• February 23, 2009

Mobile content companies New Motion and Traffix, which do business as Atrinsic, have agreed to pay $1 million to the Florida Attorney General to settle an investigation into the marketing of "free" ringtones. Atrinsic also promised that it will conspicuously disclose all pricing requirements.

The Florida Attorney General has aggressively targeted companies that allegedly trick people into signing up for paid monthly subscriptions by offering supposedly free ringtones and other mobile content. The authorities got involved after consumers would click on ads for "free" ringtones and then provide companies with their cell phone numbers, without realizing that they were actually signing up for subscription services.

Earlier this month, Google began requiring companies to disclose the price of ringtone services in the search ad copy, as a result of talks with the Florida authorities. Other companies including AzoogleAds and Media Breakaway have paid $1 million to the Florida Attorney General's office, while AT&T paid $2.5 million.--Wendy Davis