All of our loyal readers know that MDPCE is diligently prosecuting claims against Vertrue and Adaptive Marketing for their unfair and deceptive post-transactional marketing practices (just one of the ways unscrupulous marketers “cram” unwanted services onto unsuspecting consumers). As alleged in various filings in federal district courts in several states, Vertrue and Adaptive’s scheme, known as post-transactional marketing, works by deceiving consumers into entering an email address to claim what appears to be a simple reward for filling out a consumer survey or an offer of cash back as a “thank you” for an otherwise legitimate Internet purchase. Only in out of the way fine print do they disclose that entering an email address will result in the transfer to Vertrue of a consumer’s credit card information, which was provided in connection with a completely separate and unrelated purchase with a different Internet retailer.
Unfortunately, Vertrue and Adaptive are not the only solicitors consumers need to watch out for. Another prominent practice that appears to be unfair and deceptive involves unauthorized charges to consumers’ credit cards, or even unauthorized debits from their checking accounts, for “online discount” programs that go under various names (below) but appear to be the same company:
Online Discount Membership
Liberty Discount Club
Freedom Subscription
Freedom Royal
Uniguard
The scam seems to work a few different ways. Some consumers, who try to cancel, report that their credit card companies were told that they were “sold” the programs on the telephone, usually in conjunction with an intentional purchase. For example, a consumer might be offered a credit card, or a credit line increase or upgrade on an existing card, and at the end of the call, a new telemarketer will come on the line offering a “free reward.” However, nothing is free, and in this case, consumers are surreptitiously enrolled in the discount program that comes with recurring, and expensive, monthly fees. The scam can also take the form of a “free trial” offered in the mail or on the Internet that can be cancelled at any time, but the cancellation information comes disguised as junk mail that is usually thrown out. And of course, many companies seem to be following Adaptive’s lead in using deceptive Internet marketing to trick consumers into enrolling in worthless programs.
If you or anyone you know has been the victim of unauthorized credit card or checking account charges for “discount programs,” please contact us to discuss your legal options.