Natural Health Pharmaceuticals

This company solicits Hoodia weight loss products via internet sales. As an introductory offer, they advertise a conditional 15 day free trial of the product if the customer agrees to provide billing information to pay S & H charges of $6.95. The terms and conditions of the offer indicate that customers will initially be sent a two month supply. If they cancel the shipments within 15 days, they can return any unused product for a refund. If no cancellation is received, respondents will be enrolled in a continuity program and will receive one shipment every three months consisting of 3 bottles at $29.95 per bottle.

Often, you can unknowingly join a plan simply by accepting an introductory offer of merchandise or services. Continuity plans may offer an introductory "free trial period" to let you check out the merchandise or service and decide whether to join the plan. If you keep the merchandise beyond the free trial period or fail to cancel the service within the free trial period, not only must you pay, you automatically become a plan member. Joining a continuity plan means you agree to the plan's sales method as long as you're a member. You'll automatically get periodic shipments of merchandise or delivery of services. You won't get any announcements or rejection forms before each shipment or service period. The shipments or services continue until you cancel your membership.

Sellers must give you information about the plan's terms and conditions, clearly and conspicuously, in their promotional materials. These terms may include; that you become a member if you accept the introductory merchandise or initial round of services, unless you cancel; or that periodic delivery of merchandise or services will occur - with no further action on your part; and will continue until cancellation is received. It also must disclose a description of the merchandise or services you agree to buy, say whether there's a minimum purchase, and how often you'll receive the products or services. An explanation of the plan's billing procedure for each shipment or period of service must also be provided, as well as the terms of the plan's refund or return policy; how and when you can cancel your membership; and the price of the goods or services if you fail to cancel, including shipping and handling, if applicable.