More Firms Drop Datapass Marketing
Senate Commerce Committee Chairman John (Jay) Rockefeller, D-W.Va., said Thursday that all three of the companies that have been the subject of an investigation by his panel have agreed to drop the controversial practice of online datapass marketing. Following on an announcement earlier this month from Affinion Group, Web Loyalty and Vertrue recently told the committee that they would now require consumers to enter their full 16 digit credit card number in order to enroll in the firms' online membership programs.
The committee's investigation of Affinion, Web Loyalty and Vertrue has focused on their partnerships with trusted online retail sites such as FTD and Fandango, that often result in getting consumers, usually without their full knowledge, to sign up for discount club memberships with the three companies as part of a misleading step connected to the online checkout process with the retail sites. As part of the process, consumer credit and debit card information is passed on to the marketing firms usually without consumers' knowledge.
"Affinion, Vertrue, and Webloyalty's decision to change their aggressive sales tactics by adding the 16 digit credit card reentry requirement is a step in the right direction for American consumers," Rockefeller said in a statement. "Our ongoing Commerce Committee investigation into these companies' marketing tactics uncovered alarming evidence. Millions of consumers were unknowingly enrolled in membership clubs offered by the companies and hundreds of millions of dollars were charged to their credit cards without their consent." He said the committee would continue its work aimed at curbing misleading Internet tactics such as online datapass marketing.
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