Possible legislative battle looms over deceptive marketing practices

January 8th, 2010 | by admin |

A looming dispute involving online marketing programs that often place monthly charges on peoples’ credit cards without their knowledge shows little sign of ending soon.

Last month, Senator Jay Rockefeller, a West Virginia Democrat who chairs the Commerce Committee, took aim at several Connecticut-based companies that have angered consumers nationwide by placing mysterious monthly charges on their accounts as part of so-called “affiliate marketing” programs.

Particularly irritating to many consumers is the fact that many of them were patronizing large and supposedly reputable online businesses, including airlines and movie ticket websites, that proceeded to sell their credit card information to these controversial companies.

To avoid the charges, consumers have had to carefully read the fine print on their transactions and avoid clicking on any vaguely-worded pitches that claim to offer discounts, rewards or other such benefits. Some consumers have also reported that once started, the monthly charges can be difficult to stop.

“There are more than 4 million American consumers whose credit cards are being charged by mysterious membership clubs after shopping online and most of these 4 million consumers don’t even know it’s happening,” Rockefeller said last month, adding that more than 30 million Americans are thought to have been preyed upon by such tactics.

Now, a report by CNET News says that instead of backing down, the companies in question are insisting that they have sufficiently addressed such concerns and have even hired Washington-based lobbying firms that specialize in crisis management.

With a possible legislative battle shaping up over this issue that could delay or potentially block any benefits for consumers, it’s more important than ever for cardholders to check their monthly statements, read the fine print in the online transactions they make, and contest and investigate any mysterious charges that do show up on their credit card accounts.

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