STATE OF FLORIDA
OFFICE OF THE ATTORNEY GENERAL
DEPARTMENT OF LEGAL AFFAIRS
IN THE MATTER OF:
STAMPS.COM INC.
Attorney General Case No. L14-3-1023
ASSURANCE OF VOLUNTARY COMPLIANCE
Pmsuant to the Florida Deceptive and Unfair Trade Practices Act, Chapter 501, Part II,
Florida Statutes (2014), the STATE OF FLORlDA, OFFICE OF THE ATTORNEY GENERAL,
("the Attorney General") investigated certain business practices by STAMPS.COM INC.
("STAMPS"), a Delaware corporation with its principal place of business at 1990 East Grand
Avenue, El Segundo, California, 90245.
Without admitting that it violated Florida law and solely for the purpose of resolving this
matter only, STAMPS is now prepared to enter into this Assurance of Voluntary Compliance
C'AVC"), and the Attorney General accepts this A VC in termination of its investigation pursuant
to Section 50 1.207(6), Florida Statutes.
MATTERS INVESTIGATED
1.
STAMPS is an approved, licensed vendor of the United States Postal Service
("USPS") under the USPS PC Postage program whereby specialized technology providers in the
United States provides USPS services to home offices, small offices and larger businesses, through
PC Postage criteria established and regulated by the USPS.
2.
For customers that decide to register as a customer and accept STAMPS' online
terms and conditions, STAMPS charges customers $15.99 per month for the STAMPS service,
whether customers use the STAMPS services or not. STAMPS discloses this information on its
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website along with other pricing information for plans that are available in limited circumstances.
Customers provide STAMPS with their bank account or credit card inf01mation enabling STAMPS
to automatically charge or debit the monthly service fees from customers' bank accounts or credit
card accounts. Following registration, customers receive a "welcome email" to detailing the terms
of the Stamps.com offer, including the $15.99 monthly charge and how to cancel their service plan.
The monthly service fee is charged automatically each month until the service is terminated by the
customer.
3.
STAMPS provides customers with a 28 day initial trial period during which new
customers are not charged for access to STAMPS' system.
If customers do not cancel their
STAMPS service plan on or before the 28th day following new customer registration, service fees
continue until the service is tenninated. STAMPS cunently requires customers who wish to cancel
their STAMPS service plan to call a toll-free customer service telephone number and speak with a
STAMPS customer service representative to cancel the customer's service plan. If customers
attempt to cancel their service plan through an email, then the customers receive a responsive email
from STAMPS advising the customer to call the provided toll-free number to cancel.
4.
STAMPS has been fully cooperative during the investigation of this matter. Such
cooperation has involved the provision of detailed documents, sworn testimony and detailed
information about the specific complaints and STAMPS' business operations.
5.
STAMPS makes no admission that it engaged in any wrongdoing or committed any
violation of Florida Statute 50 1, Part II. This AVC contains neither findings of fact nor conclusions
of law.
COMPLIANCE
IT IS HEREBY AGREED BY THE PARTIES:
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6.
STAMPS shall comply with the Florida Deceptive and Unfair Trade Practices Act,
Chapter 501, Part II, Florida Statutes (2014) and Section 501.0117, Florida Statutes (20 14).
7.
On or before December 31, 2015, STAMPS shall complete the implementation of
its online customer cancellation method (the "Online Cancellation Process") which shall provide
individual customers and home office customers with a means to cancel their STAMPS service
plans online through a link, accessible after logging into the STAMPS secure website
(www.stamps.com), entitled "Cancel Plan", or a substantially similar heading. Once the Online
Cancellation Process is made publicly available, Stamps shall have commercially reasonable time
periods to fix any unexpected downtimes or technical errors with the Online Cancellation Process.
8.
If STAMPS is unable to comply with this timetable, STAMPS agrees to provide the
Attorney General with an affidavit from an officer of STAMPS providing an explanation of why
the timetable cannot be complied with and providing an alternate date upon which compliance with
this provision shall be made effective.
The Attorney General may investigate the cause of
STAMPS' inability to comply with this timetable, and may require strict compliance with this
timetable if the Attorney General, in her sole discretion, detetmines that the timetable set forth
above is capable of being complied with.
9.
STAMPS shall disclose on the "home" page of the STAMPS website
(www.stamps.com) that it is "independent partner" of the U.S. Postal Services, or substantially
similar language, in relative proximity to the primary trademark that is provided by the U.S. Postal
Service to STAMPS.
I 0.
STAMPS shall provide a clear disclosure of its monthly service plan fee on either
(i) the STAMPS www.stamps.com home page (for example, "$15.99 per month"), (ii) on the horne
page by reference to a clear link where pricing information will be provided (for instance, a clear
"Plan Pricing" link directly from the home page where pricing options are provided), or (iii) on the
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page of STAMPS's website where customers are first able to enter information to open an account
with STAMPS.
RECORD-KEEPING
11.
Within 180 days of executing this AVC, STAMPS shall provide to the Attorney
General a compliance affidavit that includes evidence that the STAMPS website has been revised
a.s provided in Paragraphs 9 and 10 of this AVC.
12.
STAMPS shall retain all records concerning compliance with this A VC for two
years following the Execution Date of this AVC, and make them available to the Attorney General
upon request.
FEES AND COSTS
13.
STAMPS shall pay Sixty Thousand Dollars ($60,000.00) for attorney's fees and
costs by wire transfer to an account designated by the Attorney General or cashier's check to the
Attorney General's Revolving Trust Account, sent to Gerald Johnson, Consumer Protection
Division, Department of Legal Affairs, Office of the Attorney General, PL-01 The Capitol,
Tallahassee, Florida 32399- 1050, within 15 business days following execution by STAMPS of this
AVC.
MISCELLANEOUS PROVISIONS
14.
Nothing in this AVC limits the Attorney General's ability to investigate and take
action regarding any business practices by STAMPS apart from the Matters Investigated.
15.
STAMPS shall not represent directly or indirectly that the Attorney General has
approved any of its business practices, other than those specifically mentioned in this AVC.
16.
In consideration for the fulfillment and acceptance of the various obligations set
forth herein, no penalties are imposed under this AVC provided that STAMPS complies with this
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agreement and its obligations hereunder, the Attorney General waives the imposition of civil
penalties under Section 501.207, Fla. Statutes.
APPLICABILITY
17. This A V C shall bind STAMPS and its officers, directors, employees and agents, and
shall be binding upon any other business entity run, managed, operated or owned wholly or in party
by STAMPS, all as related to the matters set forth in this AVC.
18. STAMPS shall not effect any change in its way of doing business or organizational
identity so as to avoid compliance with the terms and conditions set forth in this A VC.
19. STAMPS shall be responsible for making the substantive terms and conditions of this
AVC known to its officers, directors, employees, agents, representatives, successors and assigns.
FUTURE VIOLATIONS
20.
Pursuant to Section 501.207, Florida Statutes, a material violation of this AVC is
prima facie evidence of a violation of the Florida Deceptive and Unfair Trade Practices Act, Section
501, Part II, Florida Statutes. Any court proceedings attendant to this matter shall take place in
Leon County, Florida.
ACCEPTANCE
21.
This AVC shall become effective upon its execution by STAMPS and the Division
Director. The receipt of or deposit by the Attorney General of any funds pursuant to this AVC does
not constitute acceptance by the Office of the Attorney General, and funds received will be returned
promptly if this AVC is not accepted.
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CAliFORNIA ALL -PURPOSE ACKNOWLIEIOGMIENT
CIVIL CODE § 1189
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CYNTHIA MARTINEZ
I certify under PENALTY OF PERJURY under the
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Comnilssicin 11 202 1749
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2010 National Notary Association· NalionatNolary.org • 1·800·US NOTARY (1·800·876·6827)
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FOR
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COUNTY OF
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BEFORE ME, an officer duty author~c:E? ~ y.eknowledgments in the State of
STATEOF
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personally appeared
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and duly
authorized representative of STAMPS.COM fNi#~yacknowledged before me
that he executed the foregoing instrument for th~ u~s ~here!n stated, on this __ day of
_ _ _ _ 2015.
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Type of Identification Produced:
(Print, type or stamp commissioned name ofNotary)
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FOR THE OFFICE OF THE ATTORNEY GENERAL
ACCEPTED this
2:Z.. day of___,;/6<-+-------'j-r-Y-
___
STEVE
ARD
SENIOR ASSISTANT ATTORNEY GENERAL
CONSUMER PROTECTION DIVISION
DEPARTMENT OF LEGAL AFFAIRS
OFFICE OF THE ATTORNEY GENERAL
RDL
D
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CONSUMER PROTECTION DIVISION
DEPARTMENT OF LEGAL AFFAIRS
OFFICE OF THE ATTORNEY GENERAL
The Capitol, PL-0 1
Tallahassee, Florida 32399-1050
850-414-3600
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