DRM News

Apparently it’s some sort of legal theme day on DRM News today.

Attorney General Andrew Cuomo announced today that the New York State Attorney General’s office has issues subpoenas to 22 retailers over their deceptively linking purchasers to membership programs and the like on other sites without clearly disclosing the fact that those programs often charge money, and that they are frequently being given the purchaser’s debit/credit card information.

Cuomo’s investigation has found that when consumers shop online from familiar retailers, they are often presented with a discount or cash-back incentive offer as they complete their purchase. When consumers click on the discount or incentive banner, they are unknowingly directed to a membership program seller’s Web page that is separate from the online retailer’s site. The consumer is then instructed through large, colorful print and voice prompts to accept the discount or incentive. Information about joining the membership program and its ramifications, including the fact that the consumer is agreeing to transfer his or her credit or debit card account information, is buried in fine print and cluttered text. Small and recurring charges then begin to appear on consumers’ credit or debit card bills from unfamiliar companies. Because of the low dollar amount, the charges may go unnoticed for some time.

Many people don’t even realize that their debit/credit card information is being shared with these third parties (listed as Webloyalty, Affinion/Trilegiant and Vertrue) during this process. The subpoenas seek to gain information about exactly what is being shared, under what context it’s being shared, and to begin seeking compensation.

The 22 retailers are :

Barnes & Noble, Orbitz.com, Buy.com, Ticketmaster.com, MovieTickets.com, FTD.com, Shutterfly.com, 1-800Flowers.com, Avon.com, Budget, Staples.com, Priceline.com, GMAC Mortgage, Classmates.com, Travelocity, Vistaprint, Intelius, Hotwire.com, Expedia/Hotels.com, Columbia House, Pizza Hut and Gamestop/EB Games.