November 23rd, 2009
Online retailers, marketing firms scam consumers for $1.4 billion
Posted by Andrew Nusca @ 4:18 pm
A U.S. government investigation has prompted several well-known online retailers to sever ties with marketing firms after both were accused of working together to deceive customers out of $1.4 billion
The retailers, including Priceline.com, Classmates.com, FTD.com, Shutterfly.com and Orbitz.com, were accused of working with marketers Affinion
to mislead consumers into unknowingly signing up for “affinity” or “loyalty” programs that would charge their credit card accounts.
The marketers are currently still in business. So are the retailers involved, some of which deny the extensive documentation (.pdf)
aired by the U.S. Senate Commerce committee during a hearing last week
that implies that the retailers willingly partnered with the marketers to allow access to their customers.