Order subject to periodic penalty payments imposed on Wise Men Media

The Netherlands Authority for Consumers and Markets (ACM) has imposed an order subject to periodic penalty payments on Wise Men Media B.V for refusing to provide information that ACM needs for its investigation. ACM has launched an investigation into Wise Men Media for having possibly misled consumers when selling ‘free’ products with paid follow-up shipments (this practice is also called a ‘subscription trap’). Consumers had submitted indications to ACM about these practices.

Powers of ACM

As regulator, ACM can demand from businesses any information that is needed for its investigations. Businesses are required to provide such information. Wise Men Media has failed to comply with ACM’s repeated demands for information. That is why ACM has imposed an order subject to periodic penalty payments, forcing the company to provide the information after all. If it does not comply with the order, the total fine may be as high as EUR 75,000.

What is the matter?

In 2015, ACM devoted special attention to the practice of sending unsollicited follow-up shipments. Following indications submitted to consumer information portal ConsuWijzer, ACM launched an investigation into Wise Men Media. Consumers had reported that the company advertised its products as ‘free,’ whereas, in practice, they were not. Advertising products as free, yet charging consumers costs for follow-up shipments to which consumers expressly have not given their consent constitutes an unfair commercial practice. Products that Wise Men Media sold in this manner were Green Tea Slim Patch, Lemon Power Patch, Green Coffee Slim Pro and Power Quit Smoking Patch. These had been sold to consumers over the Internet and on Facebook until mid-2015. ACM continues its investigation into the commercial practices of Wise Men Media.