DENVER, COLORADO (BNO NEWS) – Colorado attorneys reached a settlement with Nutra Pills, Inc., and its owner Joshua Bezoni, to bring the Internet seller of nutritional supplements into compliance with Colorado’s consumer protection laws and to reimburse consumers affected over the last year, prosecutors announced on Friday.

Nutra Pills, a company located in Arvada, Colorado, used the “free-to-pay conversion” marketing since 2005, which consists in consumers unknowingly incurring ongoing payments for products that they were told were free. Consumers signed for free trials of Bezoni’s company products and agreed to pay for shipment charges only.

When the free trial products arrived they were sent along a two-month supply that needed to be returned within a time limit or the customer will have to pay $80 for the package. In addition, if the customer failed to return the product, they were enrolled into a continuity plan, that sent products bi-monthly for the same $80 fee.

Thanks to this unlawful marketing scheme the company generated $40 million in sales in 2009. Since the investigation against Nutra Pills was launched a year ago, $9 million have been refunded to customers and the company has ceased its operations.

“This agreement will ensure that Mr. Bezoni’s future businesses will be required to clearly disclose exactly what consumers are signing up for when they request a free sample. Consumers should always beware of any offer that purports to be free,” the Attorney General said.

Under the terms of the settlement, Bezoni and Nutra Pills will be prohibited from marketing “free” products unless they are; they will need express authorization for enrolling customers into continuity plans and for charging fees. More important they will have to make their plans and policies clear and fully disclosed to all customers, including the cancellation policy.

Bezoni and Nutra Pills must reimburse all consumer complainants who filed complaints since December 2006; and all consumers who requested but were denied refunds since December 2008.