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The state of Ohio has agreed to a settled settlement in a lawsuit it filed against two companies, which it accused them of using deceptive advertising practices to persuade Ohio State University students to apply for credit cards. The Ohio attorney general's office, which announced the settlement early earlier this week, had sued Campus Dimensions, a Pennsylvania-based marketing firm, and restaurant chain OSU La Bamba Inc., in September 2007. The companies had joined for a promotion offering a free burrito and drink to students who participated, but there was no mention that that students would have to apply for a credit card to get the free meal, a violation of the state's Consumer Sales Practices Act, according to the lawsuit. The settlement requires the companies to turn over profits from the event to the attorney general's office, which plans to donate the funds to a non-profit group that promotes financial literacy for college students. The companies did not disclose the total profit from the event. The settlement states that the companies will not participate in any credit card marketing plan that includes the violations alleged in the original suit, including: failing to clearly state the conditions of an offer, ; using bait advertising; , and using the word "free" without clearly stating all terms and obligations. The defendants did not return calls for comment.
