The Federal Trade Commission has reached an agreement with Member Source Media, an online advertising company for its use of spam emails with misleading subject lines that failed to disclose to consumers that they would have to spend money to receive "free" items.
When people visit the company's Web sites they have to go through a series of ads from third parties to "qualify" for their "free products." Then they must "participate in" a number of third-party promotions that require them to do things such as purchase products, subscribe to satellite television or apply for multiple credit cards.
The settlement requires that Member Source Media clearly disclose in its ads that people have to spend money or commit to other obligations to qualify for a free product or service. The settlement also requires the company to provide a list of what a person will have to do for their chosen item.
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