Mantra Films to Settle Fraud Case With FTC
The marketers of the sexually explicit “Girls Gone Wild” videos and DVDs agreed to pay nearly $1.1 million to settle government claims that the company shipped unordered products and then charged customers.
As part of the settlement with the Federal Trade Commission, California-based Mantra Films Inc. will pay more than $548,000 to people who received the videos or DVDs and returned them but did not get a refund for shipping costs. The FTC said about 84,000 customers would receive refunds of at least $5.
Mantra also will pay a civil penalty of more than $541,000.
The settlement requires Mantra to get customers’ consent before billing them for products. The company also must clearly disclose terms of its membership in its “continuity” programs.
The biggest entertainment stories
Get our big stories about Hollywood, film, television, music, arts, culture and more right in your inbox as soon as they publish.
You may occasionally receive promotional content from the Los Angeles Times.
