Firm Promises Changes To Marketing Tactics
In anticipation of a Senate hearing Tuesday to examine aggresive sales practices on the Internet, marketing firm Affinion announced Friday it is implementing new marketing standards after coming under scrutiny for allegedly charging consumers for services they said they didn't ask seek. The Senate Commerce, Science and Transportation Committee has been investigating Affinion and two other marketing companies, Vertrue and Webloyalty, for charging consumers monthly membership fees as part of agreements with major online retailers.
In a July letter to Affinion, Senate Commerce Chairman John (Jay) Rockefeller, D-W.V., said "consumers regularly complain that your company charges their credit card or debit card on a monthly basis for services they are not aware they have purchased." The letter noted that consumers are automatically signed up for an Affinion service if they click on an offer for a cash-back award on their next purchase after they have purchased an item online from an Affinion partner, which provides Affinion with a consumers' credit or debit card information. Rockefeller sought information from Affinion about its marketing practices and its agreements with its partners.
Affinion announced Friday that it would take several steps to address concerns raised by the committee and others including providing "enhanced clear and conspicuous disclosure of all material terms of every offer," obtaining "express informed consent" from consumers before billing them for a service, requiring consumers to provide some credit card information before signing up for a service, clearly identifying itself in its solicitations and other steps that will be implemented in coming months. "While our marketing has always incorporated clear, prominent and unambiguous terms, we continually re-evaluate our offers to make certain consumers are able to make fully informed decisions," Affinion Senior Vice President James Hart said in a statement.
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