The encyclopedia · Advertising & PR · Marketing decision · 2014
LeanSpa built fake news sites to sell açaí — and 'free trials' that billed $80 a month
Jan 2014: LeanSpa's marketers surrendered $7.3M — fake news sites pushed açaí 'miracle' pills, and free trials quietly became $79.95 monthly charges.
LeanSpa, LLC · 2014-01
What happened
LeanSpa's marketers built a network of fake news websites — pages styled like local journalism — to push acai berry and 'colon cleanse' weight-loss supplements as miracle products. The hook was a 'free trial' for a nominal shipping fee. What arrived instead was a $79.95 charge, and then recurring monthly billing.
The FTC and the State of Connecticut sued in December 2011 and shut the operation down; the settlement was announced on 7 January 2014 inside 'Operation Failed Resolution', the same sweep as Sensa and L'Occitane. The settling defendants surrendered roughly $7.3 million in assets against a judgment totalling more than $32 million, most of it suspended, and were permanently barred from negative-option billing, misrepresenting trials or news reports, and rapid-weight-loss claims.
In September 2014 the FTC mailed more than 400,000 claim forms to possible victims. The case became the Commission's reference for a pattern it has hunted ever since: the fake news site as ad placement, and the 'free trial' as the opening line of a recurring bill.
Why it happened
- The ad's disguise did the selling: a news-styled page made promotion read like reporting.
- 'Free trial plus shipping' concealed a $79.95 charge and recurring billing — the trial was the trap.
- The sweep treated the fake sites and the billing trick as one deception: misrepresentation from click to charge.
The lesson
A news-styled ad is a misrepresentation before it is a marketing channel, and 'free trial' means nothing if the billing is not free: regulators now read the funnel from click to charge.
Aftermath
The operation never reopened; more than 400,000 claim forms went out to victims in September 2014. 'Fake news site' entered the FTC's vocabulary as a named deception — a precedent LeanSpa paid for.
Sources
- FTC — Sensa and Three Other Marketers of Fad Weight-Loss Products Settle FTC Charges in Crackdown on Deceptive Advertising
- FTC — Leanspa, LLC, et al. (case 1123135)
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