Question: Mantra Films sold Girls Gone Wild DVDs on the Internet. When customers ordered one DVD,...
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Question: Mantra Films sold "Girls Gone Wild" DVDs on the Internet. When customers ordered one DVD, the company would enroll them automatically in a "continuity program" and send them unordered DVDs each month on a "negative-option" basis, charging con- sumers' credit cards for each DVD until consumers took action to stop the shipments. Is Mantra's marketing plan legal? Strategy: Review the various sales regulations-more than one is involved in this case. Result: This marketing plan was deceptive because customers were not told that they would be enrolled in the continuity program. Also, Mantra could not legally bill for the unordered DVDs. Under the unordered merchandise rule, consumers had the right to treat them as gifts.
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