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Affinion has paid millions of dollars in civil claims and state attorney general claims, in 47 states, for unfair and deceptive trade practices, and faced multiple class-action lawsuits. For example, Afinion settled a case with the State of New York for consumer fraud, as a result of which a fund is
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Webloyalty (and other loyalty programme companies) have contracts with popular retail websites to offer various 'online membership programmes'. When a consumer has made a purchase on one of contracted retail websites, the consumer will be offered a cashback or money-off voucher for the next purchase
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Webloyalty responded on 19 May 2010 to the introduction of the act by stating it had "refined its practices to help address senators' concerns and that it will fully comply with the bill once it is enacted" and that it changed its business practices by requiring consumers to enter their full credit
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Up until 2010, Webloyalty and other loyalty companies used a different method for registration. Via the so-called 'data-pass', these companies were able to instantly make use of the consumer's credit card data after its initial purchase on the retailers’ website and bill the consumer a monthly
45:
Webloyalty launched its first online discount programs in the United States in 1999. It later launched the 'Shopper
Discounts & Rewards' programme in the UK in 2007. It introduced its 'Remises & RĂ©ductions' programme in France in 2008 and 'Shoppen und Sparen' in Germany in 2010.
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By clicking on the link, the consumer is offered a sign-up page where personal details are required to complete the registration for the service. The consumer is asked to fill in their personal details, payment method and agree with the terms and conditions.
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membership fee. As the consumer was not prompted to enter their payment data again to register, many were unaware that clicking 'yes' enrolled them automatically in a monthly paid programme, often only discovering months later that they subscribed.
138:
The hearings investigated the companies' business practices, whereby consumers were enrolled in a "membership rewards" or "loyalty" club, often without their knowledge, after having purchased something through a separate website.
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were called before the
Committee on Commerce, Science and Transportation to explain its business practices during a full committee hearing on "Aggressive Sales Tactics on the Internet and their Impact on American Consumers".
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card information to enroll. Additionally, the company claimed to have improved their after-sales (or post-enrollment) process by sending frequent communications to its members and introduced “no hassle” cancellations.
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Webloyalty and other loyalty programme companies no longer makes use of the data-pass method. They now require all consumers to manually re-enter their credit card details in order to register.
30:, that runs reward programmes 'Shopper Discounts & Rewards' and 'Complete Savings'. These programmes require a monthly subscription in return for access to discounts similar to those on a
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This practice generated numerous complaints resulting in coverage on international newspapers and money advice websites. These practices were described as "misleading, but not illegal'.
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The committee investigation found that
Webloyalty and other "loyalty club" companies "used aggressive sales tactics to enroll online consumers in services without their consent".
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400:"Marketing Firm Agrees To $ 30 Million Settlement: Affinion Accused of Misleading Customers Into Paying Monthly Fees for Discount Clubs"
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into "certain e-commerce marketing practices that generate thousands of mysterious monthly charges to consumer credit cards".
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company
Affinion Group. Webloyalty launched 'Privilegios en Compras' in Spain and 'Acquisti e Risparmi' in Italy, with
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191:"Affinion Group, a Global Leader in Customer Engagement / Loyalty Solutions Completes Acquisition of Webloyalty"
34:. Previously, Webloyalty's marketing practices have attracted significant controversy and substantial lawsuits.
592:"Webloyalty Makes Statement About its Business Practices in Response to U.S. Senate Commerce Committee Report"
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547:"Rockefeller Introduces Landmark Bill To Ban Misleading Internet Sales Practices And Protect West Virginians"
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149:" on 5 January 2010 to "end the deceptive online sales tactics" as a conclusion to the investigation.
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maintained to fully reimburse people whose money was stolen by
Affinion's fraudulent practices.
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Its founding partner and CEO was
Richard Fernandes, who stepped down from his role in May 2013.
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454:"Chairman Rockefeller Launches Investigation Into Deceptive Online "Mystery Charges""
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Webloyalty announces
European expansion with launch of operations in Spain and Italy
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announced on 28 May 2009 a Senate
Commerce Committee investigation, led by chairman
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Webloyalty announced in
February 2013 that it will expand its programmes into the
475:"Aggressive sales tactics on the internet and their impact on American Consumers"
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on 15 December 2010. The act was eventually approved on 29 December 2010.
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United States Senate
Committee on Commerce, Science and Transportation
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US Senate Committee on Commerce, Science and Transportation Hearing
371:"Affinion Group faces class action after paying out claims to AGs"
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Court cases, convictions, and settlements for fraudulent practices
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On 17 November 2009, Webloyalty in the US, Affinion Group and
346:"High-street shops sever links with discount firm Webloyalty"
215:"Ryanair deal helps Webloyalty expand into the Irish market"
273:"Shopper Discounts & Rewards could cost you dear"
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This resulted in some retailers in the UK, including
484:. U.S. government printing office. November 17, 2009
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163:on 30 November 2010, and considered and passed the
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623:Digital marketing companies of the United States
425:"Affinion/Trilegiant and Webloyalty Settlements"
379:. No. 12 February 2014. Clarity Media Group
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145:The chairman of the committee introduced the "
321:"We save money for shopper discounts victims"
57:as its primary launch client that same year.
49:In 2011, Webloyalty was acquired by American
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236:"Change in Directors or Principal Officers"
568:"Restore Online Shoppers' Confidence Act"
505:"How Subscription Clubs Bring in Members"
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147:Restore Online Shoppers’ Confidence Act
398:Johnson, Andrew R. (10 October 2013).
258:Webloyalty.co.uk. Retrieved 2013-08-05
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573:. U.S. Government Printing Office
295:"Web discounts: be on your guard"
159:was considered and passed by the
526:"Senate Commerce press release"
433:New-York State Attorney General
297:. The Telegraph. Archived from
319:Sommerlad, Nick (2008-07-03).
271:Brignall, Miles (2010-02-13).
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618:Incentive marketing companies
293:Gammell, Kara (2010-05-15).
16:American technology company
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456:. Democratic Press Office
344:Brown, Rob (2009-02-22).
165:House of Representatives
594:. Chicago Press Release
404:Wall Street Journal
376:Washington Examiner
217:. Travolution.co.uk
62:Republic of Ireland
51:customer engagement
77:or image banner.
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612:Categories
598:2010-07-19
577:2013-08-05
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511:2010-07-19
460:2013-08-05
355:2013-08-13
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275:. Guardian
242:2013-07-24
221:2013-07-26
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175:References
68:Operations
20:Webloyalty
507:. PCWorld
429:ag.ny.gov
154:Congress'
93:Debenhams
75:pop-up ad
24:marketing
132:Vertrue
97:B&Q
55:Ryanair
41:History
161:Senate
73:via a
571:(PDF)
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