Discount Club Affinion Agrees to $8 Million Settlement
Thursday, August 19, 2010
The marketing company Affinion has agreed to pay $8 million to settle allegations that it tricked Internet shoppers into signing up for discount clubs with hidden fees.
The settlement was announced by New York Attorney General and gubernatorial candidate Andrew Cuomo, who says the company and its subsidiary, Trilegiant, duped thousands of consumers in New York. Internet shoppers were offered cash back simply by clicking a box as they completed their purchases. Many didn't notice that accepting the offer enrolled them in a discount club with a monthly fee.
As part of the settlement, Cuomo says the company must refund those customers, and reform its online marketing.