FTC Distributes $2.8 Million in Refunds to Consumers Scammed by “Free Trial” Offers

The Federal Trade Commission (“FTC”) is issuing over $2.8 million in refunds to individuals who fell victim to deceptive "free trial" offers for personal care products and dietary supplements. The refunds come as part of the FTC’s ongoing efforts to hold companies accountable for misleading marketing practices that trick consumers into signing up for unwanted subscriptions. The refund process stems from an investigation into Apex Capital Group, its principals Phillip Peikos and David Barnett, and their related entities. These companies engaged in a multi-year scam that began in 2014, marketing seemingly risk-free "free trial" offers for a variety of products. Consumers were promised that they would only need to pay shipping fees for these trial products, but hidden in fine print were costly recurring charges for the full price of the products. Worse still, many consumers were unknowingly enrolled in negative option continuity plans, which meant they were automatically billed for monthly shipments unless they actively canceled.