Opinion ID: 2718331
Heading Depth: 2
Heading Rank: 1

Heading: The Line of Credit Scheme

Text: One of Vertek’s first schemes involved the marketing of a “$7,500 Unsecured Credit Line” with promises such as “No Credit Check! No Employment Verification! No Security Deposit! Bankruptcy? No problem! Approval Guaranteed!” The advertisements failed to mention that consumers could only use the “line of credit” to make purchases from Global Gold’s online store.1 Consumers who clicked on the advertisements would be taken to so-called “landing pages,” which were deceptive websites where consumers could sign up for the scheme. Consumers entered personal data on two screens, which contained check boxes indicating that the customers agreed to certain terms and conditions, as well as a privacy policy. A section entitled “Offer Details” appeared in small print further down the page, below the “Submit” button. The details stated that customers would be charged a $39.95 monthly fee if they did not cancel the service, and that they would be automatically signed up for additional programs, each of which had its own “free trial” period, followed by recurring monthly charges. The terms and conditions suggested that consumers would receive a traditional credit card. Hidden deep in the fine print, however, the terms and conditions noted that the line of 1 Vertek marketed the same scheme under numerous brands, including Global Gold, First Plus Platinum, and First National Gold. 8 FTC V. KIMOTO credit could only be used “to purchase merchandise exclusively at the Global Gold Credit Services Web site.” The terms and conditions also noted, more than twenty paragraphs into the fine print that the consumer “accepted enrollment for up to 2 additional promotional product offers . . . .” Consumers who signed up for the line of credit often believed that they would receive a credit card, and also complained that they never agreed to be charged for the “upsells.” When consumers tried to cancel, Global Gold’s customer service operation made it exceedingly difficult, needlessly transferring customers to different websites or phone numbers, even though all of the calls ended up in the same service center. The scheme ran from June 2007 until May 2009, when the FTC shut it down. During that time, after considerable effort on their parts, approximately 94 percent of subscribers cancelled their subscriptions.