Network Solutions, LLC
The FTC alleged that Network Solutions advertised a 30 Day Money Back Guarantee on web hosting while withholding up to 30 percent of the refund from customers who cancelled in time, without adequately disclosing it.
Resolved. Refunded, settled, ceased operating, or the claim did not hold up. Kept for the record.
Identity
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- Registrations
- In the Matter of Network Solutions, LLC (FTC case 132-3084, final consent order 2015)
- Jurisdictions
- United States (federal)
A full refund, minus up to thirty percent
Network Solutions, a domain registrar and web hosting provider, sold hosting packages advertised with a “30 Day Money Back Guarantee.”
According to the FTC’s administrative complaint, the company did not adequately disclose that it withheld up to 30 percent of the refund from customers who cancelled within those 30 days, if they had bought an annual or multi-year package and registered an included domain name.
The guarantee was the reason to risk an annual commitment. Withholding a substantial cancellation fee from most refunds is the part that made the promise worth less than it read.
The order
Network Solutions must clearly disclose the material terms of any money-back guarantee before it takes a customer’s billing information, and must refund the full purchase price when a request complies with the guarantee’s terms. It is barred from misrepresenting the terms of any refund or cancellation policy, or any other material fact about web hosting, and must keep records showing compliance for five years.
The FTC credited the Better Business Bureau serving Metro Washington DC and Eastern Pennsylvania with assisting.
What is not established
A consent order is for settlement purposes only and is not an admission that the law was violated. The supplied documents state no monetary relief.
Sources
Every claim above rests on one of these. Open them and check.
- Enforcement action April 7, 2015
- Enforcement action June 26, 2015
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First recorded April 7, 2015 · Last updated June 26, 2015