FTC Refunds $1.8M to Skincare Scam Victims

The FTC is Sending Refund Checks to Consumers Defrauded by Scammy “Risk-Free” Trial Offers for Skin Care Products

The Federal Trade Commission is mailing 79,771 refund checks totaling over $1.8 million to consumers who signed up for “risk-free” trial offers for skin care products, but were enrolled in negative option programs with recurring monthly charges.

The agency’s complaint, filed in June 2015, charged seven individuals and 15 companies with selling Auravie, Dellure, LéOR Skincare, and Miracle Face Kit branded skincare products through deceptive “risk-free trials.” According to the FTC, the defendants convinced consumers to provide their credit card information, purportedly to pay nominal shipping fees, but instead used it to impose unauthorized monthly charges for unordered products.

The agency also charged defendants with misrepresenting themselves as accredited by the Better Business Bureau, in violation of the FTC Act.

The FTC approved separate settlement orders with two sets of related defendants.

First, in October 2016, 10 individual and corporate defendants settled the FTC’s charges. These orders barred the defendants from the conduct alleged in the complaint and required them to pay money to provide refunds to affected consumers.

The second settlement, approved in June 2018, resolved the FTC’s charges against the remaining defendants. In addition, the court entered default judgments against 19 other corporate defendants and one individual defendant.

Rust Consulting, Inc., the refund administrator for this matter, will begin mailing checks today. The average check amount is $22.95, and it must be cashed within 60 days, as indicated on the check. The FTC never requires consumers to pay money or provide information to cash refund checks. Consumers who have questions about the mailing should call 1-866-801-0473. If a consumer believes they lost money to this scheme but has not received a check, they can contact the refund administrator using the hotline number below.

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357).