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Texas, 47 states win $30M settlement for membership marketing fraud

Texas, 47 states win $30M settlement for membership marketing fraud
MGN Online via www.leadsandprofits.com
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Friday, October 11, 2013 - 10:47am

A multi-state investigation into a forced membership program has resulted in a $30M settlement for 48 states and the District of Columbia, including Texas, reports the Texas Attorney General's office.

The lawsuit, filed against Affinion, parent company of providers Trilegiant and Webloyalty, alleged they "relied on unlawful practices to recruit and deceive their customers" in a variety of services that include promised reduced-cost travel, roadside assistance and credit monitoring, through direct mail offers and what is known as "data pass".

A "data pass" happens when a merchant offers a third-party product to the purchaser before the purchase is complete. Consumers often don't know they were signing up for the offer, until an unexpected monthly fee started accruing.

$19 million of the $30 million settlement will be used for restitution.

Click here for a link to a list of business names utilized in the practice.

If you think you may be eligible for a refund from Affinion for unauthorized charges, file complaints with the Office of the Attorney General by calling (800) 252-8011 or complete a complaint form online at www.texasattorneygeneral.gov.

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