Federal Trade Commission v. Age of Learning, Inc. (ABCmouse)

$10 million in settlement


ABCmouse agreed to pay $10 million and change its marketing and billing practices after the FTC found it misled consumers about cancellations, withheld information and charged memberships without consent.

Our analysis

Age of Learning operates a membership-based online learning tool called ABCmouse Early Learning Academy for children between two and eight years old. ABCmouse failed to clearly disclose to consumers that their subscriptions would renew automatically, leading to additional charges, and made it difficult for them to cancel their memberships. The company also failed to disclose important information related to negative option plans, including the total amount consumers would be charged if they did not act to cancel and the deadlines by which they must cancel to avoid unwanted charges.
Consumers who tried to cancel by calling or emailing ABCmouse or submitting a customer support form were required to navigate a confusing process, often preventing many consumers from completing their cancellations. The company records show that hundreds of thousands of consumers who visited the ABCmouse cancellation path remained subscribed between 2015 and 2018.
The Federal Trade Commission has charged Age of Learning, the company that operates ABCmouse, with deceptive marketing and billing practices that violated several laws, including Section 5(a) of the FTC Act and Section 4 of the Restore Online Shoppers' Confidence Act (ROSCA). The company was accused of using deceptive tactics, including forced continuity, hidden information, and the hard to cancel approach to prevent consumers from canceling their memberships.


ABCmouse agreed to a proposed settlement order with the Federal Trade Commission that includes a $10 million judgment and new marketing and billing practices. The order prohibits the company from making misrepresentations about negative option plans and requires clear disclosure of cancellation procedures, charges, and deadlines. Additionally, ABCmouse must explain key terms and obtain informed consent before enrolling consumers in automatic billing programs, as well as providing simple cancellation mechanisms.


Federal Trade Commission and Age of Learning [ABCmouse and ABCmouse.com]

Case number

Case 2:20-cv-07996

Related deceptive patterns

Related laws

Legal enforcement database by Leiser, Santos and Doshi

The information about laws and cases on this website is brought to you by the Leiser, Santos and Doshi enforcement database.

About us