This time it’s FXsupplements.com, the makers of Acai Berry Maxx.<\/p>\n
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FORT WORTH<\/strong> \u2013 Texas Attorney General Greg Abbott today resolved the state\u2019s investigation into an Arlington dietary supplements distributor. Under the settlement, FXsupplements.com agreed to stop shipping unauthorized orders to customers, refrain from making false health claims, and clearly disclose its terms of service to future purchasers. The online vendor also agreed to provide refunds to customers that it overcharged for its products.<\/p>\n
Distributor Austin Hilton widely advertised the \u201cacai berry\u201d supplement as reducing the risk of heart attack, Alzheimer\u2019s disease and cancers. His advertising materials also claimed the product could limit premature aging. Web advertisements indicated that the Acai Berry Maxx product was \u201cnaturally potent in antioxidants\u201d and could flush up to 30 pounds of waste and toxins from the body. Hilton\u2019s claims are not backed by sound scientific studies, and they have not been approved by the U.S. Food and Drug Administration (FDA).<\/p>\n
When customers clicked on the FXsupplements.com or acaiberrymaxx.com advertising links, they were informed that they would have four minutes to place their orders before the free trial of the Acai Berry Maxx product expired. Customers who completed orders were asked to pay a $5.95 shipping and handling fee. To make the required payment, purchasers had to provide their credit or debit card numbers.<\/p>\n
The Attorney General\u2019s investigation found that this transaction led customers to a \u201cterms and conditions\u201d page that failed to clearly disclose several problematic provisions. By accepting the \u201cfree\u201d 15-day supply valued at $65, customers unwittingly entered into a \u201cnegative option\u201d plan with the company. Under this scheme, FXsupplements.com would automatically \u201crenew\u201d orders after the 14-day trial period expired without customers\u2019 express authorization to continue. The renewal forced customers to pay $80 for one-month supplies of Acai Berry Maxx, even after customers demanded cancellation.<\/p>\n
According to state investigators, the negative option language embedded within the \u201cterms and conditions\u201d violated state law. Under the Texas Deceptive Trade Practices Act, terms providing for ongoing contractual obligations must be disclosed clearly and conspicuously on the contract.<\/p>\n
Investigators also discovered that FXsupplements failed to promptly ship orders. As a result, customers did not receive their free products until the free-trial had nearly expired. This gave customers little time to try the products without obligation and decide whether to order additional products. Meanwhile, Hilton and his companies automatically put customers onto a revolving shipment of prepaid products after the trial period ended without customers\u2019 knowledge or consent.<\/p>\n
While Hilton touted Acai Berry Maxx as a remedy or cure for diseases, FXsupplements\u2019 \u201cterms and conditions\u201d contained fine-print language acknowledging that the products were not intended to diagnose, treat, cure or prevent any disorders and diseases. Importantly, the FDA has not approved Acai Berry Maxx as a drug with the curative properties claimed by Hilton.<\/p><\/blockquote>\n
“Negative option” marketing is just the legal term for the “free trial scam” Paul describes in this video<\/a>. I have to admit, though,\u00a0that 4 minute deadline\u00a0was an especially\u00a0underhanded ploy\u00a0– it virtually guaranteed that no one could read\u00a0through all the “terms and conditions” before the “deadline”.<\/p>\n