FTC Settlement Halts Fraudulent Negative-Option Sales

The Federal Trade Commission (“FTC”) recently obtained court orders that banned the leaders of a fraudulent negative-option sales scheme from engaging in such tactics in the future. This settlement marks a significant moment in the ongoing effort to combat scams that manipulate consumers into enrolling in unwanted, recurring subscription services. The defendants, led by Blair McNea, Jennifer Johnson, and Danielle Foss, and involving 59 corporate entities, were found to have tricked consumers into believing they were agreeing to low-cost trial offers for tooth whiteners and other products, only to later charge them hundreds of dollars monthly for unauthorized subscriptions.