FTC Rules Network Solutions Misled Consumers on 30 Day Money Back Guarantee

MONDAY,29 JUNE 2015 The Domains
According to the news from Domain.cn on June 29th,Network Solutions got slapped by the FTC for not providing clear terms with their 30 day money back guarantee. Network Solutions did not make it clear that they hold up to 30% of the refund. There was no fine by the FTC but there will be penalties should they violate the terms set forth by the FTC.

From the FTC website:

Following a public comment period, the Federal Trade Commission has approved a final consent order involving Network Solutions, LLC, which misled consumers who bought its web hosting services by falsely promising a full refund if they canceled within 30 days.

In an administrative complaint issued in April 2015, the FTC alleged that Network Solutions, a domain name registrar and web hosting provider, offered web hosting packages with a “30 Day Money Back Guarantee,” but did not adequately disclose that it withheld up to 30 percent of the refund from customers who cancelled within 30 days of buying an annual or multi-year package and registering an included domain name.

The consent order prohibits Network Solutions from failing to clearly disclose, before obtaining a customer’s billing information, the material terms of any money-back guarantee, or failing to refund the full purchase price in response to a request that complies with the terms of a guarantee. The order also bars the company from misrepresenting material terms of any refund or cancellation policy or money-back guarantee, or any other material fact about web hosting, and it requires Network Solutions to keep records demonstrating compliance with the order for five years.

The Commission vote approving the final order was 5-0.

NOTE: When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $16,000.

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