STATE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL DEPARTMENT OF LEGAL AFFAIRS ASSURANCE OF VOLUNTARY COMPLIANCE

Transcription

1 STATE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL DEPARTMENT OF LEGAL AFFAIRS IN THE MATTER OF: STAMPS.COM INC. Attorney General Case No. L ASSURANCE OF VOLUNTARY COMPLIANCE Pmsuant to the Florida Deceptive and Unfair Trade Practices Act, Chapter 501, Part II, Florida Statutes (2014), the STATE OF FLORlDA, OFFICE OF THE ATTORNEY GENERAL, ("the Attorney General") investigated certain business practices by STAMPS.COM INC. ("STAMPS"), a Delaware corporation with its principal place of business at 1990 East Grand Avenue, El Segundo, California, Without admitting that it violated Florida law and solely for the purpose of resolving this matter only, STAMPS is now prepared to enter into this Assurance of Voluntary Compliance C'A VC"), and the Attorney General accepts this A VC in termination of its investigation pursuant to Section (6), Florida Statutes. MATTERS INVESTIGATED 1. STAMPS is an approved, licensed vendor of the United States Postal Service ("USPS") under the USPS PC Postage program whereby specialized technology providers in the United States provides USPS services to home offices, small offices and larger businesses, through PC Postage criteria established and regulated by the USPS. 2. For customers that decide to register as a customer and accept STAMPS' online terms and conditions, STAMPS charges customers $15.99 per month for the STAMPS service, whether customers use the STAMPS services or not. STAMPS discloses this information on its ( ; 1)

2 J website along with other pricing information for plans that are available in limited circumstances. Customers provide STAMPS with their bank account or credit card inf01mation enabling STAMPS to automatically charge or debit the monthly service fees from customers' bank accounts or credit card accounts. Following registration, customers receive a "welcome " to detailing the terms of the Stamps. com offer, including the $15.99 monthly charge and how to cancel their service plan. The monthly service fee is charged automatically each month until the service is terminated by the customer. 3. STAMPS provides customers with a 28 day initial trial period during which new customers are not charged for access to STAMPS' system. If customers do not cancel their STAMPS service plan on or before the 28th day following new customer registration, service fees continue until the service is tenninated. STAMPS cunently requires customers who wish to cancel their STAMPS service plan to call a toll-free customer service telephone number and speak with a STAMPS customer service representative to cancel the customer's service plan. If customers attempt to cancel their service plan through an , then the customers receive a responsive from STAMPS advising the customer to call the provided toll-free number to cancel. 4. STAMPS has been fully cooperative during the investigation of this matter. Such cooperation has involved the provision of detailed documents, sworn testimony and detailed information about the specific complaints and STAMPS' business operations. 5. STAMPS makes no admission that it engaged in any wrongdoing or committed any violation of Florida Statute 501, Part II. This AVC contains neither findings of fact nor conclusions of law. COMPLIANCE IT IS HEREBY AGREED BY THE PARTIES: { ; I)

3 I ' 6. STAMPS shall comply with the Florida Deceptive and Unfair Trade Practices Act, Chapter 501, Part II, Florida Statutes (2014) and Section , Florida Statutes (2014). 7. On or before December 31, 2015, STAMPS shall complete the implementation of its online customer cancellation method (the "Online Cancellation Process") which shall provide individual customers and home office customers with a means to cancel their STAMPS service plans online through a link, accessible after logging into the STAMPS secure website ( entitled "Cancel Plan", or a substantially similar heading. Once the Online Cancellation Process is made publicly available, Stamps shall have commercially reasonable time periods to fix any unexpected downtimes or technical errors with the Online Cancellation Process. 8. If STAMPS is unable to comply with this timetable, STAMPS agrees to provide the Attorney General with an affidavit from an officer of STAMPS providing an explanation of why the timetable cannot be complied with and providing an alternate date upon which compliance with this provision shall be made effective. The Attorney General may investigate the cause of STAMPS' inability to comply with this timetable, and may require strict compliance with this timetable if the Attorney General, in her sole discretion, detetmines that the timetable set forth above is capable of being complied with. 9. STAMPS shall disclose on the "home" page of the STAMPS website ( that it is "independent partner" of the U.S. Postal Services, or substantially similar language, in relative proximity to the primary trademark that is provided by the U.S. Postal Service to STAMPS. I 0. STAMPS shall provide a clear disclosure of its monthly service plan fee on either (i) the STAMPS home page (for example, "$15.99 per month"), (ii) on the horne page by reference to a clear link where pricing information will be provided (for instance, a clear "Plan Pricing" link directly from the home page where pricing options are provided), or (iii) on the ( ; I}

4 ... page of STAMPS's website where customers are first able to enter information to open an account with STAMPS. RECORD-KEEPING 11. Within 180 days of executing this A VC, STAMPS shall provide to the Attorney General a compliance affidavit that includes evidence that the STAMPS website has been revised a.s provided in Paragraphs 9 and 10 of this A VC. 12. STAMPS shall retain all records concerning compliance with this A VC for two years following the Execution Date of this AVC, and make them available to the Attorney General upon request. FEES AND COSTS 13. STAMPS shall pay Sixty Thousand Dollars ($60,000.00) for attorney's fees and costs by wire transfer to an account designated by the Attorney General or cashier's check to the Attorney General's Revolving Trust Account, sent to Gerald Johnson, Consumer Protection Division, Department of Legal Affairs, Office of the Attorney General, PL-01 The Capitol, Tallahassee, Florida , within 15 business days following execution by STAMPS of this AVC. MISCELLANEOUS PROVISIONS 14. Nothing in this AVC limits the Attorney General's ability to investigate and take action regarding any business practices by STAMPS apart from the Matters Investigated. 15. STAMPS shall not represent directly or indirectly that the Attorney General has approved any of its business practices, other than those specifically mentioned in this A VC. 16. In consideration for the fulfillment and acceptance of the various obligations set forth herein, no penalties are imposed under this AVC provided that STAMPS complies with this ( :1)

5 agreement and its obligations hereunder, the Attorney General waives the imposition of civil penalties under Section , Fla. Statutes. APPLICABILITY 17. This A V C shall bind STAMPS and its officers, directors, employees and agents, and shall be binding upon any other business entity run, managed, operated or owned wholly or in party by STAMPS, all as related to the matters set forth in this A VC. 18. STAMPS shall not effect any change in its way of doing business or organizational identity so as to avoid compliance with the terms and conditions set forth in this A VC. 19. STAMPS shall be responsible for making the substantive terms and conditions of this A VC known to its officers, directors, employees, agents, representatives, successors and assigns. FUTURE VIOLATIONS 20. Pursuant to Section , Florida Statutes, a material violation of this AVC is prima facie evidence of a violation of the Florida Deceptive and Unfair Trade Practices Act, Section 501, Part II, Florida Statutes. Any court proceedings attendant to this matter shall take place in Leon County, Florida. ACCEPTANCE 21. This A VC shall become effective upon its execution by STAMPS and the Division Director. The receipt of or deposit by the Attorney General of any funds pursuant to this A VC does not constitute acceptance by the Office of the Attorney General, and funds received will be returned promptly if this AVC is not accepted. ( ; I)

6 .. CAliFORNIA ALL-PURPOSE ACKNOWLIEIOGMIENT CIVIL CODE 1189 {:.,c<>-c -<':'<'-<X"~.C ~-<o<'..c<'.o<'ve<'~,.c<>.w.<7.c<'..b<'.c:<'~.<'x'.o<'.c<'.c<"'-<':<'.( :<'.<';.0C~.<?<'..?-:'.c<'...c<"..c<'..c<.>.<.:<'R.<'..:X".<:<'...-<:f:'(.'R.<'.<.'<'.<'i k-!cr.<'"'""] d ~ ~ State of California. } ~ ~ County of Leos 14wr 1 i' S, ') ' ' - ~ ~ onoprr { 1{;,16/Sbefore me, ULji.'+.lh. i ~ Dale..::--, {'.A 1 / J. H/ ere I sert Namo and nu ollho Ollie or ~ '' personally appeared " ':)o - ~ \. (,.(' \ :S ll VB l\1 8 Nar'ne(s) ol Si ner(s) g ~ i. ~ who proved to me on the basis of satisfactory ~ evidence to be the perso n~ whose name,(si is/jm~ 1 ~ subscribed to the within instrument and acknowledged g ~ to me that he/ tle/th,sy< executed the same in ~ ~ his/he(/t h~ i t authorized capacity@s), and that ~.. his/l)er/their signatu re~ on the instrument the ~.~. ~ person,(.s), or the entity upon behalf of which the if> ~ person{s) acted, executed the instrument. g CYNTHIA MARTINEZ. I certify under PENALTY OF PERJURY under the ~ ~ Comnilssicin laws of the State of California that the foregoing ~ ~ ~ Notary Public California z paragraph is true and correct. ~ ~-< Los Angeles County ~. 1 ~ My Comm. Expires Apr 25, 2017 ~ ~~ ~ ~. I ~~~~ I ~ Though the information below is not requir~~;:a~~!; prove valuable to persons relying on the docu~ent. : ~ and could prevent fraudulent removal and reattachment of this form to another document. ~ ~ Description of Attached Document, 1, II." _,., 'Ill,.' /i (., ~., ~~ ~ Title or Type of Document: ~i.t-e_.. cl LOne:\~ (~C.e...tf:"' ~.L f-ifdfner., q~ ;\f!;:l J;rf4 tf.r«i./~ ~ Document Date: - Nu mber of P:ges: 7 7\f0:: ~ ~ ~ Signer{s) Other Than Named Above: ~~.. ~ Capacity(ies) Claimed by Signer(s) ~ ~ Signer's Name: Signer's Name: ~ ~ 0 Corporate Officer- Title(s): 0 Corporate Officer- Title{s): ~ ~ ~ ~ lt Individual 0 Individual ~. ' 1 ~ 0 Partner - ::J Limited 0 General Top or thumb here 0 Partner - Ll Limited r.j General Top or thumb here ~ ~ 0 Attorney in Fact 0 Attorney in Fact ~ ~ 0 Trustee 0 Trustee ~ ~ 0 Guardian or Conservator.J Guardian or Conservator ~ ~ 0 Other: 0 Other: ~ ~ ~ ~ Signer Is Representing: Signer Is Representing: ~ ~ ~ I ~ i"g,.'!.!~~"g(;,'c(,"c<:;~;~... ~<;.~~"g;.~'g;..~'«;.,,<::~.. "<.:<;.'C<;.'g..~~ ~ < ~"(:,(,~" ;.<:;~..'C(.'<.;(;.'S.:<;."<":;g:;,-c<;.~'<.;<;."g;,'g.:'< 'V "S.:~,.. ~.«--~~-g;,~ym ~ 2010 National Notary Association NalionatNolary.org US NOTARY ( ) llem

7 FOR STAMP'ic~ ~~ l STATEOF ~~ COUNTY OF ~~-*> BEFORE ME, an officer duty author~c:e? ~ y.eknowledgments in the State of, personally appeared, '= a;9, and duly authorized representative of STAMPS.COM fni#~yacknowledged before me that he executed the foregoing instrument for th~ u~s ~here!n stated, on this day of C..6,cz-~ -- ;:::-; :;z_-- (signature) Produced Identification Or personally known to me. Type of Identification Produced: c~ ~~ ::4(-- '-:?\cj?/.. ;: Notary Public (signa ~ (Print, type or stamp commissioned name ofnotary) { ; 1}

8 FOR THE OFFICE OF THE ATTORNEY GENERAL ACCEPTED this 2:Z.. day of,;/6< 'j-r-y- STEVE ARD SENIOR ASSISTANT ATTORNEY GENERAL CONSUMER PROTECTION DIVISION DEPARTMENT OF LEGAL AFFAIRS OFFICE OF THE ATTORNEY GENERAL RDL D CTOR CONSUMER PROTECTION DIVISION DEPARTMENT OF LEGAL AFFAIRS OFFICE OF THE ATTORNEY GENERAL The Capitol, PL-0 1 Tallahassee, Florida { : I}