Mantra Films to Settle Fraud Case With FTC
The marketers of the sexually explicit “Girls Gone Wild†videos and DVDs agreed to pay nearly $1.1 million to settle government claims that the company shipped unordered products and then charged customers.
As part of the settlement with the Federal Trade Commission, California-based Mantra Films Inc. will pay more than $548,000 to people who received the videos or DVDs and returned them but did not get a refund for shipping costs. The FTC said about 84,000 customers would receive refunds of at least $5.
Mantra also will pay a civil penalty of more than $541,000.
The settlement requires Mantra to get customers’ consent before billing them for products. The company also must clearly disclose terms of its membership in its “continuity†programs.
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