Refunds on the way for 'free trial' customers

PHOENIX - Consumers who signed up for certain free trial periods could be getting a refund.

On Tuesday, the Federal Trade Commission (FTC) announced a $9.8 million settlement with Health Formulas, LLC. 

In its complaint, federal prosecutors accuse the company of marketing health supplements, ranging from wrinkle creams to fat burning pills. 

The FTC says the company used "fake free trials", and "tricked people into disclosing credit and debit card information, and then enrolled them without their permission in a costly negative-option membership program that charged them monthly for new shipments," in a press release.  

Checks are being sent out to 227,000 beginning on Tuesday.  According the FTC the average payout is $43.

 

 

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