Thrive Market, an e-commerce platform specializing in natural and organic food products, has agreed to shell out a hefty $1.55 million in a legal slapdown over alleged deceptive business practices, including false advertising and sneaky subscription renewals. The Santa Clara County District Attorney’s Office, as part of a consumer protection crusade, spearheaded the charge against the company for violating parts of California's Automatic Renewal Law and False Advertising Law, according to the District Attorney's Office.

The legal battle, which ended in a settlement approved by Judge Colleen K. Sterne on April 30, drops $1,004,000 in civil penalties on Thrive Market's plate. Add $96,000 for investigative costs and a $450,000 bill for restitution. "Consumer protection laws are the cornerstone of a fair and competitive marketplace, safeguarding consumers from deceptive business practices," District Attorney Jeff Rosen stated. “We must continue to ensure that all businesses are playing by the same rules.”

Under the Golden State's ironclad consumer protection statutes, companies like Thrive Market are expected to steer clear of murky subscription waters by alerting customers crystal-clearly about renewing their subscriptions and snagging their explicit nod before doing so. Not to be overlooked, post-purchase acknowledgments detailing cancellation methods are mandated by law. Companies also can't play fast and loose with the truth when advertising their goods and services.

California's Thrive Market subscribers, current and unsuspecting victims of the disputed practices, will see a piece of the restitution pie. They're entitled to Thrive cash credited directly to their accounts, which is seamless and hassle-free. Thrive Market collaborated without kicking up a fuss during the investigation, tweaking their website, notifications, and ad stratagem to step up to legal scrutiny, said the District Attorney’s Office.