Video Dating Service Settles FTC Charges

Encino-based Great Expectations Creative Management Inc., a franchiser of video dating services, and 23 of its franchises agreed to settle Federal Trade Commission charges that they did not fully disclose to consumers the cost of their services.

The franchises will pay refunds totaling more than $200,000 to consumers who were misled by undisclosed charges, the FTC said.

The cost of a membership at Great Expectations ranges from $975 to $3,100, which can be paid either in a lump sum or through a financing arrangement. The FTC said the company and some of its franchises did not tell consumers the correct finance charges and percentage rates for their contracts, as required by the federal Truth in Lending Act.

The Great Expectations franchises covered by the settlement operate businesses in 27 cities, including Los Angeles, Denver, Houston and Washington.

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