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Negative Option Scam Costs Skin Cream Operation $34M, Lifetime Ban In Settlement With FTC

Executive Summary

Defendant Gopalkrishna Pai and eight of at least 100 interrelated companies he owns agree to a lifetime ban on negative option marketing and a $34m settlement with the Federal Trade Commission, partially suspended based on inability to pay. The FTC says the settlement sends a "strong message to other unscrupulous marketers."

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