Research the company online at www.bbb.org.

• Double-check who’s making the offer. Affiliate marketing programs can create confusion about which company is offering a deal.

• Be careful of pre-checked boxes when signing up for a free trial.

• Regularly check your credit card and bank account statements.

Be sure to report deceptive billing practices to the Washington State Attorney General’s Office at www.atg.wa.gov/file-complaint and to BBB at http://go.bbb.org/1Fxp3vy or by calling (509) 455-4200.

By Erin T. Dodge, BBB editor