November 20, 2009
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You Could Be A Victim Of Online Retailers, Pt.1
Clicking yes will cost you!A recent investigation into the marketing practices of several online retailers which cost Americans over $1.4 billion in unsuspected credit card transactions has prompted some retailers to sever ties with the online companies. The U.S. Government is looking into the activities of some online retailers like Priceline, Classmates, FTD, Shutterfly, and Orbiz who have partnered with marketers Affinion, Vertrue, and Webloyalty on what some considered hidden credit card scams. The Senate Commerce Committee is conducting the investigation and says they have a "staggering amount" of evidence which indicates that the online retailers are misleading credit card customers into signing up for loyalty programs run by the three marketers. The retailers have defended their activities and say it is the consumers fault for not reading the terms over closely.
The Senate Committee launched the investigation after a large number of complaints began pouring in from credit card consumers saying they have discovered unauthorized charges on their card accounts and don't know where or how they got there. The investigation revealed that while customers are making purchases on such sites as Priceline, Classmates, etc., a popup window notifies them that they are entitled to a $10 or more cash back coupon. The ad asks for an email address and a click "yes" to proceed. Consumers say the ad is misleading. In actuality, in small print are the terms of the deal which really is a membership sign up which charges a monthly fee to the consumer's credit card.
The Senate committee has said the activities of Affinion, Verture, and Webloyalty are actually a scam, robbery, and theft. The investigation revealed that the online retailers had made agreements with these marketers to sell them their credit card customer's information. Despite the fact that the Senate Committee has spoken out very harshly regarding the deceptive practices of these marketing companies, most of the online retailers have yet to end these relationships.