Copyright Mechanicsburg Patriot News
A Mechanicsburg company that sells collectible coins agreed to pay $750K to settle an investigation by the Attorney General’s office that found the company misled customers into unwanted subscription plans through deceptive sales practices. The settlement by America Mint, LLC, located at 5051 Louise Dr, comes after more than 200 consumer complaints about the company’s “negative option” subscriptions and other business practices, according to the attorney general’s office. Negative option subscriptions are where a customer’s silence or inaction is interpreted as acceptance of additional purchases. The office said they found American Mint misled customers into believing they were making one-time purchases, when they were being automatically enrolled in subscriptions that came with recurring shipments and additional charges. Consumers were often unaware of the subscriptions and given only short time frames to return items to avoid charges tied to the subscription plan. Under the settlement, American Mint will pay $750,000 to harmed customers, end subscription plans and stop collections efforts against more than 180,000 customers who were referred to debt collection agencies, according to a press release. The company will also revise its business and advertising practices, Attorney General Dave Sunday said. He said the company will no longer automatically enroll customers in subscription plans without their explicit consent. All outstanding consumer debt that was sent to collections will be discharged and consumers’ accounts will be cleared of outstanding charges. “Negative option features are a breach of state consumer laws as they are deceptive practices designed to enroll consumers into future purchases,” Sunday said. “When buying any products, be sure to read the terms and conditions thoroughly before committing to that purchase.” The lawsuit claimed American Mint violated the Pennsylvania Unfair Trade Practices and Consumer Protection Law by using a “bait and hook” strategy that lured customers into believing that they were receiving collectibles for a reduced price or free, while charging them for products that weren’t returned within 20 days. The press release said the company sent “confusing and misleading invoices.” The Attorney General’s Office also said American Mint used aggressive collection tactics, including charging for undelivered or unwanted products and failing to provide refunds, making it difficult to cancel subscriptions. American Mint advertises and sells collectible merchandise, mostly collectible coins, via direct mail, over the phone, through print advertisements, and through the American Mint website.
