Mantra Films to Settle Fraud Case With FTC

The marketers of the sexually explicit “Girls Gone Wild” videos and DVDs agreed to pay nearly $1.1 million to settle government claims that the company shipped unordered products and then charged customers.

As part of the settlement with the Federal Trade Commission, California-based Mantra Films Inc. will pay more than $548,000 to people who received the videos or DVDs and returned them but did not get a refund for shipping costs. The FTC said about 84,000 customers would receive refunds of at least $5.

Mantra also will pay a civil penalty of more than $541,000.

The settlement requires Mantra to get customers’ consent before billing them for products. The company also must clearly disclose terms of its membership in its “continuity” programs.