FTC Takes a Bite Out of UrthBox Snacks for Deceptive Business Practices
Including failure to disclose compensated reviews and auto-renewal policies
Last week, the Federal Trade Commission took a bite out of healthy snack box company UrthBox and CEO Behnam Behrouzi, when it settled a complaint with the FTC for deceptive business practices. In the nine-page complaint, the FTC alleges the San Francisco-based company failed to disclose that customers were given incentives in exchange for positive online reviews, and they did not adequately disclose key terms of their “free trial” auto-renewal program to new customers. UrthBox will pay $100,000 to the FTC to compensate customers deceived by the free trials.
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