New Jersey to get $387K in settlement with FTD, Classmates
TRENTON, N.J. (AP) -- New Jersey will receive nearly $400,000 as part of a multistate settlement with international florist FTD and online social networking company Classmates Inc. over alleged deceptive advertising and billing.
Acting Attorney General John Hoffman announced the settlement Tuesday.
Both companies were subsidiaries of United Online Inc.at the time of the alleged violations.
They were accused of offering subscriptions without adequately informing consumers that the subscriptions would renew automatically.
They also allegedly allowed third-party promotions on their websites that also didn't adequately disclose billing practices.
New Jersey will receive about $387,000 as part of the settlement. FTD and Classmates are paying a total of $8 million to 22 participating states. Classmates also is required to pay $3 million total in restitution to consumers who bought subscription services directly from the company.