Advertising Industry
Industry: Email Alert RSS Feed'Girls Gone Wild' settles down.(Legal Review)(Federal Trade Commission)
Response, September, 2004 by Jacobs, Ronald M.; Knowles, Jeffrey D.
On July 30, the Federal Trade Commission (FTC) released a settlement with Mantra Films and Joseph Francis for various violations of FTC-administered statutes and regulations stemming from the sales of "Girls Gone Wild" videos. Mantra marketed the videos though short- and long-form direct response television spots and via its Web site.
The FTC complained consumers were not informed that by purchasing a single video for $9.99 (plus shipping and handling) they would be enrolled in a continuity program where they would receive monthly films for $19.99 (plus S & H). Although the FTC alleged violations of a variety of different laws in the complaint, and also in the injunctive portion of the settlement agreement, the monetary penalty was only $1.1 million. ...
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