Abc mou se12/9/2023 ![]() ![]() The company again failed to adequately disclose that consumers would be charged automatically and indefinitely when the initial period ended, the complaint alleges. ![]() Although ABCmouse advertised “Special Offer” 12-month memberships for $59.95, it failed to tell consumers that the plans would automatically renew indefinitely, leading them to incur additional charges.ĪBCmouse also offered consumers who enrolled in a 30-day free trial membership the ability to extend their membership beyond the trial period at a cost of $39.95 for 12 months or $29.95 for 6 months. Users can access ABCmouse content on reading, math and other subjects through the company’s website or mobile app.Īccording to the FTC’s complaint, the company failed to adequately disclose key membership terms when marketing ABCmouse to consumers from 2015 until at least 2018. “People are relying more than ever on remote learning and other online services, and companies need to be up-front about automatic renewals and get permission before charging customers.”Īge of Learning operates a membership-based online learning tool called ABCmouse Early Learning Academy for children between two and eight years old. “ABCmouse didn’t clearly tell parents that their subscriptions would renew automatically, and then the company made it very difficult for them to cancel,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection. The complaint also alleges the Southern California-based company unfairly billed ABCmouse users without their authorization and made it difficult for consumers to cancel their memberships, preventing consumers from avoiding additional charges. Online children’s education company Age of Learning, Inc., which operates ABCmouse, will pay $10 million and change its negative option marketing and billing practices to settle Federal Trade Commission charges that it made misrepresentations about cancellations and failed to disclose important information to consumers, leading tens of thousands of people to be renewed and charged for memberships without proper consent. Todd Kossow, Director, FTC’s Midwest Regional OfficeĬall-in lines, which are for media only, will open 15 minutes prior to the start of the call. Note: The FTC will host a media call-in on this announcement with About the FTC Show/hide About the FTC menu items.News and Events Show/hide News and Events menu items.Advice and Guidance Show/hide Advice and Guidance menu items.Competition and Consumer Protection Guidance Documents.Enforcement Show/hide Enforcement menu items. ![]()
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