The online people finder and background check provider Checkpeople.com has been ordered to pay $775,000 in connection with a civil case that alleged the business automatically charged customers for ongoing subscriptions without their express consent, the Los Angeles County District Attorney’s Office announced Thursday.
Under a judgment negotiated with Checkpeople.com, the company was fined $700,000 in penalties and ordered to pay $50,000 in restitution to the Consumer Protection Prosecution Trust Fund, along with $25,000 in investigative costs, according to the D.A.’s office.
Checkpeople was also ordered to clearly and conspicuously disclose its automatic-renewal terms, receive affirmative consent from consumers to the terms through a separate checkbox before charging for an automatic renewal or continuous service and to email customers a confirmation of the transaction after they pay, which clearly includes the automatic-renewal terms.
It was additionally ordered to allow customers to easily cancel the subscriptions, including online, effective upon request; and to avoid using allegedly misleading online sales information and payment mechanisms, according to the District Attorney’s Office.
The California Auto Renewal Task Force — established by the D.A.’s office in 2015 — investigates businesses to locate any violations of state and federal law regulating auto-renewal contracts.
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