134.  FTC v. Xpics Publishing, Inc. (CD Cal July 2000)

Defendants: Xpics Publishing, Inc. and Mario G. Carmona and Brian M. Shuster

Type:  Unauthorized Credit Card Charges

The FTC alleged that Xpics misrepresented that consumers could obtain adult images online for "free" or for a "free" trial period by submitting credit card information for "age verification" purposes. The FTC alleged that Xpics used this credit card information to charge consumers for their purportedly "free" services and then made it difficult for consumers to cancel. The FTC alleged that Xpics even upgraded consumers to more expensive services rather than honor their cancellation requests.

The FTC obtained a Stipulated Final Judgement and Order from defendants that required them to issue refunds to consumers who respond to host a banner ad on Yahoo at http://dir.yahoo.com/Society_and_Culture/Sexuality/Activities_and_Practices.