I don’t use this blog for rants; I prefer to do that in comments section right next the writer’s piece. But this online retailer scam is breathtaking in its breadth and audacity. Here’s the short of it and links to the article and the congressional information.
Article summary and link:
“Ever wonder if those last-minute offers on e-commerce sites for coupons and savings are actually legitimate? According to the Senate Commerce Committee, they are actually coordinated efforts to dupe consumers – to the tune of $1.4 billion.
“The committee on Tuesday released a report that slammed online marketing companies Affinion, Vertrue, and Webloyalty for selling unfamiliar membership programs to consumers who are in the process of buying products on trusted Web sites.
“Entering the e-mail address actually signs consumers up for membership programs through companies like Affinion, Vertrue, and Webloyalty, but many consumers do not read the fine print that explains this arrangement. Credit card information is pulled from the original purchase page. [Emphasis added!] Most do not know they have agreed to these services until the monthly charges show up on their credit card statements; most between $10 and $20.”
Congressional report key finding and link:
*Using aggressive sales tactics to enroll consumers in unwanted membership clubs is a billion-dollar business. Affinion, Vertrue, Webloyalty and their e-commerce partners have earned over $1.4 billion in revenue by using aggressive tactics to charge Internet shoppers for club membership programs. Since 1999, Internet consumers have been enrolled more than 35 million times in Affinion, Vertrue, and Webloyalty‘s membership clubs. In June 2009, there were 4 million Internet consumers currently enrolled in these three companies‘ membership programs.“
Partners Paid Over $10 Million (and link):
1-800-Flowers.com
Buy.com
Classmates.com
Columbia House
Confi-Check
Expedia/Hotels.com
Fandango FTD
Hotwire
InQ Intelius
MovieTickets.com
Orbitz
Priceline
Redcats USA
Shutterfly
Travelocity
US Airways
VistaPrint
