FTD.COM, Inc. operates an online flowers and gifts shop. The company offers farm fresh flowers, daisies, lilies, mixed bouquets, orchids, roses, silk and preserved flowers, sunflowers, tulips, homes and gardeners flowers, vera vang flowers, and silk botanicals; and blooming, green, orchid, rose, and bonsai and bamboo plants. It also offers balloons and bears, chocolate dipped delights, sweets and chocolates, collectibles and gifts, gifts for him, fresh fruits, exclusive gifts collections, corporate gifts, jewelry boutiques, gift baskets, floral jewels birthstone collections, luxury collections, personalized gifts, spas and fragrances, wines and champagnes, and gourmet treats and gifts. The c...
3113 Woodcreek Drive
Downers Grove, IL 60515
Founded in 1993
Attorney General Lisa Madigan Announces $11 Million Settlement with Classmates Inc., Florists Transworld Delivery, Inc. and FTD.com Inc
May 26 15
Attorney General Lisa Madigan, along with the Attorneys General of 21 states announced an $11 million settlement with Classmates, Inc., along with Florists Transworld Delivery, Inc. and its online counterpart FTD.com Inc. (FTD), in response to allegations that the companies engaged in unfair and deceptive marketing. Madigan and her counterparts allege Classmates and FTD allowed third-parties to utilize negative option marketing practices to sell membership programs to consumers. Negative option marketing is a sales practice in which a seller interprets a consumers failure to reject an offer or cancel an agreement as approval to charge the consumer for goods or services. These third-party marketers offered programs, such as discount buying clubs and travel reward programs, often immediately following consumers online transactions with Classmates or FTD. Classmates and FTD would share consumers personal information, including credit card account numbers without consumers knowledge, which enabled third parties to bill consumers for the advertised offers unless the consumer proactively canceled the service or product delivery. Federal law bans such data sharing practices. Now agreement includes a number of terms to ensure that consumers knowingly consent to the purchase of any membership program offered by a marketing partner of Classmates or FTD. The agreement also: Prohibits the companies from misrepresenting the reason for requesting a consumers account information; Prohibits third-party marketers from using FTD and Classmates names or logos in the title of a membership program, and any offer must be made after the consumers have concluded their transactions with Classmates or FTD to ensure that buyers understand they are receiving a separate and distinct offer from a different company; Requires companies to clearly and concisely inform consumers that they will be transferred to another site to receive a membership offer, and consumers must consent to the transfer before they are sent to the new site; Prohibits Classmates/FTD and its marketing partners from stating an offer is free or risk free if the offer will convert to a paid subscription; and Prohibits Classmates/FTD from making misrepresentations or omissions concerning the reason or purpose for which a consumer is receiving an offer for enrollment in a membership program.