Online retailer Thrive Market Technologies, Inc. has agreed to a court-ordered judgment arising from enforcement of California’s Automatic Renewal Law (ARL) and False Advertising Law (FAL), District Attorney John T. Savrnoch has announced.

The ARL prohibits companies from automatically renewing consumer subscriptions without conspicuously disclosing the terms of the subscription and without the consumer’s consent.

The ARL also requires companies to provide a post-purchase acknowledgment of the subscription terms.

The FAL prohibits companies from misrepresenting their products and services, including the nature of their automatically renewing subscriptions, the prices of their products and services, and any savings associated with consumer purchases.

The Santa Barbara County District Attorney’s Office and Los Angeles County District Attorney’s Office led the case for the California Automatic Renewal Task Force (CART), which also includes the District Attorney’s Offices of San Diego County, Santa Clara County, and Santa Cruz County, and the Santa Monica City Attorney’s Office.

Thrive Market is a membership-only, online health food and products retailer. CART’s investigation found that the company did not clearly and conspicuously disclose the required subscription terms before enrolling consumers in its membership and auto-ship programs.

Thrive Market also failed to provide consumers with the proper acknowledgment after enrolling them in these programs, Savrnoch’s office said.

In addition, CART’s investigation found that the price savings, or “reference price” comparisons, Thrive Market advertised for the products it sold were false or misleading.

The Stipulated Judgment entered by the Santa Barbara Superior Court enjoins Thrive Market from violating the FAL and ARL, and from making reference price comparisons in violation of applicable state and federal law.

The judgment also orders Thrive Market to pay $1,004,000 in civil penalties, $450,000 in restitution to Thrive Market customers, and $96,000 in investigative costs to the prosecution task force.

Thrive Market cooperated in the resolution and agreed to bring its relevant business practices into compliance,

Online retailer Thrive Market Technologies, Inc. has agreed to a court-ordered judgment arising from enforcement of California’s Automatic Renewal Law (ARL) and False Advertising Law (FAL), District Attorney John T. Savrnoch has announced.

The ARL prohibits companies from automatically renewing consumer subscriptions without conspicuously disclosing the terms of the subscription and without the consumer’s consent.

The ARL also requires companies to provide a post-purchase acknowledgment of the subscription terms.

The FAL prohibits companies from misrepresenting their products and services, including the nature of their automatically renewing subscriptions, the prices of their products and services, and any savings associated with consumer purchases.

The Santa Barbara County District Attorney’s Office and Los Angeles County District Attorney’s Office led the case for the California Automatic Renewal Task Force (CART), which also includes the District Attorney’s Offices of San Diego County, Santa Clara County, and Santa Cruz County, and the Santa Monica City Attorney’s Office.

Thrive Market is a membership-only, online health food and products retailer. CART’s investigation found that the company did not clearly and conspicuously disclose the required subscription terms before enrolling consumers in its membership and auto-ship programs.

Thrive Market also failed to provide consumers with the proper acknowledgment after enrolling them in these programs, Savrnoch’s office said.

In addition, CART’s investigation found that the price savings, or “reference price” comparisons, Thrive Market advertised for the products it sold were false or misleading.

The Stipulated Judgment entered by the Santa Barbara Superior Court enjoins Thrive Market from violating the FAL and ARL, and from making reference price comparisons in violation of applicable state and federal law.

The judgment also orders Thrive Market to pay $1,004,000 in civil penalties, $450,000 in restitution to Thrive Market customers, and $96,000 in investigative costs to the prosecution task force.

Thrive Market cooperated in the resolution and agreed to bring its relevant business practices into compliance, Savrnoch’s office said.