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Federal Trade Commission, Plaintiff v. AAFE Products Corporation, a California corporation; JBE International LLC, a California limited liability company; BSDC Inc., a California corporation; KADC Inc., a California corporation; BNRI Corporation, formerly known as Benheim & Rice Inc., a California corporation; Brian Bernheim, individually and as an owner and officer of BNRI Corporation; Joshua Bernheim, individually and as an owner and officer of AAFE, JBEI, BSDC, KADC, and Purestrike; Jared Coates, individually and as an officer or managing member of AAFE, JBEI, and Purestrike; and Robert Koch, individually and as an owner and officer of AAFE Products Corporation, Defendants.
FTC Matter/File Number
152 3129
Civil Action Number
Enforcement Type
Federal Injunctions
Federal Court
Southern District of California

Case Summary

In September 2017, a group of online marketers agreed to pay more than $2.5 million to settle FTC charges that it deceived consumers with “free” and “risk-free” trials for cooking and golfing products. According to a complaint filed in March 2017, the defendants offered “free” products, without clearly disclosing that by accepting the “free” product consumers were agreeing to be charged each month for a subscription if they did not cancel. They also allegedly misrepresented their return, refund and cancellation policies. The order setting the FTC’s complaint barred the defendants from misrepresenting the cost of any good or service, that consumers will not be charged, that consumers can get something for a processing or shipping fee with no further obligation, and that a product or service is free. In April 2020, the FTC announced it was sending refund checks totaling $488,629 to defrauded consumers.