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Court Upholds Penalties

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Court Upholds Penalties

A spokesman for Iowa Attorney General Tom Miller says Friday’s Iowa Supreme Court ruling upholding penalties against a Delaware marketing company is a key victory in the fight against consumer fraud. A-G spokesman, Jeff Greenwood, says the Vertrue Incorporated ruling backed the case the state presented…

The Supreme Court upheld the judgment that ordered Vertrue to pay 25-million dollars in restitution, 725-thousand dollars in court costs, and upped the civil penalty by 180-thousand dollars to three-million dollars. The company took orders for discount goods and services using what are called negative options. That’s where you sign up for a free trial for a service and you will keep getting billed for the service once the trial expires unless you specifically ask that it be stopped. Greenwood says the state proved the company was using illegal practices…

He says the company could ask the Iowa Supreme Court to reconsider its ruling or it could appeal to the U-S Supreme Court. Greenwood says the company has gone bankrupt, but state acquired a 32-million dollar appeal bond in the case, which means there is money available once the legal avenues have been exhausted.

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