Online Event Registration
ACTIVE Network, LLCHeadquarters
About
Important information
- Pending Government Action:Government Action: BBB reports on known government actions involving business’ marketplace conduct:The Consumer Financial Protection Bureau v. ACTIVE Network, LLC
On October 18, 2022, the Consumer Financial Protection Bureau (CFPB) sued the online event registration company ACTIVE Network (ACTIVE), which is headquartered in Plano, TX.
The CFPB's lawsuit describes how ACTIVE automatically and unlawfully enrolled families into its discount club by using digital duplicity. Consumers, many of whom just thought they were registering for a community race or event, ended up being enrolled into a costly membership club.
Over the past decade, ACTIVE has driven up enrollments in Active Advantage through the use of dark patterns. Dark patterns are hidden tricks or trapdoors that companies build into their websites to get consumers to inadvertently click links, sign up for subscriptions, or purchase products or services. Additionally, while Active Advantage memberships have a 30-day free "negative option trial membership," negative option trial memberships automatically begin charging the membership fees at the end of the trial period.
The CFPB alleges that ACTIVE violated the Consumer Financial Protection Act by enrolling consumers in and charging them for discount club memberships without their knowledge, consent, or a full understanding of the material terms of the transaction. ACTIVE had multiple opportunities to stop its illegal practices given high rates of credit card chargebacks, numerous customer complaints, and ACTIVE's own data revealing that a significant number of consumers had been misled into Active Advantage enrollments. Nevertheless, ACTIVE continued to trick consumers with dark patterns and surprise charges. Specifically, the CFPB's lawsuit alleges that ACTIVE harmed consumers by:
* Duping event registrants into discount club memberships and sneaking charges onto users' credit cards
* Failing to notify Active Advantage members of fee increases
The CFPB is seeking injunctive relief, monetary relief for consumers, disgorgement of unjust gains, and a civil money penalty.
The matter is pending. For more details go to: https://www.consumerfinance.gov/about-us/newsroom/cfpb-sues-payment-platform-used-by-ymca-camps-race-organizers-for-junk-fee/
To view a copy of the CFPB complaint filed go to: https://files.consumerfinance.gov/f/documents/cfpb_active-network-llc_amended-complaint_2022-10.pdf
Business Details
- Local BBB:
- BBB serving North Central Texas
- BBB File Opened:
- 9/17/2014
- Business Started:
- 8/1/1999
- Business Incorporated:
- 6/9/2014
- Type of Entity:
- Limited Liability Company (LLC)
- Alternate Names:
- Active Advantage
- Business Management:
- Philip Petescia, Vice President
- Katelyn Jeffs
- Ms. Joy Ning, Customer Service Representative
Additional Contact Information
- Principal Contacts
- Katelyn Jeffs
- Customer Contacts
- Philip Petescia, Vice President
- Katelyn Jeffs
- Angie Wang
- Ms. Joy Ning, Customer Service Representative
- Additional Phone Numbers
- Other Phone: (469) 291-0300
- Other Phone: (866) 561-0647
- Other Phone: (888) 543-7223
- Additional Email Addresses
- Complaint: Email this Business
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