Attorney General Pam Bondi News Release


September 27, 2013
Media Contact: Jenn Meale
Phone: (850) 245-0150

Attorney General Bondi’s Office Obtains $500,000 Settlement for Alleged Negative Option Scam

TALLAHASSEE, Fla. –Attorney General Pam Bondi today announced that Florida-based company Smart Savings, LLC. has agreed to a settlement under which it will pay up to $300,000 in restitution to consumers who were allegedly enrolled in a negative option scam. Smart Savings Center, through its affiliated entities and websites, sells merchandise connected to a membership club and charges a monthly fee for discounted movies, posters and books. According to the complaint filed on Sept. 13, Smart Savings did not properly disclose that purchases on their websites would result in automatic enrollment in the membership club. The complaint further alleges that the company refused to honor consumers’ requests to cancel their membership. This alleged activity violates a 2010 settlement agreement between the Attorney General’s Office and Smart Savings and violates Florida’s Deceptive and Unfair Trade Practices Act.

“Negative option scams deceive consumers into enrolling in automatic renewals,” stated Attorney General Pam Bondi. “My office will remain vigilant in ensuring the businesses abide by Florida’s Deceptive and Unfair Trade Practices Act.”

As part of the court-approved settlement, all entities and websites have agreed to do the following: obtain the proper consent and make appropriate disclosures to consumers regarding automatic subscription renewals; modify their use and representation of the term “free” in association with negative option marketing; and refrain from any deceptive representations of the benefits or content of their products. The monetary portion of the settlement calls for settling companies to make a payment of $300,000 to the Attorney General’s Office, funds which the office will use first for consumer restitution, with the balance going to offset the office’s investigative costs and the cost of future enforcement. The settling companies also have agreed to donate $200,000 to the Attorney General’s Office’s Seniors vs. Crime program.

The other companies named in the settlement are as follows: RSOP Holdings LLC; RSOP Holdings Delaware LLC.; XACTI LLC.; XACTI Global LLC; Rebategiant.com LLC; Discount Movie Sale LLC; Discountpostersale.com LLC; Discount Book Sale, LLC; Bestbrandvalues.com LLC; Smartsavingscenter.com LLC; Hotbooksale.com LLC; Hotmoviesale.com LLC; Best Buyer Discounts, LLC; Royalalarcade.com, LLC; and Nuvaceutical, LLC.

These companies did business through the following websites: BestBrandValues.com, SmartSavingsCenter.com, Nuvalife.com, DiscountBookSale.com, Discount MovieSale.com, DiscountPosterSale.com, TopMusicZone.com, HotBookSale.com, HotMovieSale.com and SmartGameShopper.com.

Follow this link to view a copy of the complaint: http://myfloridalegal.com/webfiles.nsf/WF/MMFD-9BXPMY/$file/Smart+Savings+Complaint.pdf

Follow this link to view a copy of the settlement: http://myfloridalegal.com/webfiles.nsf/WF/MMFD-9BXPPD/$file/smart+savings+settlement.pdf