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Financial Services Law Insights and Observations

FTC Settles with Technology Company for Allegedly Misleading Consumers about Refunds

FTC

Consumer Finance

On April 7, the FTC announced a proposed settlement of an administrative complaint alleging that a web hosting provider violated the Federal Trade Commission Act. According to the press release, the company offered web hosting packages to consumers with the guarantee of receiving their money back if they canceled within 30 days. The company allegedly did not adequately disclose that customers who had purchased a new annual or multi-year web hosting package and registered an included domain name would receive only a partial refund if they canceled within 30 days. The proposed settlement prohibits the company from misleading consumers about its cancellation and refund policies.