Fee Scheme Using Online Obituaries Halted By Attorney General

Today the State of Vermont settled all claims with two companies and an individual who were bilking consumers who donated to charities through online obituaries. Vermont will receive over $15,000 in penalties for violations of Vermont’s laws on charitable solicitations and consumer protection.

Donatic and Givalike, and principal Benjamin Katz of San Diego, California, contracted with online obituary sites to insert a “plug-in” where an obituary mentions a donation to a nonprofit in lieu of sending flowers to the loved ones of a deceased individual. The plug-in directs mourners to Givalike’s website, rather than to the deceased’s chosen nonprofit’s website. As a result of this scheme, 251 Vermonters paid unnecessary fees ranging from $1 to $35.50 per donation.

In the course of its investigation, the Attorney General found that Donatic, Givalike, and Mr. Katz failed to obtain consent from any nonprofit before soliciting donations, and failed to disclose that neither the deceased nor the family had chosen this arrangement for handling donations. In addition, all the parties failed to register as paid fundraisers in Vermont and to follow the Vermont Charitable Solicitations Act.

More information available here.