Protecting What's Right

NY AG, on-line marketing firm settle Internet shopping fee case for $8 million

Aug282010

The New York Attorney General has announced an $8 million settlement with Affinon Group over charges that the company tricked online shoppers to sign up for discount clubs with hidden fees.  A restitution fund for consumers duped out of their money will be set up with $5 million of the settlement; the remaining $3 million comprises fines payable to the state.  Five other companies that used the marketing firm and others for similar programs have also settled the case for $2 million in restitution and fines.

Affinon was involved in a practice where online shoppers were offered cash back on purchases if they clicked on a box as they completed their transaction.  But shoppers typically didn’t notice the fine print: that doing so enrolled them in a “customer loyalty club” that automatically charged their credit card with a monthly fee.

For the full story, go to the Wall Street Journal.