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1 STATE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL DEPARTMENT OF LEGAL AFFAIRS In the Matter of: AG Case Numbers: Ll CLICK INKS.COM, LLC, a Florida Corporation, Respondent ~/ ASSURANCE OF VOLUNTARY COMPLIANCE PURSUANT TO Chapter 501, Part 11, "The Florida Deceptive and Unfair Trade Practices Act," Florida Statutes (2011), the STATE OF FLORIDA, OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS (hereafter the "Department") investigated certain business practices of CLICKINKS.COM, LLC. (hereafter "Respondent"). Respondent is prepared to enter into this Assurance of Voluntary Compliance (hereafter "A VC") with the Department without an admission of wrongdoing and for the purpose of resolving this matter only. Pursuant to Section (6), Florida Statutes (2011), the Department, by virtue of the power vested in it by said statute, by and through its undersigned Director of Economic Crimes does accept this A VC in termination of the investigation into Respondent's customer services and online business practices. I. STATEMENT OF FACTS 1.1 Respondent is a Florida Limited Liability Company, and has a principal place of business located at 107 Commerce Street, Lake Mary, Florida, At all times during the course of this investigation Respondent was engaged in commerce by marketing and distributing printer inkjet cartridges, fax ink cartridges, laser toner, and fax toner to the public via the company website at Page 1 of 10

2 1.3 The Department initiated its investigation into the business practices of Clickinks.com, LLC to determine whether its practices are in compliance with Florida law. 1.4 Consumers who purchase ink from Respondent's website are often unaware at the time of purchase that items may be out of stock. Only after the transaction is completed, and the consumer has paid in full, does the consumer receives an notification that products ordered are not available. 1.5 During the online payment process, consumers are asked to affirm that they agree to the Respondent' s "terms and conditions." Consumer complaints reflect that the "terms and conditions" are not clearly and conspicuously disclosed at the time the transaction is entered into. While a check-box is incorporated into the payment process for the consumer to affirm that they "agree with our terms and conditions," that box has been automatically checked by Respondent. Therefore, the consumer is not required to make an unambiguous affirmation that they understand or agree to the terms and conditions of the transaction. 1.6 The "terms and conditions" contain, among other information, Respondent's complex return policy and limitations on exchanges, including restocking fees. 1.7 Respondent's website advertises a "30 DAY MONEY BACK GUARANTEE." This guarantee contradicts Respondent's current return policy as detailed in the "terms and conditions." Further, no explanation of the guarantee is provided when the link for the guarantee is clicked. 1.8 Consumer complaints allege that Respondent's customer service is repeatedly unavailable during Respondent's stated business hours. Page 2 oflo

3 II. DEFINITIONS 2.1 "Clear and Conspicuous" (including "clearly and conspicuously") shall mean that a statement, representation, claim or term is readily noticeable and reasonably understandable by the person(s) to whom it is directed. The following shall be considered in determining whether a statement, representation, claim or term is clear and conspicuous: (a) Whether it is presented in a coherent and meaningful sequence with respect to other statements, representations, claims, or terms being conveyed; (b) Whether it is in close proximity to the statement, representation, claim or term it clarifies, modifies, explains, or to which it otherwise relates; (c) Whether it is contradictory to any statement, representation, claim or term it purports to clarify, modify, or explain, or is otherwise contradictory or confusing in relation to any other statement, representation, claim or term being conveyed; (d) Whether it is conveyed by means of an abbreviation and, if so, whether the abbreviation is commonly understood by the public, or approved by federal or state law; (e) (f) Whether it is legible; Whether it is of sufficient prominence in terms of print, size and contrast, as compared with accompanying statements, representations, claims or terms, so as to be readily noticeable and reasonably understandable by the person(s) to whom it is directed; (g) Whether it is at a decibel level and speed so as to be readily noticeable and reasonably understandable by the person(s) to whom it is directed; and (h) Whether it appears for duration of time sufficient to allow a listener or viewer to have reasonable opportunity to notice, read, and understand. Page 3 of 10

4 Ill. COMPLIANCE 3.1 While engaging In commerce arising from or within the state of Florida, Respondents shall not violate any applicable state law, rule, and/or regulation, including, but not limited to, the following: a) The Florida Deceptive and Unfair Trade Practices Act as contained 111 Chapter 50 I, Part II, Florida Statutes (20 II); b) Section , Florida Statutes (201 I) Misleading Advertising; c) All Federal Trade Commission (FTC) rules and regulations regarding or relating to advertising, which require, among other things, that conditions material to any advertisement are disclosed clearly and conspicuously. 3.2 Respondents shall ensure that its customer service representatives are available to reasonably meet consumer demand during Respondents stated business hours. 3.3 Respondents shall, within thirty (30) days of the execution date of this A VC, modify its website at to reflect the availability of products so as to put a reasonable consumer on notice that they are either viewing or attempting to place an order for a product that is out of stock Should a consumer place an order for an out of stock item, Respondent shall not charge the consumer for that item until the product is available for shipment. 3.4 All terms, restrictions, and conditions placed on a consumer transaction including but not limited to, the sale, return, or exchanges of a product, shall be clearly and conspicuously disclosed to the consumer prior to the sales transaction being completed If Respondent's website requires a consumer affirmation that they have read and agree to any "terms and condition" to complete a sales transaction, the "terms and Page 4 of 10

5 conditions" shall be clearly and conspicuously disclosed in close proximity to the "Submit" button, or equivalent thereof If a check box is used to allow the consumer to affirm that they have read and agree to the "terms and conditions" of the transaction, the box shall not be automatically checked by default. It shall be the responsibility of the consumer to check the box to complete the transaction. 3.5 Respondent shall not advertise any claims or guarantees, including but not limited to money back guarantees, that are contradicted by Respondent's "terms and conditions" or current business practices. IV. MONETARY TERMS Consumer Restitution 4.1 Within five (5) days of the effective date of this A VC, Respondent shall start making restitution payments in the amount of FIVE THOUSAND FOUR HUNDRED SIXTY FOUR DOLLARS AND THIRTY EIGHT CENTS ($5,464.38). Restitution shall be completed within ninety (90) days of the effective date ofthis A VC as set forth in section Respondent shall refund each consumer named in the Department's list, (attached hereto as "EXHIBIT A: CLICKTNKS.COM LLC CONSUMER REFUND LIST," dated December 5, 20 II), the designated refund amount displayed next to that consumer's name. Respondents shall verify each consumer' s address prior to mailing a refund check. 4.3 Within one hundred (I 00) days of the effective date, Respondent shall provide the Department with a list of consumers who could not be located within the ninety (90) day Restitution period, including the Restitution amount attributable to each consumer. A single refund payment in an amount equal to those undeliverable refunds shall accompany this list. Page 5 of 10 d&_

6 Payment shall be in the form of a cashier's check made payable to the Department of Legal Affairs Escrow Fund and sent via certified mail, to: Rebecca H. Sirkle, Assistant Attorney General, Office of the Attorney General, Century Plaza, 135 W. Central Blvd., Suite 1000, Orlando, FL 3280 I. This payment shall be transferred by the Department to the Florida Department of Financial Services, Division of Unclaimed Funds. 4.4 Upon the completion of Respondent's final restitution payment in accordance with section 4. I through 4.3 above, Respondents shall submit a certified letter to the Department affirming that all restitution has been paid directly to the consumer or to the Department as undeliverable. Attorneys Fees and Costs 4.5 Respondent shall pay the sum of TWO THOUSAND DOLLARS ($2,000.00) to the Department for investigative costs and attorney's fees. Payment is due upon the date Respondent signs this A YC and shall be made by Respondent in the form of a cashier's check made payable to the Department of Legal Affairs Revolving Trust Fund. V. DONATION OF PRODUCT 4.2 In a good faith offer of settlement and for the benefit of Respondent's local community, Respondent will provide FIVE THOUSAND DOLLARS ($5,000) worth of product to the Orange county school district and FIVE THOUSAND DOLLARS ($5,000) worth of product to the Seminole county school district within twelve ( 12) months of the effective date of this A YC. Respondent will provide the name of the person facilitating the donation for each school district to the Department. Page 6 of 10

7 VI. EFFECTIVE UPON ACCEPTANCE 5.1 This A VC shall become effective upon its acceptance by the Director of Economic Crimes, who may refuse to accept it at hi s discretion. The receipt of or deposit by the Department of any monies pursuant to this A VC does not constitute acceptance by said Department, and monies received will be returned if this A VC is not accepted. This document may be signed in counterpart. VI. CONSTRUCTION OF A VC 6.1 This A VC is the result of joint negotiations on the part of The Department and the Respondent. This A VC shall not be construed for or against either party owing to one party being more heavily involved in the preparation of this A VC. VII. FUTURE VIOLATIONS 7.1 Any failure by the Respondent to comply with the terms and conditions of this A VC is by statute prima facie evidence of a violation of Chapter 50 I, Part II, Florida Statute (20 11 ). In the event that a court of competent jurisdiction makes a determination that such a violation has occurred, the Department may seek Penalties and other rei ief, as are allowed by law. VIII. APPLICABILITY 8.1 This A VC shall apply to and continuously bind the Respondent and its affiliated entities, successors, assigns and each of their officers, directors, members, agents, servants, and employees, whether acting directly or through any corporation, subsidiary, division, or other entity. 8.2 Respondent shall be responsible for making the substantive terms and conditions of this A VC known to the officers, directors, members, partners, employees, agents, Page 7 of 10

8 representatives, licensees, independent contractors, successors and assigns, engaged m Respondents' business practices. IX. CHANGES IN LAW OR BUSINESS PRACTICES 9.1 If the substantive laws cited in this A VC change due to amendment, repeal, or disposition by the legislature, an agency, or court so that they would permit any action prohibited by any section of this A VC, then that section of this A VC shall no longer have any force or effect. All remaining sections of this A VC shall be construed and enforced as if such illegal, invalid, or unenforceable clause, section, X. THIRD PARTY CAUSES OF ACTION I 0.1 Pursuant to Section (6), Florida Statutes (2011) the execution of this A VC does not limit, release, or constitute a waiver of any private legal rights, causes of action, or claims for remedies that any third party might raise against the Respondents. XI. APPROVAL OF RESPONDENT'S BUSINESS 11. I Respondents shall not represent, directly or indirectly, that the Department has approved any of the Respondent's business practices or Respondent's business structure, nor shall Respondents use the existence of this A VC to imply such approval. [This Space Intentionally Left Blank] Page 8 oflo

9 IN WITNESS WHEREOF, Respondent has caused this A VC to be executed by an authorized representative, as a true act and deed, in the County and State listed below, as ofthe date affixed thereon. BY MY SIGNATURE I hereby affirm that I am acting in my capacity and within my authority as 'Y>Rt.S\DE.N\ \ Q.0 of CLICKINKS.COM, LLC, and that by my signature the Respondent, its directors, managing members, officers, employees, agents, successors and assigns are bound to the terms and conditions of this Assurance of Voluntary Compliance. CLICKINKS.COM, LLC B~'rp STATE OF COUNTY OF t=-lor\dpt St. N'1 1 NO L E.. BEFORE ME, an officer duly authorized to take acknowledgments in the State of Florida, personally appeared Rcs\-\ANAL\ '"DP.!jv:\ and he acknowledged before me that he executed the foregoing instrument for the purposes therein stated, on this 3\ ST day of Sworn to and subscribed before me this 3f'INUf\R~ l 'Z..OI 2. 3\ ~ day of. CiGiaabiF; :do 11 ::'~-:~;i!~ ~~-;; BERNADETTE TORRES ~ : ; : MY COMMISSION # EE090068,,,,,,, -:. """' :,: EXPIRES May 03, 2015 I (407) Florida.com (print, type or stamp commissioned name of Notary Public) Personally known / or Produced identification (check one) Type ofldentification Produced: Page 9 of 10

10 ~'(..-~ Signed this,q,.t.day of~~~~201~ Rebecca H. Sirkle Assistant Attorney General Office ofthe Attorney General Department of Legal Affairs 135 West Central Blvd., Suite 1000 Orlando, Florida Accepted this ~"!{_ day of hl'j, 201V. ~~ =,s.e- Signed this &:~.!'.n ay of_/4_~_1,_: ~-=-:_~= ' 201J Richard Lawson Director of Economic Crimes Office ofthe Attorney General Department of Legal Affairs I 07 W Gaines Street Tallahassee, FL J Page 10 of 10 _( \A,itials

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